Featured Stock From Our Most Dangerous Model Portfolio for April 2026

Why It Matters

The portfolio offers investors a structured way to capture downside risk in volatile markets, while the Very Attractive Index demonstrates the upside potential of New Constructs’ rating methodology.

Key Takeaways

• April portfolio adds ten new short‑position stocks
• March short portfolio beat S&P 500 by 0.1%
• Top large‑cap short fell 22%
• Top small‑cap short fell 33%
• 17 of 36 shorts outperformed S&P 500

Pulse Analysis

Short‑focused model portfolios have gained traction as market volatility spikes, offering investors a systematic hedge against equity downturns. New Constructs’ Most Dangerous Portfolio leverages its proprietary Unattractive rating to isolate companies with misleading earnings or inflated valuations. By concentrating on these risk‑laden stocks, the model aims to deliver downside protection while still generating alpha when the broader market slides, a strategy that resonates with risk‑averse institutional and high‑net‑worth investors.

Performance data from March 2026 illustrates the model’s efficacy: the portfolio’s 5.1% decline narrowly outperformed the S&P 500’s 5.0% loss, and a majority of its constituents delivered superior short returns. Notably, the best‑performing large‑cap short shed 22% and the leading small‑cap short dropped 33%, highlighting the aggressive positioning that can capture steep price corrections. These results reinforce the value of disciplined short selection, especially when traditional long‑only strategies struggle in bearish environments.

Beyond the short side, New Constructs promotes its Very Attractive Stocks Index, which has outpaced the S&P 500 by 29% over the past five years, showcasing the dual‑track approach of pairing defensive shorts with high‑conviction longs. While the index itself isn’t tradable, subscribers gain access to the underlying Very Attractive and Most Dangerous stocks, enabling a balanced, research‑driven portfolio construction. This integrated offering underscores the firm’s broader ambition to become a go‑to source for data‑rich, rating‑driven investment insights in an increasingly complex market landscape.