Stock and cash portfolio development system

• US 5,132,899 A
• Filed: 10/16/1989
• Issued: 07/21/1992
• Est. Priority Date: 10/16/1989
• Status: Expired due to Term

• Current Assignee: Philip J. Fox
• Original Assignee: Philip J. Fox
• Inventors: Fox, Philip J.
• Primary Examiner(s): Shaw, Dale M.
• Assistant Examiner(s): BODENDORF, ANDREW
• Application Number:
  US07/421,652
• Time in Patent Office: 1,009 Days
• Field of Search: 364/408, 364/400, 364/401, 364/900
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

The present invention combines data gathering and processing methodology with computer apparatus to produce a system whereby a list of stocks and a cash position is generated and purchased for investment and operating accounts. Specifically, the system integrates three areas of data: investment performance for investment managers (the investment manager database); federal Securities Exchange Commission (SEC) reports filed quarterly by investment managers (the government report database); and financial characteristics for a large number of stocks (the stock database). Various screens and criteria are applied to the three data areas. The investment managers in the investment manager database are screened to find investment managers with top performances who meet a series of other criteria. The government reports are screened based upon the largest stock holdings for the investment managers chosen in the first step. The stock database financial characteristics are applied against the stocks from the government reports.

Claims

1. A data processing system for producing with a computer a stock and cash portfolio report based upon the performance of major United States institutional investment managers and their stock and cash holdings including:

first data means for entering and storing in the computer an investment manager database containing first data on the investment managers;

first manager subset means responsive to the first data for selectively generating a first investment manager subset of investment managers from the investment manager data based on predetermined criteria; and

second manager subset means responsive to the first data for selectively generating a second investment manager subset of investment managers from the first investment manager subset based on performance according to each investment manager'"'"'s rate of return.

2. The system of claim 1 wherein:

the predetermined criteria include size of managed assets, years in business, and investment style of the investment managers.

3. The system of claim 1 further including:

second data means for entering and storing in the computer a government reports database containing second data from reports filed with the government by each of the investment managers of the investment manager database;

list means responsive to the second data for selectively generating a list of stock holdings for each of the investment managers of the second investment manager subset, the contents of the stock holdings lists arranged top to bottom in descending order of market value; and

stock holdings subset means responsive to the second data for selectively generating a stock holdings subset of stock holdings based on selecting a predetermined number of investment manager'"'"'s stocks taken sequentially from the top of the stock holdings list of each of the investment managers of the second investment manager subset.

4. The system of claim 3, further including:

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

beta means responsive to the third data for determining whether the average beta value of the stock holdings subset is greater than a predetermined beta value; and

first updating means for updating the stock holdings subset, when the average beta value of the stock holdings subset is greater than the predetermined beta value, until the average beta value of the stock holdings subset is not greater than the predetermined beta value.

5. The system of claim 3, further including:

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

standard capitalization means responsive to the third data for determining the average capitalization of a standard stock list of the stock database;

subset capitalization means responsive to the third data for determining the average capitalization of the stock holdings subset and for comparing the average capitalization of the stock holdings subset with the average capitalization of the standard stock list; and

second updating means for updating the stock holdings subset, when the average capitalization of the stock holdings subset is less than the average capitalization of the standard stock list, until the average capitalization of the stock holdings subset is not less than the average capitalization of the standard stock list.

6. The system of claim 3, further including:

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

standard industry means responsive to the third data for sorting the stock database according to industry and for determining the percentage representation of industries on a standard stock list of the stock database;

subset industry means responsive to the third data for sorting the stock holdings subset according to industry and for comparing the percentage representation of industries in the stock holdings subset with the percentage representation of industries on the standard stock list to determine if the percentages deviate beyond a predetermined limit; and

third updating means for updating the stock holdings subset, when the percentages deviate beyond the preset limit, until the percentages do not deviate beyond the preset limit.

7. The system of claim 4, further including:

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

standard capitalization means responsive to the third data for determining the average capitalization of a standard stock list of the stock database;

subset capitalization means responsive to the third data for determining the average capitalization of the stock holdings subset and for comparing the average capitalization of the stock holdings subset with the average capitalization of the standard stock list; and

second updating means for updating the stock holdings subset, when the average capitalization of the stock holdings subset is less than the average capitalization of the standard stock list, until the average capitalization of the stock holdings subset is not less than the average capitalization of the standard stock list.

8. The system of claim 7, further including:

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

standard industry means responsive to the third data for sorting the stock database according to industry and for determining the percentage representation of industries on the standard stock list;

subset industry means responsive to the third data for sorting the stock holdings subset according to industry and for comparing the percentage representation of industries in the stock holdings subset with the percentage representation of industries on the standard stock list to determine if the percentages deviate beyond a predetermined limit; and

third updating means for updating the stock holdings subset, when the percentages deviate beyond the preset limit, until the percentages do not deviate beyond the preset limit.

9. The system of claim 8, further including:

cash position means responsive to the first data for determining the average cash position of the investment managers of the second investment manager subset; and

output means for outputing the stock and cash portfolio report from the computer based on the stock holdings subset and the average cash position of the investment managers of the second investment manager subset.

10. The system of claim 9, wherein:

the standard stock list is the Standard and Poors 500 stock list.

11. A data processing system for producing with a computer a stock and cash portfolio report based upon the performance of major United States institutional investment managers and their stock and cash holdings including:

first data means for entering and storing in the computer an investment manager database containing first data on the investment managers;

first manager subset means responsive to the first data for selectively generating a first investment manager subset of investment managers from the investment manager database based on predetermined criteria;

second manager subset means responsive to the first data for selectively generating a second investment manager subset of investment managers from the first investment manager subset based on performance according to each investment managers'"'"' rate of return;

second data means for entering and storing in the computer a government reports database containing second data from reports filed with the government by each of the investment managers of the investment manager database;

list means responsive to the second data for selectively generating a list of stock holdings for each of the investment managers of the second investment manager subset, the contents of the stock holdings lists arranged top to bottom in descending order of market value;

stock holdings subset means responsive to the second data for selectively generating a stock holdings subset of stock holdings based on selecting a predetermined number of investment managers'"'"' stocks taken sequentially from the top of the stock holdings list of the second investment manager subset;

third data means for entering and storing in the computer a stock database containing third data relating to a plurality of financial characteristics for a plurality of traded stocks;

beta means responsive to the third data for determining whether the average beta value of the stock holdings subset is greater than 1.0;

first updating means for updating the stock holdings subset, when the average beta value of the stock holdings subset is greater than 1.0, until the average beta value of the stock holdings subset is not greater than 1.0;

standard capitalization means responsive to the third data for determining the average capitalization of a standard stock list of the stock database;

subset capitalization means responsive to the third data for determining the average capitalization of the stock holdings subset and for comparing the average capitalization of the stock holdings subset with the average capitalization of a standard stock list;

second updating means for updating the stock holdings subset, when the average capitalization of the stock holdings subset is less than the average capitalization of the standard stock list, until the average capitalization of the stock holdings subset is not less than the average capitalization of the standard stock list;

standard industry means responsive to the third data for sorting the stock database according to industry and for determining the percentage representation of industries on the standard stock list;

subset industry means responsive to the third data for sorting the stock holdings subset according to industry and for comparing the percentage representation of industries in the stock holdings subset with the percentage representation of industries on the standard stock list to determine if the percentages deviate beyond a predetermined limit; and

third updating means for updating the stock holdings subset, when the percentages deviate beyond the preset limit, until the percentages do not deviate beyond the preset limit.

12. The system of claim 11, further including:

cash position means responsive to the first data for determining the average cash position of the investment managers of the second investment manager subset; and

output means for outputing the stock and cash portfolio report from the computer based on the stock holdings subset and the average cash position of the investment managers of the second investment manager subset.

13. The system of claim 12, wherein:

the standard stock list is the Standard and Poors 500 stock list.