Insights on Innovations, Evolutionary Shifts, and Secular Trends

[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...
The Great Digital Acceleration: Recessions Often Accelerate Secular Trends and Innovation Adoption
April 23, 2020
Evolutionary Tree recently recorded an audio market update with firm president and CIO, Thomas Ricketts, to discuss the current bear market and provide long-term and straightforward perspective. As Mr. Ricketts explains, the key is to identify the investable secular growth trends poised to continue pushing forward regardless of the economic backdrop. A potential recession won’t stop growth for every company. For leading innovators driving...
The Case for Evolutionary Investing
April 01, 2020
Evolutionary Investing is an investment approach that takes advantage of an evolving economy.  This unique approach positions investors to benefit from leading innovators driving structural or evolutionary shifts across a growing number of industries, while seeking to minimize the negative impacts of disruption.  We believe this is the next generation of concentrated growth investing. We live in the Age of Innovation where the pace of innovation...
Are Secular Trends and Evolutionary Shifts Powering Your Portfolio?
March 24, 2020
Market volatility—the short-term gyrations of risk-on to risk-off and back—doesn’t have to be an investor’s focus. Investors can liberate themselves from the potentially paralyzing impact of day-to-day volatility by re-focusing on the true drivers of long-term investment returns. What are those long-term drivers? At Evolutionary Tree, we talk a lot about the importance of innovation as a long-term driver of value creation. There is another major...

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