UK-listed groups engaged in intellectual property (IP) commercialisation haven't proved popular with investors in recent months. In fact, Allied Minds (ALM), IP Group (IPO) and Touchstone Innovations (IVO) have underperformed the FTSE Biotech and Pharmaceuticals index so far this year (see chart below). As investors in early-stage technology and healthcare companies, these groups are only as good as management's ability to separate those with commercial potential from the non-starters. Just one or two runaway successes could rapidly propel the fair value of an investment company's portfolio. Conversely, a few dud investments can take a chunk out of it.
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