Our Research

Convergence Investment Partners builds all of its investment solutions on the back of its proprietary research engine. The Convergence research engine calculates and tracks hundreds of metrics on thousands of companies on a daily basis. Our core research effort focuses on the integrity of the data, with special care to avoid statistical bias.

Convergence Unbiased Equity Commentary Q1 2021

The Convergence Unbiased Equity strategy posted a strong 15.46% return in the first quarter of 2021. The Convergence Unbiased Equity strategy seeks to provide investors with a portfolio that is weighted towards tangible fundamentals as opposed to a simple cap weighting schema. Academic research and empirical analysis have shown that such a weighting approach may provide meaningful alpha over the course of the market cycle.

Convergence Dividend Growth Commentary Q1 2021

The Convergence Dividend Growth strategy posted a strong 12.65% return in the first quarter of 2021. As a value focused strategy with lower volatility due to the relative stability of dividend payers, we are pleased with the returns generated during an environment of meaningful rotation of market leaders.

Convergence Factor Analysis Commentary Q4 2020

Q4-2020 Factor Analysis

Convergence Long/Short Strategies Commentary Q4 2020

The year 2020 was a wild year that will not be soon forgotten. Pandemic, global lockdowns, contentious elections, blistering bear market and rebound, eye-popping trading volume, monumental stimulus, IPOs, ZIRP, TINA, and drama from index committees concerning their timing to add hypergrowth companies into their indexes.

Convergence Dividend Growth Commentary Q4 2020

Convergence has been successfully managing the Dividend Growth Strategy for nearly sixteen years and the strategy’s lead manager has invested within a dividend-focused discipline for over two decades. Our core tenants of providing competitive, long-term returns, while assuming below market level of volatility and above market level of dividends have remained steadfast. Over the past decade, the Convergence Dividend Growth Strategy has outperformed the Russell 1000 Value index by 109 basis points, net of fees.

Convergence Long/Short Strategies Q3 2020 Commentary

As we reflect on the 3rd quarter and the year 2020 overall, the traditional investment measurements and analogies may not suffice in explaining the narrative of the recent results within equities. As in the famous opening line of the original Star Trek series, we have truly gone "to where no man has gone before.”.

Convergence Factor Analysis Q3 2020 Commentary

Q3-2020 Factor Analysis

Convergence Dividend Growth Commentary Q3 2020

The Convergence Dividend Growth strategy generated a positive 2.50%, net of fees, in the 3rd quarter. The strategy has slightly outperformed the Russell 1000 Value Index by 0.24% year-to-date, as above-average dividend paying companies have basically matched the returns of the value index, which includes both dividend paying and non-paying companies.

Convergence Factor Analysis Q2 2020 Commentary

We ranked all 15 factor composites by quintile spread return to show that what can work over the long term is not always true in the short term (see disclosures for a definition of quintile spread return).

Convergence Long/Short Strategies Q2 2020 Commentary

The Convergence Long/Short Equity strategy finished the second quarter of 2020 up 6.00%. The Convergence Market Neutral strategy slipped -2.81% for the quarter. The strategies succeeded in outperforming the broader equity market indices net of fees during the first quarter but understandably failed to fully participate in the rebound rally from mid-March to quarter-end. As hedged strategies, we expect to add relative return in downturns and when the market rallies we expect to participate to a varying degree relative to market averages.

Convergence Dividend Growth Commentary Q2 2020

The Convergence Dividend Growth strategy generated a 16.71% return, net of fees, in the second quarter of 2020. The strategy outperformed the Russell 1000 Value Index by 2.42% for the quarter.

Convergence Long/Short Strategies Q1 2020 Commentary

In the first quarter of 2020, the Convergence Long/Short Strategies succeeded in outperforming the broader equity market indices net of fees during the tumultuous Coronavirus environment. The Convergence process favors specific characteristics which helped us to maintain a portfolio of companies that were additive to our relative results, particularly in February and March.

Convergence Factor Analysis Q1 2020 Commentary

Convergence Dividend Growth Commentary Q1 2020

In the first quarter of 2020, the Convergence Dividend Growth strategy succeeded in marginally outperforming the Russell 1000 Value, net of fees, during the tumultuous Coronavirus environment. The characteristics the Convergence process favors helped us to maintain a portfolio of companies that proved additive to our results, particularly in February and March.

Convergence Long/Short Strategies Q4 2019 Commentary

As we began the year of 2019, U.S. investor appetites, as well as anxiety levels, have made a complete turnaround. Fear of an impending global slowdown from the previous year was replaced by elation that the Fed had everyone’s back. This resulted in equity markets generating sizeable returns to close out the decade. Many investors now perceive the equity market as invincible, as we will discuss. Interest rates are low, following three rate cuts by the Fed, volatility is low, and the price momentum among specific names has been stunning. At the same time, quietly brewing under the surface, is stalled earnings growth.

Convergence Factor Analysis Q4 2019 Commentary

“…there is little to suggest that factor investing has structurally changed or that it has lost its appeal. While the returns have been disappointing of late, we would do well to keep on plowing the fields and wait for better harvests in the future.” Nicolas Rabener, author/columnist

Convergence Dividend Growth Commentary Q4 2019

The Convergence Dividend Growth strategy delivered strong results in 2019 by generating a total return of 25.53% for the year, net of fees. Companies with strong fundamental characteristics rewarded investors given the marked appreciation of those stocks within the equity markets.

Convergence Factor Analysis Q3 2019 Commentary

Is now a good time to look at hedged equity and/or market neutral?

Convergence Long/Short Strategies Q3 2019 Commentary

Investors in the Convergence Long/Short strategies were rewarded in the 3rd quarter with solid outperformance. The risk fueled run-up in Q1 gave way in Q2 to a more disciplined and rational environment for stock selection, and this rational environment persisted through the end of Q3.

Convergence Dividend Growth Commentary Q3 2019

The Convergence Dividend Growth outperformed the Russell 1000 Value by over 100 basis points in the third quarter of 2019, net of fees. It was a jumpy quarter where most indexes finished up with small single digit returns.

Convergence Long/Short Strategies Q2 2019 Commentary

Investors in the Convergence Long/Short strategies were rewarded in the 2nd quarter with solidly positive returns. The first quarter’s risk-fueled run-up gave way in Q2 to a more disciplined and rational environment for stock selection..

Convergence Dividend Growth Commentary Q2 2019

The Convergence Dividend Growth strategy delivered a very strong return in the first half of 2019, up 13.18%. As a value focused strategy with lower risk in terms of beta and volatility, we were pleased with the strong returns generated during the past six months given the powerful upward move in the broader markets.

Convergence Long/Short Strategies - Convergence Q1 2019 Commentary

The George Costanza Market.

Convergence Dividend Growth Commentary Q1 2019

The Convergence Dividend Growth strategy delivered a very strong total return in the first quarter of 2019, up 10.75%. We are pleased with the strong returns generated this quarter during this sharp upward move in the markets, especially since dividend and value focused strategies tend to be lower risk in terms of beta and volatility.