It was discussed long ago by Claude Shannon and discussed a bit in Fortune's Formula.
In the 1960s, Shannon gave a lecture in a hall packed with students and teachers alike in MIT, on the topic of maximizing the growth rate of wealth. He detailed a method on how you can grow your portfolio by rebalancing your fund between a stock and cash, while this stock stays in a random ranging market. (He used a geometric Wiener example). Essentially, you buy more when stock price is low, using the cash at hand, or sell more when stock price is high, with allocation of 50-50% value at each interval.
In addition, the ideas were further explored by Thomas Cover, with his Universal Portfolios concept. There was some word that he had left academia at one point to work on a hedge fund.
Having done some research in this area myself, I can say that one of the issues is that it takes a very long time for the results to converge (i.e. it would take a great amount of patience for your portfolio to converge towards the best asset's performance).