Quant IP
We are very proud! After months of work, we published our joint White Paper with the quantitative Asset Manager O’Shaugnessy Asset Management. For everybody interested in patent data and innovation metrics and how they can help build outperforming stock portfolios, you can dive into 21 pages of must read here. For everybody else, I will sum it up in this post.
But as it turns out, innovation can not only improve stock selection in general but especially in a value universe. O’Shaugnessy did an intersection of innovation composite and their value composite (P/B, P/E, etc) and the results are striking. Buying the cheapest and at the same time most innovative stocks and shorting the most expensive, least innovative stocks would have given you a 12 percent return spread!