Patent ID: 7987130

Claim:
A method implemented by a computing system for generating a stock portfolio, comprising the steps of: (1) inputting information of all stock that are constituents of a pre-selected universe of securities into a database, wherein the information comprises identity, growth data, and value data of a stock, as of a selection date; (2) scoring each of the stocks in said database using a plurality of growth and value factors to generate a growth score and a value score for each stock; (3) determining a selection score and style for each stock, wherein the style of each stock is either value or growth; (4) selecting eligible stocks for a target stock portfolio based on their styles determined in step (3), wherein only value stocks are eligible for a value stock portfolio, only growth stocks are eligible for a growth stock portfolio, and all stocks are eligible for a broad-based stock portfolio; (5) ranking the stocks eligible for the target stock portfolio from the best to the worst selection scores; (6) eliminating a predetermined percentage of the lowest ranking stocks; (7) dividing the remaining stocks into a plurality of sub-groups based on their rankings; and (8) generating the target stock portfolio by weighting the remaining stocks according to the sub-groups they are in, wherein the sub-groups with higher rankings receive more weight within the target stock portfolio, and each stock is equally-weighted within its group; wherein step (3) comprises: determining whether value and growth style classifications corresponding to the pre-selected universe of securities are available; and if there are corresponding value and growth style classifications available, a first segment of stocks that are classified by the corresponding growth and value classifications solely as growth stocks are given their growth scores as their selection scores, and they are determined to be growth stocks, a second segment of stocks that are classified by the corresponding growth and value classifications solely as value stocks are given their value scores as their selection score, and they are determined to be value stocks, and a third segment of stocks that are allocated to both the growth and value classifications are given the better of their two scores, and determined to be value or growth stocks according to their better scores, if there are no corresponding value and growth style classifications available, then each stock is given the better of its value and growth scores, and determined to be a value or growth stock according to its better score; and wherein at least each of steps (2) through (8) is performed by the computing system.