June 10, 20160Comments

Building The Best Model Portfolio: Executive Compensation Aligned With ROIC Webinar

In this webinar, CEO David Trainer, will discuss the importance of return on invested capital (ROIC), why linking executive compensation to ROIC is beneficial, and how New Constructs' tools can be used to create the best Model Portfolio.

by Kyle Guske II, Senior Investment Analyst, MBA

May 3, 20160Comments

Identifying Good And Bad Activist Investors

There are some genuinely good examples of shareholder activism out there. In the right context, activist investors hold management accountable and play a beneficial role in the market by ensuring that poor corporate governance and strategy don’t persist.

by Sam McBride

April 13, 20161Comments

Misaligned Incentives That Led To Valeant Disaster Go Unaddressed

We think that investing in VRX is not a good bet until Valeant’s leadership fully addresses the serious corporate governance flaws that are the source of the problems at the company.

by Kyle Guske II, Senior Investment Analyst, MBA

April 5, 20160Comments

Case Study: Shareholder Risks of Loss From Misaligned Executive Compensation

Even though most acquisitions destroy value, this deal stands out for just how quick and large the value destruction was. This case study details the acquisition and includes a warning on another deal that we think may follow the same path as the one in the case study.

by Sam McBride

November 10, 20152Comments

4 Reasons Executives Manipulate Earnings

While most earnings manipulation is not as blatant as the recent Valeant revelations, the fact remains that investors have to be on the lookout for earnings management at all times. To be properly vigilant, it’s important to understand why executives misstate earnings. When you understand the why, you’ll have a better sense of what you need to look for.

by Kyle Guske II, Senior Investment Analyst, MBA

October 29, 20150Comments

Non-GAAP Earnings Boost Executive Pay At The Expense Of Shareholders

Unadjusted GAAP earnings already obfuscate true profits enough, and non-GAAP earnings lead investors even farther astray. In turn, non-GAAP earnings are often used to line the pockets of insiders at the expense of shareholders.

by Sam McBride

May 29, 20140Comments

The Bidding War For Hillshire Is Bad For Investors

Incentive plans that encourage executives to chase short-term growth at the expense of healthy capital allocation make this sort of irrational behavior not just possible, but inevitable.

by David Trainer, Founder & CEO

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