Deep company insights are the main USP for all kinds of investment strategies.
Intellectual property assets such as patents indicate the innovation investment and ability to offer competitive products in the future. The value trend and quality of those assets further indicates a high probability for future market success with these inventions.
This is also an indicator for the value potential of a company.
Getting this intellectual property (IP) valued and putting this knowledge to use in an investment strategy is our focus.
How many company assets are visible?
Patents are the missing factor for all kinds of quantitative research and analysis.
For an ever-increasing number of companies, their IP is the essence of the business.
Business information inside the companys balance sheets shows revenue, size, balance total, market cap, profit, etc. - but not their patents - a major hidden value.
The value of a (technical or, natural scientific) company nowadays is determined by up to 84% by intangible assets, for example patents and utility models.
These assets are mostly unknown or very difficult to gather.
Companies with good patents have a much higher value than known from their balance, therefore they have a value potential for the future.
Backtesting shows a direct correlation between the underlying stock price and monetary patent value. All backtesting leads to significant outperformance when the portfolio is chosen using patent-value indicators.
Our research focus is to determine new factors to enhance investment strategies based on the patent-value indicator.