Since the start of the year, market-wide uncertainty has swelled to levels not seen for over a decade. Market fluctuations now have investors increasingly searching for non-correlated returns across all asset classes in an effort to diversify away risk brought on by this volatile market. Should investors turn to precious metals? Real estate? Emerging markets? There are many options when looking for non-correlated investments, but one asset in particular – intellectual property – has been slowly gaining prominence in mainstream institutional investing. With a market value well into the trillions, IP is one of the largest asset classes globally. In the US more than $1 trillion is invested in the creation of intangible assets annually. By exploiting IP-based investment strategies an alternative asset manager can deliver strong, differentiated investment returns and a diversified book while reducing correlation and leverage and increasing Sharpe ratio.
There are a number of IP-based investment strategies, all with varying volatility and risk/return profiles. These strategies range from long/short equity and debt strategies, IP direct lending, to LBOs. Largely, all IP-based strategies can be broken into three major groups:
- Liquid Special Situation Investments
- Illiquid Special Situation Investments
- Private Equity
To learn more about each of these strategies, download the Intellectual Property as a Non-Correlated Investment white paper here. To explore this topic and how it could influence your IP-strategy, please contact Ryan Zurek (+1 312 327 8006 | firstname.lastname@example.org) or Trevor Krajewski (+1 312 327 8181 | email@example.com).