Our systematic stock selection strategies can help garner powerful results. Each strategy is built upon our fundamental stock picking process with the objective of outperformance through clear and predefined channels. Each strategy has a targeted objective designed to complement and enhance an investor’s overall strategy. Our strategies are based on corporate fundamentals supported by compelling empirical results that are applied within each industry group. We call it “research to results.”
Core Plus Strategy
The Convergence Core Plus strategy invests in large-cap companies with the objective of generating a more material and consistent alpha. This active extension strategy employs a dynamic fundamental process and seeks to benefit from fundamentally sound companies outperforming their inferior counterparts.
Small Cap Core Plus Strategy
The Convergence Small Cap Core Plus Strategy invests in small- to mid-cap companies with the objective of generating a more material and consistent alpha. This active extension strategy employs a dynamic fundamental process and seeks to benefit from fundamentally sound companies outperforming their inferior counterparts.
Market Neutral Strategy
The Convergence Market Neutral Strategy is a low beta strategy that seeks to provide positive monthly returns that are uncorrelated to the broader market. The strategy invests in mid- to large-cap companies and targets a forward beta between 0.0 and 0.2. The strategy employs a dynamic fundamental process and seeks to benefit from fundamentally sound companies outperforming their inferior counterparts.
The Convergence Dividend Growth strategy has three goals: above market dividend yield, market level or greater returns and less than broad market risk. The strategy goes beyond a simple yield focus by targeting companies with both sustainable and growing distributions.
Strategic Active Tax Management
The Objective of the Domestic Active Tax Management Strategy is to track the performance of U.S. equities, while minimizing the impact of taxable capital gains and actively harvesting taxable capital losses within the portfolio.
The Convergence Fundamentally weighted Index 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.
Investing involves risk, principal loss is possible.