Shares of Redwood Trust (RWT, Financial) have rebounded over 50% in the past six months but remain the Fund's top year-to -date detractor given the depth of its first-quarter decline. Management acted decisively to steer the business through the worst of the crisis, and the company is now on firmer footing. After recovering from clearly distressed prices, we view the risk/reward as less favorable going forward, and we elected to close our remaining position.
From Wallace Weitz (Trades, Portfolio)'s Partners III Opportunity Fund third-quarter 2020 commentary.
