During 1Q25 footnotes season, we parsed 2,805 10Q and 10K filings and created $2,524,500[1] of value for clients. See details in Figure 1.
These filings tend to come in a large bunch, which we call Filing Season. The 1Q25 Footnotes Season is mostly 10-Qs for first quarter earnings from companies with 12/31 fiscal year ends.
Footnotes Seasons give our Robo-Analyst technology[2] an opportunity to shine as it enables us to produce proven-superior research with unrivaled speed and scale.
Figure 1: Putting a $ Value on Our Parsing Work for Clients: 1Q25 Footnotes Season
Sources: New Constructs, LLC
* FTEs = Full Time Employees at $100/hour for 8 hours a day.
Indeed, the work we do during footnotes season would cost our clients multiples more time and money than what we charge to replicate what we deliver.
The savings in Figure 1 are likely very conservative estimates because they do not account for the cost of any management or training of analysts. Nor, do they account for the cost of building the financial models to house the data or tracking accounting rule changes to make sure those models remain accurate.
Even with these conservative assumptions, it is clear that we create tremendous value for all of our clients, from Stock Tracker 50 to Professional and Institutional members.
Want access to our superior fundamental research? Start your membership today.
Proprietary Footnotes Season Data Drives Alpha
While we’re explaining the diligence required to calculate Core Earnings and generate proven-superior Stock Ratings, we want to show you how both deliver alpha. We’ve developed multiple indices with Bloomberg’s Index Licensing Group. Both are outperforming the S&P 500 this year. See Figures 2 and 3.
- Bloomberg New Constructs Ratings VA-1 Index (ticker: BNCVA1T:IND)
- Bloomberg New Constructs 500 Index (ticker: B500NCT:IND)
Figure 2 compares the performance of the Very Attractive Stocks Index, managed by Bloomberg, to the S&P 500. In 1Q25, the Bloomberg New Constructs Ratings VA-1Index (ticker: BNCVAT1T:IND) was up 4.6% while the S&P 500 was down 4.6%.
Figure 2: Very Attractive-Rated Stocks Strongly Outperform the S&P 500 in 1Q25
Sources: Bloomberg
Note: Past performance is no guarantee of future results.
Figure 3 compares the performance of the Bloomberg New Constructs 500 Total Return Index, managed by Bloomberg, to the S&P 500. In 1Q25, the Bloomberg New Constructs 500 Total Return Index (ticker: B500NCT:IND) was down 3.6% while the S&P 500 was down 4.6%.
Figure 3: Bloomberg New Constructs 500 Index Strongly Outperforms the S&P 500 in 1Q25
Sources: Bloomberg
Note: Past performance is no guarantee of future results.
This article was originally published on May 21, 2025.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt, receive no compensation to write about any specific stock, sector, style, or theme.
Questions on this report or others? Join our online community and connect with us directly.
[1] Cumulative savings is calculated assuming it takes nine hours per filing and a full-time employee making $100/hour to parse each.
[2] Harvard Business School features the powerful impact of our research automation technology in New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.