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

• US 7,788,156 B2
• Filed: 03/20/2006
• Issued: 08/31/2010
• Est. Priority Date: 06/18/1999
• Status: Expired due to Fees

• Current Assignee: Refinitiv US Organization, LLC (Refinitiv US Holdings, Inc.)
• Original Assignee: Thomson Financial LLC (Refinitiv US Holdings, Inc.)
• Inventors: Columbus, Craig E., Bettis, J Carr
• Primary Examiner(s): Kyle; Charles R.
• Assistant Examiner(s): Niquette; Robert R
• Application Number:
  US11/385,214
• Publication Number:
  US 20060161492A1
• Time in Patent Office: 1,625 Days
• Field of Search: 705 35- 45
• US Class Current: 705/36.00R
• 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 computer implemented method executed on a processor in communication with a memory and an output device of evaluating an investor'"'"'s performance against performances of other investors by utilizing information stored in said memory pertaining to at least one first transaction made by the investor involving at least one investment and to at least one second transaction made by the investor involving at least another investment, said method comprising the steps of:

determining by the processor a first average return value for the at least one first transaction, said first average return value corresponding to an average rate of return of the at least one first transaction involving the investment for a first period of time;

determining by the processor a second average return value for the at least one second transaction, said second average return value corresponding to an average rate of return of the at least one second transaction involving the investment for a second period of time;

calculating by the processor a first standard measure of confidence, for said first average return value and a second standard measure of confidence for said second average return value;

calculating by the processor a first degree of freedom for said first average return value and a second degree of freedom for said second average return value;

determining by the processor a first probability for said first period of time by utilizing said first standard measure of confidence and said first degree of freedom, and a second probability for said second period of time by utilizing said second standard measure of confidence and said second degree of freedom;

generating by the processor a conditional raw score for the investor by utilizing said first and second probabilities;

generating by the processor an adjusted raw score by utilizing the conditional raw score, said total number of transactions occurring during the first period of time, and said total number of transactions occurring during the second period of time;

determining by the processor a performance score indicative of the investor'"'"'s performance relative to other investors based on the adjusted raw score

comparing by the processor the performance score of the investor against performance scores of the other investors to produce an evaluation of the inventor; and

electronically transmitting by the processor the evaluation of the investor to the output device.

2. The method of claim 1, wherein said first period of time is approximately three months and said second period of time is approximately six months.

3. The method of claim 1, wherein said information comprises confidential data.

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

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

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

7. The method of claim 1, wherein

the first standard measure of confidence and the second standard measure of confidence are respectively first and second t-stat values and the calculating of said first t-stat value (t-stat1) and said second t-stat value (t-stat2) is based at least in part on said first average return value (average.return1) and said second average return value (average.return2), a first standard deviation (SD1) and a second standard deviation (SD2), a total number of transactions (decisions1) occurring during the first period of time, and a total number of transactions (decisions2) occurring during the second period of time;

and

the generating by the processor of the adjusted raw score comprises adding an adjustment (adjustment) to the conditional raw score (cond. raw score), wherein the adjustment is based on said total number of transactions occurring during the first period of time and said total number of transactions occurring during the second period of time.

8. The method of claim 7, wherein if SD 1=0, then the adjusted raw score=0 otherwise wherein if SD2, =0, then the adjusted raw score=0 otherwise;

9. The method of claim 7, wherein said first probability (prob1) and said second probability (prob2) are determined according to a predetermined look-up table using actual calculated values of:

the first degree of freedom (DF1), the second degree of freedom (DF2), t-stat1, and t-stat2, unless;

DF1>

100, in which case DF1 is set to 100;

DF2>

100, in which case DF2 is set to 100;

t-stat1>

20, in which case t-stat1 is set to 20;

t-stat2>

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

t-stat1<

0.01, in which case prob1 is set to 0;

or t-stat2<

0.01, in which case prob2 is set to 0.

10. The method of claim 7, wherein the conditional raw score equals

11. The method of claim 7, wherein

12. The method of claim 1, wherein the at least one first transaction and at least one second transaction comprise buy transactions, said method thereby providing an evaluation of the investor'"'"'s buy performance.

13. The method of claim 1, wherein the at least one first transaction and at least one second transaction comprise sell transactions, said method thereby providing an evaluation of the investor'"'"'s sell performance.

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

15. 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.

16. 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.

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

18. 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.

19. A system including a processor in communication with a memory and an output device for evaluating an investor'"'"'s performance against performances of other investors by utilizing information stored in said memory pertaining to at least one first transaction made by the investor involving at least one investment and to at least one second transaction made by the investor involving at least another investment comprising:

means for determining by the processor a first average return value for the at least one first transaction, said first average return value corresponding to an average rate of return of the at least one first transaction involving the investment for a first period of time

means for determining by the processor a second average return value for the at least one second transaction, said second average return value corresponding to an average rate of return of the at least one second transaction involving the investment for a second period of time;

means for calculating by the processor a first standard measure of confidence, for said first average return value and a second standard measure of confidence for said second average return value;

means for calculating by the processor a first degree of freedom for said first average return value and a second degree of freedom for said second average return value;

means for determining by the processor a first probability for said first period of time by utilizing said first standard measure of confidence and said first degree of freedom, and a second probability for said second period of time by utilizing said second standard measure of confidence and said second degree of freedom;

means for generating by the processor a conditional raw score for the investor by utilizing said first and second probabilities;

means for generating by the processor an adjusted raw score by utilizing the conditional raw score, said total number of transactions occurring during the first period of time, and said total number of transactions occurring during the second period of time;

means for determining by the processor a performance score indicative of the investor'"'"'s performance relative to other investors based on the adjusted raw score

means for comparing by the processor the performance score of the investor against performance scores of the other investors to produce an evaluation of the inventor; and

means for electronically transmitting by the processor the evaluation of the investor to the output device.