Changebridge Capital launches two actively managed ESG ETFs
Changebridge Capital, a Boston-based asset manager specialising in active management powered by quantitative and fundamental analysis, has launched its first two ETFs, CBLS and CBSE.
The Changebridge Capital Long/Short Equity ETF (CBLS) features a concentrated portfolio of long and short positions, with the aim of each position in the portfolio generating risk-adjusted alpha. By taking long positions in companies the managers believe will rise in price, while taking short positions in companies whose stock the managers believe will fall in value, the strategy seeks to achieve long-term capital appreciation while minimising volatility. CBLS has a small and mid-cap focus and integrates an ESG mindset into the investment process.
The Changebridge Capital Sustainable Equity ETF (CBSE) utilises a long-only approach in its concentrated portfolio. Its all-cap focus aims to select securities misunderstood or overlooked by the market to generate risk-adjusted alpha. CBSE is designed with a sustainability mandate, and as such assesses the environmental, social, and governance attributes of all securities considered for inclusion in the portfolio.
“We’re thrilled to be launching our first two funds, CBLS and CBSE,” says Ross Klein, Chief Investment Officer at Changebridge Capital. “By enabling investor access to actively managed funds that aim for a true active share, we feel we’re really leveling the playing field for investors who previously had difficulty accessing strategies like these, especially in the tax efficient, transparent ETF wrapper.”
“On top of the quantitative and fundamental analysis, both CBLS and CBSE take sustainability characteristics into account when selecting their respective portfolios,” Klein says. “This is a huge area of interest for many investors who wish to invest in accordance with their values. Moreover, the investing public has learned that ESG investing does not necessarily mean sacrificing returns.”
Both CBLS and CBSE take a technical, data-driven approach to stock selection, before also applying fundamental analysis. “We call it a ‘quantamental’ approach,” says Vincent Lorusso, Portfolio Manager at Changebridge Capital. “Our multivariate quant system is designed to actively identify inefficiencies, but that’s where fundamental analysis with a human touch takes over, to really drill down into the opportunities.”
CBLS has an expense ratio of 1.7 per cent, and CBSE has an expense ratio of 0.85 per cent.