Unlocking Tomorrow's Disruptors: Virtus Zevenbergen Innovative Growth Fund's Q2 2025 Deep Dive

As we navigate the dynamic landscape of Q2 2025, the Virtus Zevenbergen Innovative Growth Stock Fund continues its dedicated mission: to unearth and invest in the pioneering companies shaping our future. This quarter proved to be a compelling period, marked by both strategic triumphs and the inherent volatility that accompanies true innovation.

Our unwavering focus remains on identifying businesses poised for exponential growth, those fundamentally disrupting their industries through groundbreaking technologies and forward-thinking business models.

In Q2, this commitment yielded promising results, with the fund demonstrating robust performance driven by key allocations in artificial intelligence, advanced healthcare solutions, and sustainable energy technologies. These sectors, while often subject to rapid market shifts, represent the fertile ground where long-term value is cultivated.

Specific contributors to our positive performance included visionary leaders in the AI infrastructure space, whose solutions are becoming indispensable across a myriad of industries.

Their strong earnings reports and increasing adoption rates underscored the accelerating demand for intelligent automation. Similarly, our investments in biotechnology firms at the forefront of gene-editing and personalized medicine showed significant progress, buoyed by positive clinical trial data and regulatory advancements, highlighting the transformative potential of these scientific breakthroughs.

However, the journey of innovation is rarely without its twists.

We observed some short-term headwinds for certain segments within the electric vehicle ecosystem and select software-as-a-service (SaaS) companies, primarily due to macro-economic concerns impacting consumer spending and enterprise budgets. These periods of recalibration are a natural part of the growth cycle and reinforce our disciplined approach to long-term investing, focusing on intrinsic value and sustainable competitive advantages rather than transient market sentiment.

Looking ahead, the Virtus Zevenbergen team remains acutely focused on the long-term horizon.

We believe the fundamental drivers of innovation — technological advancement, demographic shifts, and the global imperative for sustainability — are stronger than ever. Our rigorous research process continues to seek out companies with robust intellectual property, strong management teams, and clear pathways to scalable market penetration.

We anticipate continued opportunities in areas where digital transformation is still nascent, where sustainable solutions are becoming economically viable, and where scientific discovery is pushing the boundaries of human capability.

We are confident in our strategy to invest in companies that are not just growing, but fundamentally evolving their respective markets.

While market fluctuations are inevitable, our conviction in the disruptive power of innovation and the carefully selected companies within our portfolio remains steadfast. We thank our investors for their continued trust as we collaboratively chart a course towards future growth and enduring value.