UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ___)
REDWOOD TRUST, INC. (RWT)
(Name of Issuer)
Common Stock
(Title of Class of Securities)
758075402
(CUSIP Number)
David Nierenberg
The D3 Family Funds
19605 NE 8th Street
Camas, WA 98607
(360) 604-8600
With a copy to:
Henry Lesser, Esq.
DLA Piper US LLP
2000 University Avenue
East Palo Alto, CA 94303
(650) 833-2000
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 29, 2007
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box |_|.
1
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
317,779 Common shares (1.0%)
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 317,779
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 317,779; for all reporting
persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
2
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The DIII Offshore Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
181,385 common shares (0.6%)
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 181,385
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 181,385; for all reporting
persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
3
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Bulldog Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,171,705 common shares (3.6%)
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,171,705
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 1,171,705; for all reporting
persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
4
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Canadian Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
62,340 common shares (0.2%)
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 62,340
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 62,340 shares; for all
reporting persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
5
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Company, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,733,209 shares (5.4%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,733,209 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 1,733,209; for all reporting
persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
--------------------------------------------------------------------------------
6
CUSIP No. 758075402
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Offshore, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 181,385 common shares (0.6%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
181,385 common shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 181,385; for all reporting
persons as a group, 1,733,209 shares (5.4%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
7
Item 1. Security and Issuer.
This Schedule 13D (the "Schedule 13D") is being filed with respect to the
shares of common stock (the "Shares") of Redwood Trust, Inc. a Maryland
corporation (the "Company" or "RWT").
Item 2. Identity and Background.
This Schedule 13D is being filed by the following four limited
partnerships (the "D3 Family Funds") and the following two corporations which
are the sole general partners of the D3 Family Fund(s) indicated below
(collectively, the "Reporting Persons").
(a) The Reporting Persons are: The D3 Family Fund, L.P., a Washington
limited partnership; The DIII Offshore Fund, L.P., a Bahamas limited
partnership; The D3 Family Bulldog Fund, L.P. a Washington limited partnership;
The D3 Family Canadian Fund, L.P., a Washington limited partnership; Nierenberg
Investment Management Company, Inc., a Washington corporation ("NIMCO") which is
the sole general partner of those D3 Family Funds organized under the law of the
State of Washington; and Nierenberg Investment Management Offshore, Inc., which
is a wholly-owned subsidiary of NIMCO and is the sole general partner of the D3
Family Fund organized under the law of The Bahamas.
(b) The business address of each of the Reporting Persons is 19605 N.E.
8th Street, Camas, Washington 98607.
(c) The D3 Family Funds are private investment partnerships, the principal
business of which is investing in the equities of public micro-cap issuers. The
principal business of the corporate Reporting Persons is to serve as the general
partner of the applicable D3 Family Fund(s).
(d, e) During the past five years, no Reporting Person has been convicted
in a criminal proceeding, or been a party to a civil proceeding, required to be
disclosed pursuant to Items 2(d) or (e) of Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
The total amount of funds used by the Reporting Persons to pay for the
purchases of Shares reported in Item 5(c) was $26,697,370 and the total amount
of funds used by the Reporting Persons to make all purchases of Shares
beneficially owned by the Reporting Persons, as reported in Item 5(a,b), was
$55,180,522. The sources of such funds were the working capital of the
respective D3 Family Fund that purchased the applicable Shares.
Item 4. Purpose of Transaction.
On November 29, 2007, through separate purchases by three of the D3 Family
Funds directly from the Company pursuant to its Direct Stock Purchase and
Dividend Reinvestment Plan (the "RWT Plan"), the Reporting Persons became the
beneficial owners of certain Shares as reported in Item 5(c). Based on the
number of shares reported by the Company to be outstanding
8
as of December 4, 2007 in the Company's Current Report on Form 8-K dated
December 5, 2007, the aggregate number of Shares beneficially owned by the
Reporting Persons as a result of those purchases represents in excess of 5% of
the outstanding Shares.
The Reporting Persons hold their Shares for investment. The Reporting
Persons have no commitment to make further purchases under the RWT Plan, except
for Shares acquired through the dividend reinvestment component of the RWT Plan,
but they reserve the right to increase or decrease their investment in the
Company depending on market conditions, circumstances affecting the Company
and/or extrinsic factors such as developments in the Company's industry and
the economic environment, and to discuss the Company and their investment in the
Shares with the directors and executive officers of the Company and third
parties, without amending the Schedule 13D except as required by applicable
rules.
Item 5. Interest in Securities of the Issuer.
(a, b) The Reporting Persons, in the aggregate, beneficially own 1,733,209
Shares, constituting approximately 5.4% of the outstanding Shares.
(c) During the past sixty (60) days, the following purchases of Shares
were made by the Reporting Persons, of which purchases those made on November
29, 2007 were made directly from the Company pursuant to the RWT Plan and the
balance were made in open market transactions. In addition the Reporting Persons
acquired 18,814 Shares through dividend reinvestment under the RWT Plan on
October 22, 2007 at the price determined by the Company under the RWT Plan.
Fund Trade Date Shares Bought Price
---- ---------- ------------- -----
D3 Family Fund LP 11/29/2007 141,699 28.88
D3 Family Bulldog Fund LP 11/29/2007 522,876 28.88
D3 Family Canadian Fund LP 11/29/2007 27,838 28.88
D3 Family Fund LP 11/02/2007 3,600 24.34
D3 Family Bulldog Fund LP 11/02/2007 14,800 24.34
D3 Family Canadian Fund LP 11/02/2007 1,600 24.34
D3 Family Bulldog Fund LP 10/22/2007 1,000 26.94
D3 Family Canadian Fund LP 10/22/2007 500 26.94
D3 Family Fund LP 10/19/2007 28,000 27.85
D3 Family Bulldog Fund LP 10/19/2007 103,000 27.85
D3 Family Canadian Fund LP 10/19/2007 4,900 27.85
D3 Family Fund LP 10/17/2007 12,370 27.89
D3 Family Bulldog Fund LP 10/17/2007 58,160 27.89
D3 Family Canadian Fund LP 10/17/2007 14,870 27.89
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer.
References made to Exhibit 1 to the Schedule 13D, which is incorporated by
reference in response to this Item (see Item 7).
9
Item 7. Material to be filed as Exhibits
Exhibit 1 to the Schedule 13D is the form of "Request for Waiver"
prescribed by the Company for those participants in the RWT Plan requesting
authorization from the Company to make optional cash payment under the RWT Plan
in excess of the $10,000 monthly maximum. A Request for Waiver in this form was
submitted by the respective D3 Family Fund, and approved by the Company, with
respect to the purchase of Shares by that D3 Family Fund pursuant to the RWT
Plan, as reported in Item 5(c).
Exhibit 2 to this Schedule 13D is the Joint Filing Agreement among the
Reporting Persons dated August 3, 2007 pursuant to which all of the Reporting
Persons have authorized the filing of Schedule 13D's and amendments thereto as a
group.
10
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, each of the
undersigned certifies that the information set forth in the Statement is true,
complete and correct.
D3 Family Fund, L.P., D3 Family Bulldog
Fund, L.P., and D3 Family Canadian Fund, L.P.
By: Nierenberg Investment Management
Company, Inc.
Its: General Partner
December 07, 2007 By: /s/ David Nierenberg
------------------ ------------------------------------
David Nierenberg, President
DIII Offshore Fund, L.P.
By: Nierenberg Investment Management
Offshore, Inc.
Its: General Partner
December 07, 2007 By: /s/ David Nierenberg
------------------ ------------------------------------
David Nierenberg, President
Nierenberg Investment Management
Company, Inc.
December 07, 2007 By: /s/ David Nierenberg
------------------ ------------------------------------
David Nierenberg, President
Nierenberg Investment Management
Offshore, Inc.
December 07, 2007 By: /s/ David Nierenberg
------------------ ------------------------------------
David Nierenberg, President
11