1790’s principals are at the forefront of research into the links between intellectual property and financial performance. They have authored numerous peer-reviewed publications on the subject, and are the inventors of two breakthrough patents linking intellectual property and stock market performance.
Building on this research, we have worked with a variety of investment institutions, helping them to evaluate the technological strengths and weaknesses of their investment targets.
Project: Hedge Fund (Wireless Communications)
Our client, a multi-billion dollar hedge fund, was interested in taking a short position in a company claiming to have a new generation of wireless technology. The company had a very high market cap, even though its technology had yet to generate significant sales.
Our research revealed that the company had little scientific pedigree, and its inventors had limited backgrounds in wireless technology. We further revealed that the technology developed by the company was attracting little interest from the major wireless companies, and remained peripheral to the industry after a number of years.
We were therefore able to recommend that our client proceed with its plan to take a short position in the company, given its lack of technological potential. In the three months following our report, the stock price of the company fell by almost half.
Project: Institutional Money Manger (Biotechnology)
A very large institutional money manager was interested in investing in a biotechnology company. The company had an impressive list of strategic relationships, but our client wanted to understand the quality of the technology it was developing.
Our analysis revealed that the company was an emerging force in the biotechnology industry. Its patent portfolio was growing rapidly, and its patents were gaining interest from some very large healthcare companies. Its impact on recent patents was particularly strong, showing its role in cutting edge technological developments.
We advised our client that the company was an attractive proposition from a technological viewpoint. In the six months following our recommendation, the company’s stock price increased by over one-third.
Project: Private Equity (Automotive Technology)
Our client, a private equity fund, was interested in taking a large stake in a company that had developed an improved automotive component. The company had put together extensive business plans and financial projections, but our client required an objective analysis of the quality of the underlying technology.
Our research revealed that the technology developed by our client’s target was an updated version of a technology previously developed by a major car company. The existing patents related to the technology were very broad, and were soon to expire, so the main concepts behind the technology would enter the public domain. Also, the major car companies appeared to have moved beyond the technology suggested by our client’s target company. As such, we were able to advise our client not to proceed with its proposed investment. To our knowledge, the company has yet to attract significant investment.