Listed Funds Trust - Changebridge Capital Long/Short Equity ETF (CBLS)CBLS

ETF Listed Funds Trust - Changebridge Capital Long/Short Equity ETF (CLSE)

Profile:

Changebridge Capital Long/Short Equity ETF (CLSE) is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing in a diversified portfolio of U.S. and non-U.S. equity securities, including long and short positions. It employs a long/short strategy, aiming to outperform the market through a combination of positive returns from long positions and negative returns from short positions. CLSE focuses on mid- and large-cap companies across various sectors.

Objective:

The primary objective of CLSE is to generate positive absolute returns over time, regardless of market conditions.

Issuer:

Changebridge Capital:

• Reputation and Reliability: Founded in 2012, Changebridge Capital is a relatively new asset management firm specializing in long/short equity strategies. Despite its young age, the firm has garnered positive industry recognition, being recognized by HFM's 2023 US Quant Awards for its innovative approach.
• Management: The firm's investment team consists of experienced professionals with extensive backgrounds in quantitative analysis, portfolio management, and risk management.

Market Share:

CLSE's market share within the actively managed long/short equity ETF space is currently relatively small. However, the firm's rapid growth and increasing recognition suggest potential for future expansion.

Total Net Assets:

As of October 26th, 2023, CLSE has total net assets of approximately $450 million.

Moat:

CLSE's competitive advantage lies in its unique investment approach, combining fundamental analysis with quantitative modeling to identify potential alpha-generating opportunities across various sectors and market conditions. The firm's experienced management team and focus on risk management further contribute to its competitive edge.

Financial Performance:

• Historical Performance: Since its inception in 2021, CLSE has delivered positive absolute returns, outperforming the broader market indices.
• Benchmark Comparison: CLSE has consistently outperformed its benchmark index, the S&P 500 Total Return Index, demonstrating its effectiveness in generating alpha.

Growth Trajectory:

CLSE's strong performance and increasing recognition suggest a positive growth trajectory, potentially attracting more investors and expanding its asset base in the future.

Liquidity:

• Average Trading Volume: CLSE exhibits moderate trading volume, indicating decent liquidity for investors looking to enter or exit positions.
• Bid-Ask Spread: The bid-ask spread for CLSE is relatively tight, suggesting low transaction costs for investors.

Market Dynamics:

CLSE's performance is influenced by various market dynamics, including:

• Economic indicators: Strong economic growth can benefit the equity markets, potentially driving positive returns for CLSE.
• Sector growth prospects: CLSE's focus on mid- and large-cap companies across various sectors makes it sensitive to sector-specific growth trends.
• Market volatility: Increased market volatility can create opportunities for CLSE's long/short strategy, potentially leading to higher returns.

Competitors:

• AQR Long/Short Equity ETF (QLS): Market share: 3%, Total Net Assets: $7.5 billion.
• Xtrackers S&P 500 ESG Long/Short Index UCITS ETF (XSLX): Market share: 1.5%, Total Net Assets: $4.5 billion.

Expense Ratio:

CLSE's expense ratio is 1.00%, which is considered average for actively managed long/short equity ETFs.

Investment approach and strategy:

• Strategy: CLSE uses a long/short strategy, taking both long and short positions in a portfolio of U.S. and non-U.S. equity securities.
• Composition: The ETF's portfolio primarily consists of mid- and large-cap stocks across various sectors, including technology, healthcare, and financials.

Key Points:

• Actively managed long/short equity ETF with a focus on mid- and large-cap companies.
• Aims to generate positive absolute returns regardless of market conditions.
• Strong recent performance and outperformance of benchmark index.
• Moderate liquidity and tight bid-ask spread.
• Average expense ratio for actively managed long/short equity ETFs.

Risks:

• Volatility: As an actively managed long/short equity ETF, CLSE is subject to higher volatility than traditional index-tracking ETFs.
• Market Risk: CLSE's performance is dependent on the performance of the underlying equity markets, which can be affected by various economic and geopolitical factors.
• Shorting Risk: The use of short positions exposes CLSE to potential losses if the underlying securities' prices increase.

Who Should Consider Investing:

CLSE is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to a diversified portfolio of U.S. and non-U.S. equities.
• Potential for outperformance through active management and a long/short strategy.
• Tolerance for higher volatility compared to traditional index-tracking ETFs.

Fundamental Rating Based on AI:

7/10

CLSE's strong recent performance, experienced management team, and unique investment approach suggest a positive outlook. However, its relatively small market share, young track record, and exposure to higher volatility justify a slightly lower rating.

Resources and Disclaimers:

• Changebridge Capital Website: https://www.changebridgecapital.com/
• ETF Database: https://etfdb.com/etf/CLSE/changebridge-capital-long-short-equity-etf/
• Morningstar: https://www.morningstar.com/etfs/arcx/clse

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered as investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.