New Constructs provides unrivaled insights into the fundamentals and valuation of private & public
businesses. Combining human expertise with NLP/ML/AI technologies, the firm’s research shines a
light in the dark corners (e.g. footnotes) of hundreds of thousands of financial filings to unearth
critical details that drive uniquely comprehensive and independent debt and equity investment
ratings, valuation models and research tools.
We improve the integrity of the capital markets by providing investors of all types with more complete and accurate earnings and valuation research.
Our clients represent many of the largest and most prestigious quants, PMs, advisors, wealth management firms, self-directed investor firms, consultants and academic institutions in the world. To name a few: Wells Fargo, TD Ameritrade, Morgan Stanley, BAC Merril Lynch, Ernst & Young, Harvard Business School and Stanford Business school.
These firms use our research for superior insight into the profitability and valuation of 10,000+ stocks, ETFs and mutual funds.
Our cutting-edge technology brings insights from footnotes to the analysis of earnings and fundamentals that was previously unavailable. Specifically, our Robo-analyst technology adjusts traditional earnings metrics for unusual gains/losses that other firms and Wall Street analysts miss.
Harvard Business School & MIT Sloan recently published a detailed paper proving:
1. our measure of core earnings is superior to the state-of-the-art offerings from legacy data providers
2. the stock market and analysts are inefficient and do not incorporate the unusual gains/losses we find.
Here's the link to that HBS & MIT Sloan paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3467814.
Ernst & Young also wrote a paper showing the superiority of our earnings, cash flow and return on invested capital (ROIC) models. The appendix of the paper compares our analysis of Dow to Bloomberg and CapitalIQs research for Dow's 2015 financials. This comparison highlights how much more data we find and bring to the modeling of cash flows than other firms.
Here's the link to the E&Y paper: https://www.newconstructs.com/wp-content/uploads/2019/06/Getting-ROIC-Right.pdf