New Constructs provides unrivaled insights into the fundamentals and valuation of private and 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. Many firms claim their research is superior, but none of them can prove it with independent studies from highly-respected institutions as we can. Superior Data: proven in a paper forthcoming in the Journal of Financial Economics (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3467814) (it's 71 pages...we provide a summary here https://www.newconstructs.com/evidence-on-the-superiority-of-our-earnings-data/) Superior Models: proven in this whitepaper from Ernst & Young (https://www.newconstructs.com/wp-content/uploads/2019/06/Getting-ROIC-Right.pdf) Superior Stock Ratings: proven in this paper from Indiana’s Kelley School of Business (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3514879). Bloomberg features the paper here (https://www.bloomberg.com/news/articles/2020-02-11/robot-analysts-outwit-humans-in-study-of-profit-from-stock-calls?sref=zw7RLDfe).
Robo-Analyst Credit Ratings
Our Credit Ratings are the first alternative source of fixed income research in a market that has lacked competition. As a result, investors have been forced to rely on relatively expensive research that often lacks independence since the research providers get paid by the companies for whom they provide ratings. Our Credit Ratings also differ from legacy providers’ ratings as follows:
- More coverage: credit ratings for 2,750+ companies.
- Daily updates: all ratings reviewed daily based on market events and new financial data.
- More rigor: our research is based on our superior, proprietary fundamental data, not the traditional data proven to be flawed by The Journal of Financial Economics.