Why Ironwood

Why Ironwood: A Deep Dive into Ironwood Investment Management, LLC

Amongst the forest of investment management firms, one stands out not just for its financial prowess, but also for its lasting commitment to ethical standards and potential growth. Ironwood Investment Management, LLC, founded in 1997 and based in Boston, has carved out a niche for itself by seamlessly blending robust financial acumen with an unyielding dedication to ethical practices. We will delve into what makes Ironwood unique, exploring its core values, investment philosophy, performance, and innovative strategies.

A Firm Rooted in Values and Integrity

Since its establishment in 1997, Ironwood Investment Management, LLC has consistently adhered to a philosophy that integrates deep market knowledge with a steadfast commitment to ethical practices. This dual focus not only fortifies Ironwood’s position within the competitive investment landscape but also aligns closely with the personal values of its employees and clients. By managing investments with the utmost integrity and foresight, Ironwood strives to meet its clients’ financial goals without compromising on ethical standards.

Ironwood’s ethos can be likened to the Ironwood tree itself—strong, durable, and useful. The Ironwood Small Cap Core strategy strives for growth and sustainability, aiming to make a positive impact for its clients, while demonstrating leadership in ESG and other relevant governance aspects. This holistic approach creates a robust framework that promotes potential growth and success, resonating deeply with both their team and clientele.

A Philosophy Rooted in Research and Active Management

At the heart of Ironwood’s success is its commitment to performance, which is rooted in rigorous fundamental research and prudent portfolio management. The firm’s strategy revolves around long-term investments and a deep understanding of market dynamics, ensuring that each decision is backed by thorough analysis and a clear vision for growth. This disciplined approach has enabled Ironwood to navigate the complexities of the financial markets effectively, sustaining its viability through various market cycles.

Ironwood’s focus on small-cap strategies leverages its expertise in sectors influenced by environmental science, engineering, and economics. This strategic outlook underscores the firm’s philosophy of:

  • Rigorous fundamental research: identifying high Ironwood Quality (High I-Q) companies
  • A flexible approach: diversified exposures with room for winners to run
  • Opportunistic investing in volatility: exploiting negative sentiment and momentum

These attributes, based on sound judgment, promote long-term growth, and resonate deeply with their clients and stakeholders.

Performance and Track Record

Ironwood’s performance over the years is a testament to its disciplined approach. The latest feather in Ironwood’s cap is their recent “Top Gun” ranking by PSN for their Small Cap Core strategy. See our recent Blog on this topic. For the quarter ending March 31, 2024, Ironwood’s Small Cap Core product achieved an impressive feat – securing the #1 spot for both quarterly and one-year returns within the PSN Small Cap Core Universe.

The strategy has achieved an absolute return of 12% CAGR since 1999, demonstrating its long-term ability to generate returns for its clients. With $240 million in assets under management (AUM) as of March 31, 2024, Ironwood has proven its capability to manage its client’s capital, while maintaining a focus on growth.

Innovative Strategies for Growth

Ironwood’s investment philosophy is rooted in foundational beliefs that have stood the test of time. The firm firmly believes that equity investments in high-quality companies are a powerful means to create wealth over time. Moreover, the Ironwood Small Cap Core strategy  recognizes the critical role that a company’s management of Environmental, Social, and Governance (ESG) issues plays in its long-term performance. By integrating ESG considerations into its investment decisions, the Ironwood Small Cap Core strategy ensures that its portfolio companies are well-positioned for potential growth.

Ironwood actively seeks out High Ironwood Quality (I-Q) companies, characterized by exceptional management teams, excellent market positions, and promising future opportunities. These companies boast entrepreneurial and experienced leaders who understand how to identify and create real business optionality. Additionally, they maintain a solid financial condition, a leading competitive position with an expanding moat, and an edge using  a time-tested business model.

The Ironwood Advantage

Ironwood Investment Management LLC, epitomizes a blend of growth, strength, and discipline. This unique combination of attributes has allowed the firm to thrive in both favorable and challenging market conditions. By maintaining a relentless focus on high-quality companies and integrating ESG considerations into a significant portion of its investment process, Ironwood and its Small Cap Core strategy has cultivated a portfolio that not only generates returns but also contributes positively to society and the environment.

Ironwood’s commitment to aligning personal and professional values with its investment approach further strengthens its position as a trusted partner for clients seeking both financial returns and ethical investment solutions. This alignment of values ensures that investments are managed with the utmost integrity and foresight, providing clients with peace of mind and confidence in their financial future.

A Legacy of Disciplined Performance

Ironwood’s disciplined approach to investment management is built on a foundation of rigorous standards and a deep understanding of market dynamics. The firm is committed to striving for performance, with each investment decision backed by thorough research and analysis. This meticulous approach has enabled Ironwood to navigate the complexities of the financial markets effectively, sustaining  through various market cycles.

The firm’s focus on small-cap investing and sectors influenced by environmental science, engineering, and economics has allowed it to cultivate a portfolio that weathers  both favorable and unforgiving market conditions. This strategic persistence underscores Ironwood’s philosophy of potential growth and sound judgment, which resonates deeply with their clients and stakeholders.

Strengthening Your Portfolio with Ironwood

While Ironwood’s 25+ year history may be a mere blip compared to the millennia-long lifespan of the Ironwood tree, the firm takes immense pride in its achievements thus far. Ironwood remains as passionate in its pursuit of enduring growth today as it was in 1997. The firm’s commitment to ethical practices, rigorous research, and active management has cemented its reputation as a trusted partner in the investment landscape.

In conclusion, Ironwood Investment Management, LLC stands out not just for its financial acumen, but also for its steadfast dedication to ethical practices and potential growth. By aligning personal and professional values with its investment approach, Ironwood aims to achieve its clients’ financial goals with high integrity and the utmost foresight. For those seeking a trusted partner to navigate the complexities of the financial markets, Ironwood offers a compelling proposition—one that delivers both returns and a positive impact on society and the environment.

PERFORMANCE DATA AND DISCLOSURES

Ironwood Investment Management®, LLC (Ironwood) is an independently managed investment advisory firm providing investment advisory services to institutional clients, mutual funds and high-net-worth clients.  The firm is a registered investment adviser with the Securities and Exchange Commission. SEC Registration does not imply a certain level of skill or training. Accounts in the Small Cap Core composite include separately managed, fully discretionary, fee-paying portfolios.  Portfolios are invested in undervalued securities, the  majority of which will have market capitalizations under $2.5 billion at cost, including securities with growth and/or value characteristics.  Securities are considered  undervalued when management believes the current share price does not  accurately reflect the long-term economic value of the underlying company. Ironwood Investment Management, LLC claims compliance with the Global          Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Ironwood Investment Management, LLC has been independently verified for the periods January 1, 1999 through December 31, 2021. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis.  The Small Cap Core composite has had a performance examination for the periods July 1, 2002 to December 31, 2021.  The verification and performance examination reports are available upon request. GIPS® is a registered trademark of CFA Institute.  CFA  Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The creation date of the composite:  July 2002. Performance inception date of the composite: January 1, 1999. Prior to July 2002, portfolios were included in the composite when at least 75% of the portfolio was invested in equity securities and when at least 75% of the portfolio was invested according to the investment style of the composite. Subsequent to July, 2002, portfolios are included in the composite after the first full month of being fully invested.  Returns are presented gross and net of management fees and include the reinvestment of all income. Net  returns are calculated based on the highest fee of 1.00%. Investment management fees are 1.00% on the first $25 million, 0.90% on the next $25 million, 0.80% on the next $50 million, and 0.75% over $100 million on an annual basis and a client’s return will be reduced by these and   other related expenses. The actual fee charged to an individual  portfolio may vary by size and type of portfolio and may be negotiated. Actual investment advisory fees incurred by  clients may vary. The Russell 2000 Index consists of the 2000 smallest stocks in the Russell 3000 Index that represents approximately 8% of the U.S. equity market capitalization.  The indices have been reconstituted annually since 1989. Ironwood returns and Index performance reflect reinvested interest income and dividends, in U.S. dollars. A list of composite descriptions and a list of limited   distribution pooled fund descriptions are available upon request. Past performance is not indicative of future results. Policies for valuing investments, calculating performance and preparing GIPS Reports are available upon request. Prior to May 2006, the Firm was known as Ironwood Capital Management, LLC.

John Grady

Research & Operations Associate

As Research & Operations Associate, John assists the equity research effort in support of the portfolio managers and works closely with the operations department. Prior to joining the Ironwood team in 2023, John earned his BA in Psychology, from the University of Denver. While studying, John developed several business plans for small businesses in the Denver area for a capstone project for his business minor. Prior to joining Ironwood, John was developing his research skills through an apprenticeship by regularly meeting with management teams, attending investor conferences, and developing investment theses.

Cameron Marshall

Trading & Research Associate

As a Trading & Research Associate, Cameron is responsible for investment portfolio trading and operations as well as conducting equity research in support of the portfolio managers. Prior to joining the Ironwood team in 2022, Cameron earned his BA in Economics, with a minor in Mandarin, from the University of New Hampshire. While studying, Cam held several internships working with investment teams across asset classes in both private and public markets. An active member of his community, Cam has contributed his time and energy to charities including Best Buddies International, Be Positive for CHaD Kids, and Positive Tracks.

Alyssa Wade

Director of Client Relationships

Alyssa Wade is the Director of Client Relationships and assists in the Marketing Department at Ironwood Investment Management, LLC®. Prior to joining Ironwood, Alyssa worked at Boston Technologies and Regan Communications Group. She holds a Bachelor of Arts in Communication with a minor in Education from the University of Massachusetts, Amherst.

Regina Wiedenski

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Regina Wiedenski is Co-Portfolio Manager for the VIP strategies at Ironwood Investment Management, LLC®. Ms. Wiedenski has an MS in Management with a concentration in finance from the Sloan School at M.I.T. and a BS from M.I.T. Prior to joining Ironwood to manage VIP portfolios, she was a Portfolio Manager at J.L. Kaplan Associates. Previously she was an equity analyst at Advest, Inc. and had spent nine years as an analyst at Adams, Harkness & Hill covering healthcare, specialty chemical, instrumentation and publishing companies. She began her career as a financial analyst at Morgan Stanley.

Paul Weisman

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Paul Weisman is Co-Portfolio Manager for the Value Investment Partners (VIP) strategies at Ironwood Investment Management, LLC®. Mr. Weisman has an MA in Industrial Organization (Applied Microeconomics) from Boston University and a BA from Haverford College. Prior to joining Ironwood as the head of the V.I.P. team in 2009, Mr. Weisman was Chief Investment Officer at J.L. Kaplan Associates which he joined in 1986. From 1983 to 1986 he was an investment analyst at Delphi Management.

Ravi Jain, Ph.D., CFA

Partner

Ravi Jain, Ph.D., CFA is a Partner at Ironwood Investment Management, LLC®. Dr. Jain has a Ph.D. in Finance from the University of Missouri Columbia (doctoral thesis on corporate spinoffs), a Master of Finance and Bachelor of Commerce from the University of Delhi. He is also a Chartered Financial Analyst® (CFA). Dr. Jain is an Associate Professor of Finance at the University of Massachusetts Lowell where his research focuses on capital markets and corporate finance.

Warren Isabelle

Portfolio Manager

Warren Isabelle, CFA is a Portfolio Manager at Ironwood Investment Management, LLC®. Prior to forming Ironwood Investment Management, LLC® in 1997, Warren was the Head of Domestic Equities at Pioneer Management Company and the Portfolio Manager of more than $3 billion in small cap assets including the Pioneer Capital Growth Fund (later renamed Pioneer Mid-Cap Value Fund), Pioneer Small Company Fund and several institutional portfolios. Warren has received national attention for his research efforts and results.  He has also appeared in feature articles in Barron’s, Business Week, Forbes, Fortune, Money and The Wall Street Journal and has appeared on “Wall Street Week with Louis Rukeyser.” Prior to joining Pioneer, Warren was an Analyst at The Hartford Insurance Company.  He earned a BS in Chemistry from Lowell Technological Institute, an MS in Polymer Science and Engineering from the University of Massachusetts, and an MBA in Finance from the Wharton School of the University of Pennsylvania.

Paul Anderson

Executive Managing Partner

Paul Anderson, CFA is Executive Managing Partner of and leads investor relations, business development and management activities for Ironwood and is a member of the management committee.  Paul joined Ironwood in December 2020 after 12 years at Natixis Investment Managers where he developed and led the U.S. institutional distribution group at Natixis Distributors L.P. Over the course of his 30 years in the industry, Paul has held roles in investment research, sales and management.  Paul holds a Bachelor of Arts in Economics from the University of New Hampshire, and an MBA from Vanderbilt University.  He is a member of the Committee on Investor Responsibility at UNH advising the UNH Foundation on sustainable investment practices.

Shantelle Reidy

Executive Managing Partner
Chief Financial Officer
Chief Compliance Officer

Shantelle Reidy is Executive Managing Partner and the Chief Financial Officer and Chief Compliance Officer for Ironwood Investment Management, LLC®. Shantelle is a member of the management committee and has served Ironwood in various capacities since joining the firm in 1998, including as Executive Director of Trading and Operations from 2001 to 2014. Prior to joining Ironwood, Shantelle was an Investor Relations Analyst at Talbots, Inc. where she conducted research for the company and managed the firm’s communication with investment analysts. Shantelle holds a Bachelor of Arts degree in Economics and Political Science from Boston University and a Master of Business Administration in Marketing and Finance from the Boston University School of Management.

Donald Collins, CFA

Executive Managing Partner
Portfolio Manager

Donald Collins, CFA is an Executive Managing Partner and Portfolio Manager at Ironwood Investment Management, LLC® and is a member of the management committee. Prior to joining Ironwood in 1998, Don was a portfolio manager with Boston Advisors where he managed portfolios for institutions and high net worth clients.  During his tenure at Boston Advisors, Don participated in the management of the Advest Advantage family of mutual funds and managed the Advantage Special Fund.  Don began his career as a Manager for Burgess & Leith.  He earned his BA in Geology from Boston University and studied at the Boston University School of Business.  In addition, Don is the Director and Investment Committee Chairman for the Abelard Foundation, Chairman and Commissioner of Trust Funds for the Town of Lincoln, MA and Director and Chief Financial Officer at Igan Biosciences.