Loading…
Loading…
New AdvizorPro data shows RIAs broadened their ETF lineups in Q1 2026, leaning into real assets, active managers, and defense strategies.
The Convergence Long/Short Equity ETF has delivered additional proof of tail risk mitigation without surrendering much upside capture this year. Modest drawdowns were experienced during March's sell-off, and index-level upside capture occurred in April. The vehicle's long exposure is currently at ~60%, its lower bound, and management communicated alignment in favour of value over momentum and broadening over narrowing post Q1.
The Convergence Long/Short Equity ETF is an actively managed vehicle that "seeks alpha from a net long portfolio." CLSE has outperformed the S&P 500 index since my November article. Since the beginning of 2026, it has outmaneuvered IVV and IWV as it has excellently positioned itself for capital rotation. Moreover, since conversion into an ETF, CLSE has beaten IWV by about 28.5%.
The Convergence Long/Short Equity ETF has illustrated an ability to generate beta-reduced alpha via a quantametal approach. An equity market portfolio could deliver additional gains in 2026 due to macro factors. However, AI bubble narrative and valuations add to crash risk. CLSE ETF can maintain market exposure while softening crash risk via its long-bias long/short strategy.
The Convergence Long/Short Equity ETF is a nontraditional equity ETF that "seeks to provide a greater return potential than traditional approaches while reducing risk." CLSE has outperformed the S&P 500 index since my June article, when I rated it a Buy. Since the beginning of the year, it has beaten IVV and IWV. Over March 2022–October 2025, CLSE delivered a 1.27x higher annualized return than IWV and captured just 43.7% of its downside.
CLSE ETF offers a best-in-class long/short strategy, delivering strong risk-adjusted returns and consistent beta reduction, ideal for the current market environment. The fund's approach provides true diversification, focusing on idiosyncratic and sector-specific risk rather than broad market exposure, which is crucial in volatile markets. CLSE's impressive 3-year Sharpe Ratio of 1.21 and ten-year annualized double-digit returns support our bullish outlook.
CLSE has a long/short equity strategy designed to profit from both winners positioned to gain and laggards forecast to decline. Since its conversion to an ETF in 2022, it has delivered solid gains, outperforming IVV and IWV, chiefly thanks to its ability to keep losses at bay in 2022. I believe CLSE's nimble strategy should work for the current environment, as the U.S. airstrikes on Iran's nuclear facilities can contribute to volatility in the high-priced market.
CLSE's long-short strategy minimizes volatility and provides consistent alpha, outperforming SPY and IWV with a high Sharpe ratio and significant alpha. The fund's long exposure is 116%, short exposure is -52%, focusing on low P/E, fundamentally sound equities while shorting high P/E, speculative names. CLSE has demonstrated resilience during market downturns, with shallow drawdowns and strong performance in bull markets, making it superior to SPY and IWV.
Full call transcripts — prepared remarks + analyst Q&A — with speaker-by-speaker formatting and one-click switching across every quarter on file.
Click below to see what's inside, then upgrade to read every transcript for CLSE and 80,000+ other tickers.
Transcripts source: company-published earnings calls. Speaker attribution and formatting are processed in-app.