Go to his wbsite. check out the srapola cos. it comes up with. A few might be ok but many seem as if they are just tiny cos. with temporary earnings blips.
I own the book, and there is no "system" in it in the sense that it could be backtested, because it can't. His hedge fund returns are higher for whatever reason, but he only suggests that 20% annual returns are possible by buying value stocks that are cheap. Think of it as a plane flight book.
Of course there is a system (the book is about one thing: a system!) and of course it can be tested, in fact the author himself states that it (as well as variations of it) is was backtested. You "own" the book but did you read it?
Well, send me software that can backtest fundamentalsand ill get back to you. Michael Covel wrote a blurb about how fundamentalists find it easy to accept that fundamentals seem to be divining rods for investing as opposed to looking at current and past price. http://www.michaelcovel.com/archives/000674.html
Get FA data, set up a database with the data, create proper VB tools to backtest data on excel. At least thats how I am doing it. You should check out the folks at the Mechanical Investing forums on Fool. They backtest their strategies using fundamentals. I believe one of them set up an online backtesting unit with 25 yrs worth of fundamental data. Its free too last I checked (which was a while back). So theres the answer to your problems. Innovators don't let simple technical problems get in their way.
I would like to see what the drawdown of a fundamentalist system is. Then I'd have something to compare to.