Place stock in a medium saucepan. Bring to a simmer (do not boil). Keep warm over low-medium heat.
Heat a large skillet over medium heat. Add olive oil and butter to pan; swirl to coat. Add shallots; cook 1-2 minutes minutes. Stir in rice, and cook for 1-2 minutes, stirring constantly. Increase heat to medium and add 1/2 cup wine; cook about 2 minutes or until liquid is nearly absorbed, stirring constantly. Continue by adding stock, 1/2 cup at a time, stirring constantly until each portion of stock is absorbed before adding the next. Add the roasted red peppers and 1/4 cup pesto to the rice with last portion of stock is added. Stir to break apart the peppers and evenly cook in the risotto. Remove from heat and stir in the cheese. Season with salt and pepper if needed. Drizzles each portion with remaining pesto and serve immediately.