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 Trust requires transparency. We want you to know how we do everything.

If you are looking for the best financial analysis, you've come to the right place.

This Harvard Business School (HBS) and MIT Sloan paper shows that our footnotes research improves “core earnings” accuracy by 15% on average and can generate 7-10% alpha in a long/short portfolio (more details). This paper compares our analytics on a mega cap company to other major providers.

HBS features our technology, the only technology that brings material footnotes data to investors, in the case study: “New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.”

We give you the financial due diligence needed to fulfill the Fiduciary Duty of Care.

 


About Us

Incorporated in July 2002, New Constructs is an independent investment research firm, specializing in quality-of-earnings, forensic accounting and discounted cash flow valuation analyses for public companies. Our research coverage base includes reports and ratings for over 3,000 company stocks, 7,000 mutual funds, and 400 ETFs.

Our Research Philosophy

Accounting data is not designed for equity investors, but for debt investors. Accounting data must be translated into economic data to understand profitability and the valuation relevant to equity investors. Respected investors (e.g. Adam Smith, Warren Buffett and Ben Graham) have repeatedly emphasized that accounting results should not be used to value stocks. Economic Earnings are what matter because they are:

  1. Based on the complete set of publicly-available financial information.
  2. Comparable across all companies.
  3. A more accurate representation of the underlying cash flows of the business.

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