Security analyst estimates performance viewing system and method

• US 6,681,211 B1
• Filed: 05/24/2000
• Issued: 01/20/2004
• Est. Priority Date: 04/24/1998
• Status: Expired due to Term

• Current Assignee: Refinitiv US Organization, LLC (Refinitiv US Holdings, Inc.)
• Original Assignee: StarMine Corp. (The Woodbridge Co. Ltd.)
• Inventors: Gatto, Joseph G.
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): Alvarez, Raquel
• Application Number:
  US09/577,317
• Time in Patent Office: 1,336 Days
• Field of Search: 705/1, 705/35, 705/36, 705/37
• US Class Current: 705/36.00R
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for measuring, analyzing, and tracking the past performance of security analysts'"'"' earnings estimates and recommendations. The present invention provides a database of historical data relating to security analyst earnings estimate predictions wherein a historical model enables users to view the historical data as a time series of earnings estimates for each analyst selected, for a selected period of time, for a predetermined earnings event. Users may define a model to automatically create enhanced composite estimates wherein an improved prediction of the quantity being estimated, such as company earnings, revenue or cash flow is obtained. Users may view performance screens and historical performance data for a particular contributor or various contributors for a given security. Other views may be available.

Claims

1. A graphical user interface for use with a computer-implemented system for creating a model to generate an enhanced composite prediction relating to a security based on current predictions provided by a plurality of contributors and rules or exclusion factors, wherein at least one of the rules or exclusion factors relates to historical information relating to a contributor, wherein the model comprises user-defined rules that are applied to some or all of the contributors'"'"' predictions to create the enhanced composite prediction, the graphical user interface comprising:

means for enabling a user to specify rules or exclusion factors by which to exclude one or more contributors'"'"' predictions;

means for enabling a user to specify rules or factors by which to assign a weight to each non-excluded contributor'"'"'s prediction, where such weights are used to generate a weighted average of the predictions to produce the enhanced composite prediction; and

a computer-implemented graphical display for displaying the user-defined rules or factors used to generate the enhanced composite prediction.

2. The graphical user interface of claim 1 wherein the predictions comprise security analysts'"'"' earnings estimates, and the exclusion factors include an exclusion for estimates older than a user specified period or an exclusion for estimates older than a user-specified amount of time before or after a company'"'"'s last earnings report date.

3. The graphical user interface of claim 1 wherein the exclusion factors include an exclusion for predictions more than a user-specified number of standard deviations away from a mean.

4. The graphical user interface of claim 1 wherein the exclusion factors include a user-selectable option to exclude predictions that are older than a date of a beginning date of a last-detected cluster of prediction revisions.

5. The graphical user interface of claim 4 wherein the definition of a cluster is user definable.

6. The graphical user interface of claim 5 further comprising means for the user to specify a time parameter for determining whether predictions are to be considered part of the same cluster or cluster candidate.

7. The graphical user interface of claim 6, further comprising means for enabling the user to specify a time period between a date of at least one prediction, and a date of at least a second prediction, in order for the predictions to be considered part of the same cluster or cluster candidate.

8. The gphical user interface of claim 5 further comprising means for enabling the user to specify the parameters to qualify a cluster candidate as a cluster.

9. The graphical user interface of claim 8 wherein the parameters enable a user to specify restrictive, qualifying criteria on prediction revisions, including one or more of the condition that only revisions in the same direction can be considered part of the same cluster, or the condition that only revisions of at least a user-specified magnitude can be considered part of the same cluster.

10. The graphical user interface of claim 5 further comprising means for enabling a user to specify the minimum number of new predictions or qualifying prediction revisions that are required to define a cluster.

11. The graphical user interface of claim 10 comprising a means for allowing the number of new predictions or qualifying prediction revisions to be either a fixed number or a variable number depending on the number of contributors with active predictions as of the day for which the enhanced composite prediction is being calculated.

12. The graphical user interface of claim 9 wherein the variable number may be specified as a percentage of current contributors or by any means of mapping a number of current contributors to a required number of new predictions or qualifying revisions.

13. The graphical user interface of claim 1 further comprising means for enabling a user to specify adjustments to be made to one or more non-excluded predictions, where the adjustments are based on one or more factors.

14. The graphical user interface of claim 13, wherein the factors are based on one or more of historical contributor bias, historical aggregate contributor bias as a function of time prior to period report date, contributor'"'"'s firm'"'"'s relationship with a security'"'"'s issuer, or a security'"'"'s historical performance relative to consensus estimates.

15. The graphical user interface of claim 1, wherein the rules for assigning weights to each non-excluded contributor'"'"'s prediction is determined by one or more user-defined weighting factors.

16. The graphical user interface of claim 15, wherein each contributor receives an N-score for each weighting factor to provide the ability to meaningfully combine scores on factors that have different intrinsic units.

17. The graphical user interface of claim 15, wherein each weighting factor can be assigned a user-defined weight.

18. The graphical user interface of claim 17 wherein the weighting factors include one or more of accuracy and age of estimates.

19. The graphical user interface of claim 17 wherein a set of weights is used to combine the N-scores of each factor into the final weight for each contributor.

20. The graphical user interface of claim 15, wherein the factors comprise one or more of an accuracy metric, status metric, a broker list, contributor experience, and estimate age.

21. The graphical user interface of claim 20 wherein the status metric comprises an all-star list.

22. The graphical user interface of claim 21 further comprising means for enabling a user to specify a cutoff.

23. The graphical user interface of claim 20 wherein the broker list comprises a list of brokers by group, where each group is assigned a different factor score and the weighting factor is defined by the brokerage firm with which a contributor is associated.

24. The graphical user interface of claim 23 wherein a user can assign N-scores to each broker or group of brokers and store the set of N-scores in a broker list for use in other models.

25. The graphical user interface of claim 24 wherein a predetermined number of brokers receive a factor score of 1 and others get one or more other factor scores.

26. The graphical user interface of claim 24 further comprising means for displaying a list of brokers by group, and the contributors or number of contributors associated with the broker.

27. The graphical user interface of claim 20 wherein a contributor experience factor is user defined, the graphical user interface comprising means for enabling a user to specify a predetermined period type and a scoring system to define the experience factor.

28. The graphical user interface of claim 27 wherein the experience factor comprises the number of quarters or years for which the contributor had previously made predictions for a particular security.

29. The graphical user interface of claim 28 comprising means for enabling a user to specify a function that converts the number of periods of contributor coverage for a security into an N-score for the contributor experience factor for each contributor.

30. The graphical user interface of claim 27 wherein the scoring system comprises means for enabling a user to specify a first score for contributors having less than a first predetermined number of periods of experience with a given security and at least a second score for contributors having greater than a second number of periods of experience with the given security.

31. The graphical user interface of claim 15, wherein the user can define a weighting factor based on each contributor'"'"'s status in a published survey.

32. The graphical user interface of claim 31, wherein the survey includes levels of status designation and wherein the user can assign an N-score to each level of status designation including non-inclusion.

33. The graphical user interface of claim 15, wherein one or more weighting factors are based on historical accuracy of contributor'"'"'s predictions based on user-specified criteria.

34. The graphical user interface of claim 33 wherein the user-specified criteria includes the number and type of previous periods and the time prior to each prior period'"'"'s report date over which to measure accuracy.

35. The graphical user interface of claim 34 comprising means for converting accuracy scores to N-scores according to user-specified criteria.

36. The graphical user interface of claim 15, further comprising means for enabling a user to assign an N-score, proportionally by an accuracy metric.

37. The graphical user interface of claim 15, further comprising means for enabling the user to create more than one type of accuracy-based weighting factor.

38. The graphical user interface of claim 15, further comprising an estimate age factor, the estimate age factor being user selectable to be constant or proportional.