Has anyone developed an automated system that uses the "caps" calls? Even the obviously flawed star ranking system could (in the period that this paper studies) be used to "outperform" the benchmark by a nice margin (as is shown in the paper). All calls are public and it would really be a waste to not use them.
If you have and there is a way for you to describe it without giving too much away please respond here.
Somehow this "caps" game situation reminds me of the Goldcorp story. They should initiate a contest ...
The Canadian gold mining group Goldcorp made 400 megabytes of geological survey data on its Red Lake, Ontario, property available to the public over the Internet. They offered a $575,000 prize to anyone who could analyze the data and suggest places where gold could be found. The company claims that the contest produced 110 targets, over 80% of which proved productive; yielding 8 million ounces of gold, worth more than $3 billion. The prize was won by a small consultancy in Perth, Western Australia, called Fractal Graphics.