System, method and computer readable medium containing instructions for evaluating and disseminating investor performance information

• US 20060161492A1
• Filed: 03/20/2006
• Published: 07/20/2006
• Est. Priority Date: 06/18/1999
• Status: Active Grant

• Current Assignee: Refinitiv US Organization, LLC (Refinitiv US Holdings, Inc.)
• Original Assignee: Thomson Financial Limited (The Woodbridge Co. Ltd.)
• Inventors: Columbus, Craig E., Bettis, J. Carr
• Granted Patent: US 7,788,156 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

An investor'"'"'s performance is evaluated by utilizing information pertaining to at least one transaction made by the investor, such as an individual or entity, involving at least one investment. This evaluation includes determining a performance score indicative of the investor'"'"'s performance relative to other investors. The performance score is determined at least in part by considering an average historical performance of the investment, following the transaction. In addition, the performance score is also determined by a historical consistency of the investor'"'"'s performances with respect to transactions involving the investment, and the number of transactions made by the investor. Then, the performance score of the investor may be compared against the performance scores of other investors. Advantageously, this performance score may be used to produce a ranked list of investors in a particular industry, as well as with investors in different industries.

Claims

1. A method of evaluating an investor'"'"'s performance by utilizing information pertaining to at least one transaction made by the investor involving at least one investment, said method comprising the steps of:

determining a performance score indicative of the investor'"'"'s performance relative to other investors, said performance score determined at least in part by considering an average historical performance of the at least one investment following the at least one transaction, a historical consistency of the investor'"'"'s performances with respect to transactions involving the at least one investment, and the number of transactions made by the investor; and

comparing the performance score of the investor against performance scores of other investors.

2. The method of claim 1, wherein the average historical performance of the at least one investment is considered over a first period of time and a second period of time.

3. The method of claim 2, wherein said first period of time is approximately three 20 months and said second period of time is approximately six months.

4. The method of claim 1, wherein said performance score is determined at least in part utilizing confidential data.

5. The method of claim 1, wherein the performance score increases with the number of beneficial transactions.

6. The method of claim 1, wherein the performance score increases when a rate of return of the at least one investment increases and the transaction is a buy transaction, or when a rate of return of the at least one investment decreases and the transaction is a sell transaction.

7. The method of claim 1, wherein the performance score decreases when a rate of return of the at least one investment decreases and the transaction is a buy transaction, or when a rate of return of the at least one investment increases and the transaction is a sell transaction.

8. The method of claim 1, wherein said determining a performance score comprises:

determining a first average return value (ave. return,) and a second average return value (ave. return2) for the at least one transaction, said first and said second average return values corresponding respectively to an average rate of return on the at least one transaction involving the investment for a first period of time (time,) and an average rate of return on the at least one transaction involving the investment for a second period of time (time2);

calculating, in absolute terms, a first t-stat value (t-stat,) for said first average return value and a second t-stat value (t-stat2) for said second average return value, said first and second t-stat values calculated by utilizing said first and second average return values, a first standard deviation (SD,) and a second standard deviation (SD2), a total number of transactions (decisions,) occurring more than or equal to the first period of time before said evaluating, and a total number of transactions (decisions2) occurring more than or equal to the second period of time before said evaluating;

calculating a first degree of freedom (DF,) for said first average return value and a second degree of freedom (DF2) for said second average return value;

determining a first probability (prob,) for said first period of time by utilizing said first t-stat value and said first degree of freedom, and a second probability (probe) for said second period of time by utilizing said second t-stat value and said second degree of freedom;

generating a conditional raw score (cond. raw score) for the investor by utilizing said first and second probabilities;

generating an adjustment to the conditional raw score (adjustment) by utilizing said total number of transactions occurring more than or equal to the first period of time before said evaluating, and said total number of transactions occurring more than or equal to the second period of time before said evaluating; and

generating a raw score (raw score) indicative of said investor'"'"'s performance by adding said adjustment to said conditional raw score.

9. The method of claim 8, wherein if SD 1=0, then raw score=0 otherwise wherein if SD2, =0, then raw score=0 otherwise

10. The method of claim 8, wherein said probabilities are determined according to a predetermined look-up table using actual calculated values of:

DF1, DF2. t-state, and tstat2, unless;

DF, >

100, in which case DF1 is set to 100;

DF2>

100, in which case DF2 is set to 100;

t-state>

20, in which case t-state is set to 20;

t-state>

20, in which case t-stat2 is set to 20;

t-state<

0.01, in which case prob, is set to 0;

or t-state<

0.01, in which case probe is set to 0.

11. The method of claim 8, wherein

12. The method of claim 8, wherein

13. The method of claim 8, wherein raw score=adjustment+cond. raw score.

14. The method of claim 1, wherein the at least one transaction comprises a buy transaction, said method thereby providing an evaluation of the investor'"'"'s buy performance.

15. The method of claim 1, wherein the at least one transaction comprises a sell transaction, said method thereby providing an evaluation of the investor'"'"'s sell performance.

16. The method of claim 1, further comprising posting said measure of performance on a computer system accessible via one or more data communications networks by other remotely located computer systems.

17. The method of claim 1, further comprising posting or providing access to investor and investment information on a computer system accessible via one or more data communications networks by other remotely located computer systems.

18. The method of claim 1, wherein said investor is at least one of a corporate insider, an individual, a joint venture, a corporation, a trust, a partnership, or other investment entity, and the like.

19. The method of claim 1, wherein the investment is at least one of a security, bond, currency, commodity, paper, precious metal, mineral, mutual fund, natural resource, or the like.

20. The method of claim 1, wherein said investor is listed in a database containing substantially all entities filing insider documents with the Securities and Exchange Commission.

21. A system for evaluating an investor'"'"'s performance by utilizing information pertaining to at least one transaction made by the investor involving at least one investment comprising:

means for determining a performance score indicative of the investor'"'"'s performance relative to other investors, said performance score determined at least in part by considering an average historical performance of the at least one investment following the at least one transaction, a historical consistency of the investor'"'"'s performances with respect to transactions involving the at least one investment, and the number of transactions made by the investor; and

means for comparing the performance score of the investor against performance scores of other investors.

22. A method for evaluating an investor'"'"'s performance by utilizing information pertaining to at least one transaction made by the investor involving at least one 20 investment comprising:

a step for determining a performance score indicative of the investor'"'"'s performance relative to other investors, said performance score determined at least in part by considering an average historical performance of the at least one investment following the at least one transaction, a historical consistency of the investor'"'"'s performances with respect to transactions involving the at least one investment, and the number of transactions made by the investor; and

a step for comparing the performance score of the investor against performance scores of other investors.