EXAMPLES
The following examples are simulated backtesting with either certain portfolios (e.g., funds, where the composition is public) or (equal-weighted) indices. All the examples have a certain IP filter in use, according to the thesis “Companies with big and growing patent portfolios in value have a better future perspective than those without or with shrinking values.” Here, various intellectual property (IP) rights, namely patents and utility models, as well as specific rules and thresholds were applied using patent portfolio values and qualitative and quantitative patent indicators. The portfolios thus obtained are adjusted on a quarterly or semi-annual basis
In all cases that we and our customers have investigated so far, the IP stocks were leading to significant outperformance.
01
Indices
Indices/portfolios consisting of shares with patents show a greater performance
Patent MSCI World portfolio vs. MSCI World portfolio
Patent MSCI World portfolio = Equally weighted MSCI World portfolio with stocks with a patent value >= 10 mio Euro
MSCI World portfolio = Equally weighted MSCI World portfolio (Benchmark)
02
Portfolio construction
An investment strategy with the use of qualitative and quantitative patent indicators leads to an alpha for virtually all indices. These selected patent portfolios show an impressive outperformance compared to the Benchmark.
Investment strategy with Patent MSCI World portfolio
vs
MSCI World portfolio
Performance Analysis
The performance was examined using the French Fama
5 factor model for a resulting alpha that cannot be explained by these factors.
03
Enhancing Sustainability Indices Performance
Improvement of existing Indices/Funds using the example of MSCI World ESG Leaders Index
Based on the MSCI World ESG Leaders Index, a portfolio of patent stocks is selected using qualitative and quantitative patent indicators (Patent MSCI World ESG Leaders portfolio)
04
Customized Solutions
Whether the improvement of an existing product, the implementation of a new fund idea or simply a test data set to try out for yourself, please contact us (info@ipr-strategies.com). We are happy to help
