Model Portfolio Performance Through 1Q26

Why It Matters

The outperformance validates New Constructs’ research framework and offers investors differentiated alpha in both bullish and bearish markets. Consistent long‑term excess returns strengthen the firm’s credibility as a boutique advisory source.

Key Takeaways

• Small‑cap short strategy beat Russell 2000 short index by 7%
• Large‑cap long portfolio outperformed S&P 500 by 4% in Q1 2026
• Focus List Long delivered 14.7% excess return versus S&P 500’s –4.6%
• Safest Dividend Yields model lagged S&P 500 by 0.7% total return
• Since 2005, large‑cap long strategy generated 9.8% annualized vs. 7.8% benchmark

Pulse Analysis

New Constructs’ first‑quarter 2026 performance report underscores the firm’s ability to generate alpha across divergent market conditions. While equity markets faced mixed earnings signals and heightened volatility, the firm’s small‑cap short and large‑cap long models posted 7% and 4% outperformance respectively. The Focus List, a curated set of long and short positions, delivered double‑digit excess returns, highlighting the value of targeted, research‑driven stock selection when broader indices struggled.

The report also reveals a nuanced picture: three core dividend‑oriented portfolios underperformed the S&P 500 by a narrow margin, reflecting the sector’s sensitivity to rising interest rates and shifting yield curves. Nonetheless, the modest lag—0.7% for the Safest Dividend Yields model—suggests that the portfolios still captured meaningful total return while preserving downside protection. Meanwhile, the Exec Comp Aligned and Dividend Growth models trailed the benchmark by 3.7% and 5.7%, a reminder that aggressive compensation‑linked or growth‑focused screens can be vulnerable during periods of earnings compression.

Beyond quarterly snapshots, New Constructs points to a 20‑year track record where its large‑cap long strategy has outpaced the S&P 500 by 2 percentage points on an annualized basis. For institutional investors and high‑net‑worth individuals seeking differentiated exposure, these results reinforce the appeal of a multi‑strategy approach that blends defensive short positions with opportunistic long bets. The firm’s transparent reporting and downloadable performance breakdown further enhance credibility, positioning it as a compelling partner for portfolios aiming to balance growth and risk mitigation.