Top 1.29% Performance Since 2023 Against 4,160 ETF's

The Equity Innovation Portfolio is built for long-term capital appreciation through concentrated exposure to the fastest-growing public companies in the global economy.

The portfolio is centered around innovation-driven sectors including artificial intelligence, cloud infrastructure, semiconductors, enterprise software, fintech, cybersecurity, and platform-based business models that benefit from scale and network effects.

This strategy owns 20–25 publicly traded companies, each selected based on projected revenue growth of 25%+, strong unit economics, and durable competitive advantage. The portfolio is highly concentrated and high-growth oriented. It does not use leverage, derivatives, private investments, or complex structures. Every position is liquid, transparent, and held with multi-year conviction.

Performance Since the 2023 Market Low

Since the market low in early 2023, the Equity Innovation Portfolio has delivered a +273.7% cumulative return, placing it in the top 1.29% of more than 4,160 non-leveraged ETFs across U.S. and Canadian exchanges. All performance figures are shown gross of fees.

Over this period, the portfolio has compounded at 55.25% annually, materially outperforming both the S&P 500 and the Nasdaq 100.

Calendar-Year Results (Gross of Fees)

2023: +98.4% | Top 1.25%
Following the 2022 bear market, the Innovation Portfolio was positioned ahead of the AI acceleration phase. As capital rotated back into growth equities, the portfolio delivered exceptional returns, dramatically outperforming broad market benchmarks and establishing the foundation for the subsequent compounding seen in 2024 and 2025.

2024: +39.3% | Top 3.22%
In 2024, the portfolio benefited from accelerating AI adoption across hyperscalers, enterprise software, and data infrastructure. While markets began the year at or near all-time highs, earnings growth and guidance across core holdings justified further upside. The strategy remained disciplined, focused on fundamentals rather than sentiment.

2025: +35.2% | Top 8.17%
2025 was a strong year for equity markets, particularly technology and AI-related stocks. Despite entering the year after two exceptional prior years, the Innovation Portfolio continued to compound at an above-market rate. Performance was driven by continued demand for AI compute, infrastructure, and enabling platforms, even as parts of the market experienced normal valuation digestion.

Understanding the Volatility

It is important to view these results in full context. The Innovation Portfolio experienced a -67.2% drawdown in 2022, one of the most severe environments for high-growth equities in modern market history. Many innovation-focused ETFs declined 70–80% during this period. That drawdown was painful, but it was not a result of leverage, balance sheet risk, or speculative exposure. It was a function of valuation compression across growth assets amid rapid rate increases.

What followed matters more.

That cumulative performance corresponds to a 55.25% compound annual growth rate over the period. Results of this magnitude are achieved by maintaining disciplined exposure to companies with sustained revenue growth, expanding margins, and durable competitive moats, and by remaining invested through periods of volatility that are inherent in innovation-driven equity strategies.

Portfolio Positioning Today

The Equity Innovation Portfolio remains heavily focused on AI enablers and platforms, including compute, data center infrastructure, semiconductors, software, and next-generation platforms with scalable economics.

Unlike prior years where many holdings entered the year at or near all-time highs, 2026 begins with several core positions trading 30–50% below prior peaks, despite improving fundamentals and accelerating revenue growth. Software and platform multiples remain well below 2021 levels, even as AI-driven productivity gains are beginning to show up in earnings and guidance..

This creates a notably asymmetric setup.

Outlook for 2026

Looking ahead, the backdrop for Innovation entering 2026 is materially different from the prior two years.

• AI demand has shifted from speculative to proven
• Earnings growth is driving results, not valuation expansion alone
• Software and platform valuations remain compressed
• Interest rate cuts are expected to ease financial conditions

We are not forecasting a repeat of 2023-level returns. However, the combination of discounted entry points, accelerating earnings, and improving macro conditions creates a setup where Innovation could reasonably outperform its recent averages.

What makes 2026 particularly compelling is the combination of discounted entry points and accelerating fundamentals. Unlike prior years where much of the portfolio entered the year fully valued, many holdings now offer meaningful upside if earnings growth continues and valuation multiples merely stabilize, let alone expand. Software and platform businesses appear especially well positioned as AI-driven productivity gains begin to show up more clearly in operating results. If earnings growth materializes as expected and macro conditions evolve favorably, we believe the Equity Innovation Portfolio is positioned to deliver returns comparable to, or potentially stronger than, those seen in 2024 and 2025, with performance driven primarily by fundamentals rather than speculative multiple expansion.

If earnings growth continues as expected and valuation multiples stabilize or expand modestly, the Equity Innovation Portfolio is positioned to again rank toward the top 1–3% of global equity strategies in 2026.

Closing Thoughts

The Equity Innovation Portfolio is built for long-term investors who are explicitly seeking substantial capital appreciation over time. This strategy focuses on the highest-growth companies in the public equity markets and requires the ability to stay invested through full market cycles, including periods of elevated volatility and drawdowns. It is designed for investors with the conviction to tolerate short-term discomfort in pursuit of exceptional long-term compounding, while minimizing unnecessary short-term capital gains and turnover. This portfolio is not for everyone, and it is intentionally unapologetic about that.

For clients who entered during or after the 2022 drawdown, the last three years have meaningfully accelerated long-term compounding. Even if future returns moderate, they will compound from a significantly higher base.

Our focus remains unchanged: disciplined portfolio construction, rigorous fundamental analysis, and long-term ownership of dominant, high-growth companies shaping the future of the global economy.