Insights on Innovations, Evolutionary Shifts, and Secular Trends

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.
[Vlog] Why is an Evolutionary Lens So Important for Investors?
June 11, 2020
In an economy increasingly impacted by innovation, technological change, and evolutionary shifts, industries are facing more periods of dis-equilibrium or disruption relative to periods of equilibrium or stability than in the past. And, in the process more and more industries are being transformed. Interested in viewing this article as a video presentation (8 min)?  Click here. Importance of Evolutionary Economics and Technical Change to...
Press Release
June 11, 2020
Evolutionary Tree Flagship Strategy Wins PSN Top Guns Award - Former Portfolio Manager from Sands Capital Ranks #2 Amongst Peers During Q1 2020 - Alexandria, VA – (June 11, 2020) – Evolutionary Tree Capital Management is pleased to announce the Beagle Leading Innovators strategy has been awarded a PSN Top Guns distinction by Informa Financial Intelligence’s PSN manager database for performance during the volatile first quarter of 2020. The...
Innovation Investing and Capturing Value Creation on the S-Curve
June 03, 2020
Over my 25-year investment career investing in sustainable growth companies, experience has taught me that the core driver—the root cause—of value creation across the economy is innovation.  While most investors acknowledge the importance of innovation in a general sense, it is, in my opinion, more profound than most appreciate for a few key reasons: Innovation is what creates new market-leading products, services, and business models, which are...
Navigating the Bear Market of 2020
May 15, 2020
While the recent market selloff and underlying factors affecting the economy have been unique, history reminds us that certain principles are worth keeping in mind during any bear market. Below is an excerpt of the letter we sent to our clients and partners on March 20, 2020, within days of the first quarter market bottom. This excerpt includes only two of the eight viewpoints intended to help our clients navigate an economy in turmoil. The full...
Historical Growth vs. Root Causes of Growth, We Focus on the Latter
May 01, 2020
Past growth companies may not be tomorrow’s growers, and differentiating between the two could have a big impact on investment returns. A common mistake of many growth equity strategies is that portfolio managers are often too focused on historical growth, explained Evolutionary Tree CIO Thomas Ricketts during a recent market update call. He believes investors are better served with portfolios that focus specifically on innovation, which is the...

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