Security analyst performance tracking and analysis system and method

• US 6,510,419 B1
• Filed: 04/23/1999
• Issued: 01/21/2003
• 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:
  US09/296,620
• Time in Patent Office: 1,369 Days
• Field of Search: 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. A database containing historical information pertaining to analyst earnings estimates and recommendations is downloaded into the system. Pre-calculated data values are also added to the database including adjustment factors a single or set of analysts based upon their historical earnings estimates as compared to actual earnings estimates over time, and other user-defined performance analysis set parameters and metrics. A weighting factor may also be calculated for a set of analysts based upon factors such as the recency of an analyst'"'"'s earnings estimates. Using these adjustment and weighting factors and each analyst'"'"'s actual earnings estimate, a custom composite estimate may be derived. A front-end graphical user interface (GUI) is used to view analyst historical data either as raw data or, by using a data visualization technique, as a graph or chart. The GUI allows a user to choose from a multitude of predetermined analysis parameters and metrics or to define his own parameters and metrics for calculation and visualization. A user may also, in similar manner, use a GUI to choose parameters and metrics to analyze and display the historical profitability of analysts'"'"' recommendations over a plurality of time periods.

Claims

1. A computer implemented system for creating a composite prediction based on a plurality of analysts'"'"' current predictions and historical data concerning analysts'"'"' past predictions, the system comprising:

(i) a historical database of data concerning a plurality of analysts'"'"' past predictions;

(ii) a database of a plurality of analysts'"'"' current predictions;

(iii) means for creating a model with user selected parameters to generate a composite prediction based on the historical data, comprising;

a. means for generating individual weighting factors for individual analysts based at least in part on the historical data;

b. means for modifying for individual analysts, the current prediction of an individual analyst by the weighting factor generated for the individual analyst, wherein the composite prediction is generated by summing the modified current predictions of a plurality of analysts; and

wherein the current predictions comprise analysts'"'"' earning estimates for a security.

2. The computer implemented system of claim 1 further comprising a historical view module to enable users to view historical data associated with one or more analysts wherein the historical view module enables a user to view simultaneously, for one or more selected analysts, a time series of earnings estimates for each analyst selected, for a predetermined period, for a predetermined earnings event.

3. The computer implemented system of claim 2 wherein the historical view module comprises means for enabling a user to select analysts whose estimates are to be displayed, including means to enable a user to individually select or deselect individual analysts, and an option to select or deselect all analysts.

4. The computer implemented system of claim 3 wherein the means for enabling a user to select analysts comprises a display box adjacent a time series display, for displaying a list of sources for which historical data is stored and an indicator of whether the source is selected for display.

5. The computer implemented system of claim 2 wherein the historical view comprises means for enabling a user to view simultaneously, for one or more selected sources, a time series of earnings estimates for each source selected, for a user specified period, for a user-specified earnings event, and further comprising a display box for displaying a list of sources for which historical data is stored and an indicator of whether the source is selected for display, each source having unique identifier associated with it, and wherein the identifier is associated with the time series display for that source.

6. The computer implemented system of claim 2 further comprising a time series display of security price displayed in juxtaposition with the time series of earning estimates for the security.

7. The computer implemented system of claim 2 further comprising a grid displaying detail data on an analyst by analyst basis as of a selected date.

8. The system of claim 2 wherein the historical view module enables a user to toggle between time series estimate view and detailed data in tabular form.

9. The system of claim 8 wherein summary information is rendered with the detailed data.

10. The system of claim 8 wherein the detailed data comprises analyst name, broker name, current estimate, previous estimate, percent change, date of estimate, and age of estimate.

11. The system of claim 8 wherein the historical view module enables a user to simultaneously display in the same grid, historical analyst performance including historical accuracy, analyst distinctions, and how long the analyst has been following the stock.

12. A computer implemented system for creating a composite prediction based on a plurality of analysts'"'"' current predictions and historical data concerning analysts'"'"' past predictions, the system comprising:

(i) a historical database of data concerning a plurality of analysts'"'"' past predictions;

(ii) a database of a plurality of analysts'"'"' current predictions;

(iii) means for creating a model with user selected parameters to generate a composite prediction based on the historical data, comprising;

a. means for enabling an adjustment factor to be applied to current predictions for selected analysts;

b. means for enabling a weighting factor to be applied to the adjusted current predictions for the selected analysts to generate modified current predictions of the selected analysts, wherein the composite prediction is generated by summing the modified current predictions of the selected analysts; and

wherein the current predictions comprise analysts'"'"' earning estimates for a security.

13. A computer implemented system for creating a composite prediction based on a plurality of analysts'"'"' current predictions and historical data concerning analysts'"'"' past predictions, the system comprising:

(i) a historical database of data concerning a plurality of analysts'"'"' past predictions;

(ii) a database of a plurality of analysts'"'"' current predictions; and

(iii) means for creating a model with user selected parameters to generate a composite prediction based on the historical data wherein the current predictions comprise analysts'"'"' buy-sell recommendations for a security;

wherein the means for creating a model comprises;

a. means for generating individual weighting factors for individual analysts based at least in part on the historical data; and

b. means for modifying for individual analysts, the current buy-sell recommendation of an individual analyst by the weighting factor generated for the individual analyst, wherein the composite prediction is generated by summing the modified current buy-sell recommendations of a plurality of analysts.

14. A computer implemented system for creating a composite prediction based on a plurality of analysts'"'"' current predictions and historical data concerning analysts'"'"' past predictions, the system comprising:

(i) a historical database of data concerning a plurality of analysts'"'"' past predictions;

(ii) a database of a plurality of analysts'"'"' current predictions; and

(iii) means for creating a model with user selected parameters to generate a composite prediction based on the historical data wherein the current predictions comprise analysts'"'"' buy-sell recommendations for a security;

wherein the means for creating a model comprises;

a. means for enabling an adjustment factor to be applied to current buy-sell recommendations for selected analysts; and

b. means for enabling a weighting factor to be applied to the adjusted current buy-sell recommendations for the selected analysts to generate modified current buy-sell recommendations of the selected analysts, wherein the composite prediction is generated by summing the modified current buy-sell recommendations of the selected analysts.

15. A computer implemented system for creating a composite prediction based on a plurality of analysts'"'"' current predictions and historical data concerning analysts'"'"' past predictions, the system comprising:

(i) a historical database of data concerning a plurality of analysts'"'"' past predictions;

(ii) a database of a plurality of analysts'"'"' current predictions; and

(iii) means for creating a model with user selected parameters to generate a composite prediction based on the historical data wherein the current predictions comprise analysts'"'"' buy-sell recommendations for a security;

wherein the means for creating a model comprises;

a. means for enabling an adjustment factor based on a raw error metric to be applied to current buy-sell recommendations for selected analysts; and

b. means for enabling a weighting factor based on an absolute error metric to be applied to the adjusted current buy-sell recommendations for the selected analysts to generate modified current buy-sell recommendations of the selected analysts, wherein the composite prediction is generated by averaging the modified current buy-sell recommendations of the selected analysts.