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...
Finding Innovation Beyond Just Technology
April 14, 2022
While technology can accelerate innovation, technology and innovation are not synonymous. Technology, such as new software, component, or hardware offerings (what some call “tech enablers”) is just one type of innovation employed by leading innovators to sustain growth. As innovation investors, we cast a wider net in our search for leading innovators. We look both within and beyond the technology sector for innovations in products, services,...
Why Boutiques Have an Advantage in the Age of Innovation
March 22, 2022
We are often asked the question: How do you describe the advantage that investment boutiques have over larger asset managers, and how does innovation investing play to these advantages? Let’s briefly define boutiques first and contrast them with larger firms.
Evolutionary Tree’s Innovation-Focused Strategies Rank in the Top Quartile of Their PSN Peer Universes
March 10, 2022
We are pleased to announce that our flagship innovation-focused portfolio, Beagle Leading Innovators, delivered top quartile performance relative to the PSN Large Cap Growth Universe since its inception over four years ago. *See important information below about gross and net performance.
Quality Innovators: Growing Rapidly and On Sale
February 25, 2022
We know it has been a volatile period in the markets over the past six and twelve months, particularly for growth and innovation-focused strategies. Given this backdrop, we provide an expanded blog post to discuss the drivers of the recent volatility and the reasons why we remain confident in our innovation-focused strategy. Despite the recent pullback in growth and innovation stocks, we believe the underlying portfolios are actually in great...
Evolutionary Tree’s Flagship Innovation-Focused Strategy Again Achieves Top Ranking Within PSN’s Large-Cap Growth Universe
December 14, 2021
For the third consecutive period, our innovation-focused portfolio, Beagle Leading Innovators, ranked #1 in the PSN Large Cap Growth Universe over the three-year period ending 9/30/2021. *See important information below about gross and net performance.
Big Innovation Has Impact: Driving Evolutionary Shifts and Creating Competitive Advantage
November 12, 2021
In last week’s blog post, The Power of Innovation to Drive Sustainable Growth and Returns, we shared evidence from various academic and consultant-driven studies supporting the notion that innovation drives sustainable growth and long-term returns. This week, we continue the conversation and provide examples of portfolio holdings we feel provide further evidence that big innovations can have a big impact on returns.
The Power of Innovation to Drive Sustainable Growth and Returns
November 05, 2021
At Evolutionary Tree Capital Management, we believe investors are wise to harness innovation to power their portfolios. Why? Simply put, innovation is what sustains growth for companies and drives stock returns over the long term. In the first of a two-part blog post highlighting the impact of big innovation, we share evidence from various academic and consultant-driven studies that support this theory and profile examples of companies with...
