Insights on Innovations, Evolutionary Shifts, and Secular Trends

The Importance of Identifying Emerging Innovators
November 11, 2020
Whether it’s video streaming supplanting cable TV or e-commerce taking share from brick-and-mortar stores, most investors realize innovation is rapidly creating winners and losers across today’s economy. However, navigating this environment and keeping up with the pace of innovation can be extremely challenging. This issue of determining who the leading innovators are, as well as avoiding the companies being disrupted, is as critical as ever. We...
The Power of Culture in the Age of Innovation
October 29, 2020
We all know “great companies” when we interact with them as consumers. They feel different. They almost seem like they have some special power or special sauce that leads to great experiences, strong execution, and high customer satisfaction. At Evolutionary Tree, we believe that this specialness comes from companies having built a unique and effective culture. Why should investors care about culture?
We’re Still in the Early Innings of the Shift to Cloud Computing and SaaS
October 09, 2020
At Evolutionary Tree a key part of our investment process is identifying what we believe are the most important secular trends, or as we call them, evolutionary shifts, happening across the economy. Companies benefiting from multi-year secular trends have a higher probability of sustaining growth over time and may grow at an above-average rate for longer than short-term focused investors might expect. Our investment team systematically tracks...
Evolutionary Tree Strategies Win PSN Top Guns Awards for Q2 2020
September 30, 2020
We are truly honored to receive not just one, but several awards for our two flagship innovation-focused portfolios: Beagle Leading Innovators and Humboldt Global Innovators. The awards are a result of our investment team's dedication to identifying and understanding attractive investment opportunities being created by innovations driving structural change across the global economy.
Navigating a Bifurcating Economy: Leaning Into the Digital Economy, Which is Healthy
September 25, 2020
While the economy is on a road to recovery, we believe there is a seismic shift taking place as a result of the pandemic. We believe the pandemic is creating a “bifurcated economy,” widening the gap between the physical-based economy and the digital economy (see illustration below). In the physical economy (think retailers and small, local businesses), the environment is a near depression, with many businesses at risk of shrinking or going out...
Biotech is Just Getting Started as a Growth Industry
September 02, 2020
After 35 years of development, the biotechnology industry has finally refined many of today’s biotech tools to work effectively and safely for patients. In our opinion, the biotech industry is finally seeing multiple new technologies enter what we call the “zone of readiness,” where the underlying technologies are both technically and economically feasible.  In short, they are ready to be applied to a growing number of diseases, both rare and...
The Rise of Intellectual Capital and the Shift to Intangibles
August 27, 2020
We live in the Age of Innovation. This era is built increasingly on intellectual capital as the value of ideas and concepts displaces the value of land (as seen in the age of agriculture) or even capital (in the industrial age). Others call our current era the Digital Age, but the result is the same: a growing array of innovations across all industries that increases the pace of change and the evolution of technologies, products and services,...
Leading Innovators are Less Risky than Blue-Chippers
August 14, 2020
In the Age of Innovation, we need to shift our thinking about where risk lies. Increasingly, the leading innovators are less risky as businesses (and investments) than non-innovators. Traditionally, it was the defensive so-called “stable blue chips” that offered lower risk and solid returns. However, with the pervasive rise of digitization and related technology-enabled business models, industry after industry is undergoing massive change. Many...
[Vlog] Our Innovation-Focused Research Process
June 24, 2020
In this eight-minute video segment, taken from a recent presentation for the CFA Society of Columbus, Evolutionary Tree President and Portfolio Manager Thomas Ricketts, CFA walks us through the firm’s differentiated innovation-focused investment process. Topics covered include: How our investment process revolves around a concept we describe as the Innovation Flywheel Identifying innovative companies positioned to benefit from secular trends Our...
How Innovation-Focused Strategies May Provide Both Offense and Defense
June 19, 2020
If you missed our recent press release, we are proud to have been awarded one of PSN’s Top Guns within the large cap growth manager universe for 1Q20. The Russell 1000 Growth Index fell -14.10% during the worst quarter for stocks since 1987. In comparison, our strategy was only down -5.22%, outperforming the Index by 8.88ppts.

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