Your first thought is on the right track, Vette. Also, it may just need to be run in for an hour or two.
It's still a fairy small piston, too. That, and if it has a pretty short stroke will make it want to run at the higher speeds. A longer stroke will often slow it down. Still, more mass in the flywheel is usually a sure bet.
Is the bearing surface for the crankshaft just drilled, or has it been reamed? A close running fit here will make for a better runner. If it wobbles in the crankshaft bore even the slightest, it will eat power and won't want to run slow.
Check for anything that binds. Should spin freely if you give the flywheel a flick. If you spin it gently a number of times and it stops at or near the same place each time, it's binding on something. Crank pin or valve pin are the first place to look.
Dean