EVGGF - Protean Funds - Evolution: Has Kept Sliding But Has The Potential To Be Excellent
2024-06-12 10:00:00 ET
Summary
- Evolution is a Swedish online gambling supplier with strong financial performance, but domestic funds avoid it due to moral concerns.
- The company trades at a low valuation, grows organically, and has a strong balance sheet, benefiting from the global trend of offline to online migration.
- Despite recent underperformance, the long-term outlook for Evolution remains positive, with potential for continued growth and excellence.
The following segment was excerpted from this fund letter.
Evolution ( OTCPK:EVVTY )
During May we initiated a position in Swedish online gambling supplier Evolution. Similar to the situation in Swedish Match (RIP), domestic funds shun it because gambling is considered a vice we should be without. This moral frowning is causing the valuation to be out of whack. The company continues to post unbelievable results, as it has done continuously for the past decade, but there isn't a single domestic fund with an overweight position in the stock (but us)....
Protean Funds - Evolution: Has Kept Sliding, But Has The Potential To Be Excellent