Mark Cuban Sports Hedge Fund Revisited

(CNBC) - More than four years ago, Dallas Mavericks owner Mark Cuban said that if he started any hedge fund, it would be a sports gambling hedge fund.

Cuban quickly noted that it was merely a fantasy: as an owner, he wouldn't be allowed to bet. But I can't stop thinking about the fact that that idea probably would have yielded among the best percentage returns of any hedge fund this year.

The billionaire's rationalization started with the fact that sportsbooks make money off people who expect to lose - but for the smart gambler, the sports book opportunity could actually be better than the stock market.

Here's what Cuban wrote at the time:

"When you think about betting on sports, there really is far better information about your local sports team than there is about any local business in your market. The local papers cover the team every day. The local TV station gives a report about every game. There are radio stations who cover them for hours at a time. That's far more information that you get about Tyco or Computer Associates."

Cuban's argument continued to get better:

"In sports, when someone does something wrong, they pretty much tell you the next day or two. Someone suspended - you know it. Someone hurt - they report it. And do a better job of policing than any industry watchgroup. And stats? My goodness. There is no comparison."

It's well known that in order to be considered a money-maker, the fund would have to pick winners about 55 percent of the time.

There'd be a lot of legal issues to clear here, but especially given the current environment, wouldn't you just love to see how it would do?