For educational purposes only. Nothing on this site constitutes investment advice. Disclaimers
CLSE — Convergence Long/Short Equity ETF
CLSE is a net-long U.S. equity fund that goes long businesses Convergence expects to outperform and short businesses it expects to deteriorate — returns depend on individual stock selection, not on which way the market moves.
CLSE price history
Total return (Yahoo adjusted close—dividends and splits per Yahoo), normalized to $10,000 at first available trade date. Educational only.
Strategy
The fund uses a combination of quantitative signals and fundamental analysis: rules-based models for timing and risk sizing, overlaid with manager judgment on business quality and balance-sheet risk. The long book targets fundamentally resilient companies; the short book targets deteriorating ones. The net exposure is long-biased — this is not a market-neutral fund.
Shorting has real costs: borrow fees, dividend pass-through on short positions, and margin interest. These show up in the expense ratio and in the spread between the fund's performance and a simple long-only benchmark. In short squeezes or rate spikes, the short book can hurt even if the long book is right on fundamentals.
Manager and Issuer Pedigree
Convergence Investment Partners runs the strategy out of Florida with a long institutional pedigree in long/short equity; the ETF is the same strategy packaged for exchange liquidity, with published fact sheets, investor guides, and quarterly holdings downloads on investcip.com rather than a bare ticker stub.
Listed AUM is boutique versus mega issuers—expect wider median bid/ask and more days away from NAV than SPY-class funds—so implementation (limit orders, patience around rebalances) matters as much as the underlying stock calls.
Outperformance
Outperforms when <strong>stocks diverge</strong> from each other, when good companies beat bad ones regardless of what the index does. Active stock dispersion environments, where earnings quality and balance-sheet differences drive divergence between longs and shorts, are the favorable tape. CLSE can compound in the <strong>choppy/sideways</strong> environment, in flat or directionless markets that kill pure index strategies.
Underperforms when <strong>everything correlates to 1.0</strong>: a sharp macro-driven risk-off collapses the spread between long and short legs, and a short squeeze can hurt the short book independent of fundamentals. It also needs time, months or years for stock calls to play out, and underperforms in momentum-driven markets where cheap valuation is irrelevant. Favorable: <strong>choppy/sideways</strong> environment (wide stock dispersion, sideways or directionless index). Hostile: synchronized macro risk-off.
Similar ETFs
| Ticker | Name | Score | MER | AUM |
|---|---|---|---|---|
| CLSE | Convergence Long/Short Equity ETF | A+ | ~1.52% | ~$28M |
| ORR | Militia Long/Short Equity ETF | A+ | ~1.30% | ~$22M |
Official ETF page
Read the official ETF page for current NAV, holdings, and documents: Convergence Investment Partners (CLSE).