Ocean Tomo Asset Management (OTAM) has developed a family of investment products based on its proprietary Intellectual Property valuation methodologies. While IP alpha is common to all strategies, OTAM’s strategies represent a spectrum of risk-adjusted returns, liquidities, correlations, and holding periods. All quantitative products employ the Ocean Tomo Ratings™ system, which has valued every patent issued in the U.S. since 1977, whereas qualitative products utilize the 23 years of IP domain knowledge present in Ocean Tomo’s team of investment, valuation, analytics and consulting experts.
The Ocean Tomo 300® Patent Index (NYSE Euronext: OTPAT) is the first intellectual property index. It represents a diversified portfolio of the 300 publicly traded companies in the U.S. with the highest Innovation Ratios (patent value over book value, where patent value is assessed by the Ocean Tomo Ratings™ system). Learn more.
OTAM's quantitative IP investment program has the capability to create an IP-based absolute return or benchmarked fund for any size, style, and sector criteria specified. In partnership with IPXI, Ocean Tomo has created IP-enhanced indexes for S&P 500 and 1500, NASDAQ, and the Wilderhill Clean Energy Index. In each case, OTAM's enhanced index products outperform their benchmark indexes with greater information ratio. Learn more.
Ocean Tomo's intra-sector market neutral strategy has been trading since October 2007. Since its inception, the fund has generated a positive gross return of 7% with less than 4% volatility. In 2008, while the strategy generated a positive gross return of 3.26%, the HFR Market Neutral Index was down 5.92%, the DJ Market Neutral Index was down 8.33%, the S&P 500 was down 38.5%, and hedge funds were generally down 18%. Each of these generated market measures with significantly higher volatility. Learn more.
OTAM's Special Situations team invests in unique arbitrage opportunities as they relate to qualitative IP valuation. Learn more.
Each of the investment products described above can be bundled into structured products. Doing so provides investors with all of the benefits of structured products (e.g. principal protection) and IP investments (e.g. unique alpha and low correlation).