Morgan Stanley-Thematics Venture Vision The Rule of 40 - US-109264313

MGlobalFoundationThematicsVentureVision:TheRuleof40-USMorganStanley&Co.Internationalplc+EdwardStanleyEquityStrategistEdward.Stanley@morganstanley.com+44207425-0840MatiasOvrumEquityStrategistMatias.Ovrum@morganstanley.com+44207425-9902OurVentureVisionweeklieslookat(1)early-stagecross-themefundingpatterns;(2)relativevaluationsbetweenthemes;(3)publicversusprivatevaluations;and(4)theresultinganomalieswithincertainthemes.Pleaseletusknowifyouwouldlikeourexceldatabaseof>55,000VCdealscategorisedbytheme,country,valueanddate.Wealsosendthisfileasaweeklydistributionifyouwouldliketoreceiveitregularly.Don'tunderestimatethepowerofsimplicity.Ventureinvestorsswearbythe"Ruleof40".Meanwhile,publicmarketinvestorsaregenerallyunawareofit.Thisglobalmini-seriesaimstocastalightonitsimportanceforactivemanagers.Since2010,theS&P500hasdelivereda3.9xreturn.ThelargecapRuleof40stocksintheindexdelivereda14.5xreturn(equal-weight).MidcapRuleof40nameshavedelivereda6xreturnoverthesameperiod.Exhibit1:Performanceofequal-weightRuleof40stocksinpublicmarketsvsS&P50002004006008001000120014001600Jan10May10Sep10Jan11May11Sep11Jan12May12Sep12Jan13May13Sep13Jan14May14Sep14Jan15May15Sep15Jan16May16Sep16Jan17May17Sep17Jan18May18Sep18Jan19May19Sep19Jan20May20Sep20Jan21May21Sep21Jan22May22Sep22Jan23May23Sep23Jan24May24Ruleof40LargeCapRuleof40MidCapS&P500Sourc...