Patent ID: 7546264

Claim:
A process for selecting investments within an asset-class population of book-valued collective investment funds based on the differences in population density plotted on a graph and compiled within a data set of the points of investment performance for that population for a prior investment period, comprising the steps of: (a) storing as a data set within a computer device that calculates and displays summary statistical information of the data set in data records a population distribution made as a collection of the data records of the past investment performance of each of the book-valued funds within an asset class for a common investment period, said past investment performance being measured as a two-dimensional spatial distribution when displayed as a two-coordinate mean variance graph and compiled as two independent parameters within each of the data records with one dimension being the average of a contiguous series of periodic investment returns and the other dimension being the volatility of those periodic returns; (b) calculating and appending to the data record for each book-valued fund within this data set a normalized value for the average and volatility of its periodic investment returns as standardized against the average and standard deviation of the average of periodic returns and volatility of periodic returns for the asset-class population (c) appending a notation to the data record of each fund identifying it as uniquely belonging to one of a plurality of population-areas within a plot of the points of prior-period investment performance for the population of the asset-class, when formulated as a two-dimensional spatial distribution and sectioned so that the boundaries of such population-areas are drawn through the points of standardized average returns and standardized volatility of returns that would result in the division of the population distribution into plural areas of equal numbers of book-valued funds under the assumption that the asset-class population is uniformly random and forms a normal distribution about a central point for said population distribution; (d) counting the population of said book-valued funds in each of said population-areas; appending a count of that population-area to the data record of each book-valued fund within that population area; (e) appending to the data record for each book-valued fund a notation identifying a rank based on the population size of its population area relative to all other population area with the data set; and (f) selecting for future investment those book-valued funds from within the data set that are found in at least one said population-areas having a high measured population size ranking, relative to all ranks, when so ranked.