Recent Posts
An Anti-Hype Investor Explains Why AI is Real and Going Mainstream
May 17, 2023
Every couple of decades, a game-changing technology emerges that triggers a wave of innovations. Known as “general purpose technologies” by economists, they represent a major new enabling technology that has wide application across many use cases, deliver profound impact, generate substantial value across the economy, and ultimately affect all industries. Artificial intelligence, known as AI, is one such technology. We sat down with Tom...
Finding Pockets of Growth in a Struggling Economy: Quality Innovation Can Power Through a “Slowcession”
April 27, 2023
In the current slow-growth environment – both in the U.S. and globally -- there is the potential for an economic recession. Inflation and higher interest rates are pressuring consumers and businesses alike. Despite the risk of a recession, recent indicators suggest the underlying economy, at least in the U.S., is perhaps healthier than most acknowledge: Unemployment remains very low by historic standards (below 4%) and both corporate and...
Evolutionary Tree Featured as Citywire’s Boutique of the Month
January 18, 2023
We are excited to share that Evolutionary Tree’s story and unique approach to innovation investing were featured in Citywire, a provider of news and analysis on investment managers to advisors and institutional investors around the world. If you haven’t read the article, you can find it in Citywire’s November 2022 issue, where Evolutionary Tree is showcased as the “Boutique of the Month.”
Gratitude for My Mentor: 5 Points of Wisdom
December 20, 2022
The holidays are a great time to remember that there is so much to be grateful for, most especially for key people who influenced and supported us. For me, one of the most influential people in my life was my late mentor, Frank Sands Sr. Mr. Sands, or Frank as I knew him, was one of the greatest investors of our time and I had the great fortune to work closely with him for over 20 years, assisting him in building his firm, Sands Capital, from...
Evolutionary Tree’s Innovation-Focused Portfolio Ranks in the Top Ten of Its PSN Peer Universe
December 06, 2022
We are pleased to announce that our innovation-focused smid-cap growth portfolio, Darwin Emerging Innovators, delivered a top-ten performance relative to the PSN Mid Cap Growth Universe over the trailing three-year period. *See important information below about gross and net performance. Evolutionary Tree’s Darwin Emerging Innovators Portfolio ranked #7 out of 142 strategies in PSN’s Mid Cap Growth category. Despite a severe bear market,...
Growth Is the New Value
September 22, 2022
While many investors are currently focused on near-term macro headwinds, we believe innovation can still drive growth for leading innovators and remains critically important for long-term investors. Innovation is not going out of style or losing its importance. We believe many of the macro headwinds are mostly discounted in current valuations for quality innovative businesses, and we share examples below on the disconnect between the strength of...
Books That Inspire Us: A New Blog Series Featuring Our Team’s Favorite Reads
September 08, 2022
At Evolutionary Tree Capital Management, we get inspiration from a variety of sources. Books are some of the best sources, especially for long-term investors, as they often touch on timeless topics, help inform one’s investment approach, and provide perspective for investors. In our new blog series, Books That Inspire Us, we’ll be sharing our favorite book titles with you, along with why we like them, what we learned from them, and how they...
Technology: The Solution to Labor and Inflation Problems
August 18, 2022
The recent pullback in technology stocks has led some investors to surmise that growth at these companies has slowed dramatically or that many have experienced significant business issues. Worried about the impact of inflation on the economy and tech stock valuations, many investors have sold growth and tech stocks. Although we certainly acknowledge rising inflation, spurred on by a combination of reopening economies, labor shortages, and supply...
The 2020s are Not 1999: Today’s Unique Opportunity in Quality Software and Cloud Stocks
June 30, 2022
In today’s market environment—what has become a true bear market for growth and technology stocks—some investors believe software stocks remain overvalued. Hearing echoes of the dot-com era, they worry the current cloud era will meet a similar fate. As an asset manager with more than 25 years of experience and a deep understanding of innovations that are driving the evolution of industries and the economy, my observations lead me to conclude...
Quality Innovators: Resilient Fundamentals in the Face of Inflation
June 21, 2022
Last week, the Federal Reserve raised its benchmark short-term interest rate by three-quarters of a percentage point (75 basis points) – the largest rate increase in two decades and the third rate hike in under three months. These measures, which are widely anticipated to be followed by as many as four more rate hikes in 2022, are part of the Fed’s strategy to rein in record-high inflation. Several factors have driven inflation to its current...
