NASHVILLE, Tenn., May 20, 2020 /PRNewswire/ -- New Constructs (NC), the leading provider of insights into the fundamentals and valuation of private and public businesses, announced that portfolio optimization software provider Alpha Theory integrated NC's Earnings Distortion Scores directly into its platform for portfolio managers.
"Alpha Theory's goal is to constantly provide new sources of value for our clients and we believe the Earnings Distortion Score from New Constructs is a great addition," said Cameron Hight, CEO of Alpha Theory.
The Earnings Distortion Scores indicate how likely a company is to beat or miss consensus expectations for EPS, revenue or guidance in the next quarter. These scores are categorized into 5 tiers:
1 – Strong Beat
2 – Beat
3 – Inline
4 – Miss
5 – Strong Miss
"We are excited that Alpha Theory's clients will now have access to our proprietary consensus earnings prediction tool, which will help them make smarter investment decisions," said David Trainer, founder and CEO of New Constructs.
Earnings Distortion Scores measure the level of non-core income/expense contained within reported earnings. It is a proprietary measure featured by professors from Harvard Business School and MIT Sloan in a recent paper: Core Earnings: New Data & Evidence. The paper empirically demonstrates the superiority of NC's measure of core earnings based on NC's proprietary adjustments for unusual gains/losses.
About Alpha Theory
Alpha Theory is the premier solution used by portfolio managers to develop an efficient portfolio. Alpha Theory leverages a firm's research and instinct to build a repeatable system for optimally sizing positions.
About New Constructs
New Constructs provides insights into the fundamentals and valuation of private and public businesses. Combining human expertise with natural language processing (NLP), machine learning (ML) and artificial intelligence (AI) technologies, the firm's research shines a light in the dark corners (e.g. footnotes) of hundreds of thousands of corporate financial filings to unearth critical details that drive uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools. New Constructs technology brings critical and material footnotes research to the market for the first time ever, enabling analysts to measure and predict profits more accurately and deliver more alpha for clients. Elite money managers, advisors and institutions have relied on New Constructs to lower risk and improve performance since 2004. New Constructs and its research have been featured in national business news including CNBC, The Wall Street Journal, Reuters, CNN Business, Barron's, Forbes, Seeking Alpha, Benzinga and more. Strategic content partnerships with TD Ameritrade, E*TRADE, Refinitiv/Thomson Reuters, Interactive Brokers and EY enable New Constructs to deliver our investment ratings and research on over 10,000 stocks, ETFs and mutual funds to millions of self-directed investors, financial advisors and corporate executives.
Strategy Voice Associates, LLC
Alpha Theory + New Constructs
SOURCE New Constructs, LLC