Alpha Convergence® · LUL Asset Management
We test our edge against luck every trading day. Equal-weight stock selection: two independent models must agree before a stock is bought, the book is rebuilt before the edge fades, and the live record is published every trading day, favorable or not.
Since inception on 27 Jun 2025: +56.8% gross, +52.8% net of a 2% model fee*, against +22.3% for RSP, as of 20 Oct 2026. Includes 27 Jun to 18 Aug 2025 on firm capital. The full record
* Net figures deduct a 2% model fee, the highest fee we charge. Our fees range from 1% to 2% a year, depending on the size of the account. The full schedule is in Form ADV Part 2A.
Separately managed accounts · Schwab custody · Sub-advisory for Schwab RIAs
What every client gets
Every client has access to our best products, no matter the size of their account. From the minimum up, every account runs the same strategy, and these five commitments come with it.
Whether you are a family office or an investor just starting out with the minimum, you get access to our best products: the same portfolio, rebuilt from the same signals.
Accounts are held at Charles Schwab in the client’s name, so you always know exactly what you own, through Schwab and our Black Diamond reporting.
Every strategy’s record updates each trading day and is published whether it flatters us or not. A period that trails its benchmark is published unchanged.
Mark Tennenbaum summarizes the week for the Alpha Convergence flagship line: the regime, the period, what changed and what we did. See a sample
Quantitative, rules-based products you can follow all the way through, designed for an expected outperformance that we track and show daily.
Strategies
Twenty-two US-traded equities, equal weight, two in each of the eleven sectors, rebuilt before the edge fades. Particularly suited to tax-deferred and tax-exempt accounts; no margin.
Cumulative since 27 Jun 2025, as of 20 Oct 2026. Net of a 2% model fee*.
The Alpha Convergence long book, hedged with a short position in RSP so the account carries our selection edge and not the market. Needs a margin account. Managed by our sister company, Leyland Cypress.
Cumulative since 8 Jan 2026, as of 19 Oct 2026: 9.3 months, not annualized. Net of a 2% model fee*. Leyland Cypress record.
ETF arbitrage, long and short, built to move with neither stocks nor bonds. Managed by our sister company, Leyland Cypress.
Since 11 Dec 2024, as of 20 Oct 2026, as FlightDeck reports them: net of the manager’s fee; return and volatility annualized. Leyland Cypress record.
* Net figures deduct a 2% model fee, the highest fee we charge. Our fees range from 1% to 2% a year, depending on the size of the account. The full schedule is in Form ADV Part 2A.
AC Market Neutral and Independent Return are managed by our sister company Leyland Cypress LLC (CRD 322964); their figures are the Leyland Cypress record. Life UnLocked Partners holds a 50% interest in Leyland Cypress and receives a share of its fees; see Form ADV. Past performance is not indicative of future results. Records this short are heavily influenced by the market environment in which they were earned. Disclosures.
The evidence
The live Alpha Convergence record, tested against RSP, the benchmark fixed before trading began. No back tests. The reading is published whether it is favorable or not.
| Alpha Convergence total return | Gross | Net of 2% model fee* | RSP, total return |
|---|---|---|---|
| Since inceptionstrategy record, from 27 Jun 2025 | +56.8% | +52.8% | +22.3% |
| Last twelve monthsfrom 21 Oct 2025 | +36.3% | — | +15.5% |
Cumulative, as of 20 Oct 2026. Includes 27 Jun to 18 Aug 2025 on firm capital before client accounts began. Net deducts a 2% model advisory fee*, the top of the fee schedule, not the fees actually billed. The statistics that follow are computed on gross returns. Past performance is not indicative of future results.
* Net figures deduct a 2% model fee, the highest fee we charge. Our fees range from 1% to 2% a year, depending on the size of the account. The full schedule is in Form ADV Part 2A.
FlightDeck · as of 20 Oct 2026. Active return is measured against RSP total return. Significance is measured gross, as the SEC marketing rule permits for a statistic of skill. Computed on gross returns; does not reflect the deduction of all fees and expenses. Net total returns for the same period are shown in the Alpha Convergence total-return table above. The primary test is one-sided (is active return above zero?); the 95% interval is two-sided, the more conservative choice. These are observations from a short record, not a forecast.
FlightDeck
Every day FlightDeck classifies the market regime, tracks each period’s alpha, watches the Storm Center and flags when a position needs a human decision. Decisions come from evidence, not from the day’s mood.
FlightDeck’s Pure Beta / Alpha Opportunity framework, forthcoming in the Journal of Investment Management, asks what kind of day it is. When SPY moves at least 1% in either direction, we classify it as Pure Beta: a day dominated by the market. Smaller moves are Alpha Opportunity days, when differences between stocks make selection easier to measure.
How the framework worksToday’s regime
AO
Alpha Opportunity
SPY +0.45%
Environment
Normal
VIX 16.6
Breadth
NARROW RALLY
Large caps leading, rest lagging.
SPY +0.45% RSP +0.26%
Selective strength -- mega-cap driven.
PB density (20D)
10%Risk appetite
EQUITY LEADS
Stocks bid, credit lagging — speculative tilt
IWM +0.40 HYG +0.12 TLT +0.07
Selective optimism — alpha possible but watch credit
Sectors
Updates every 60s during market hours
weather-system →Thresholds inform discretionary decisions; they do not trigger automatic trades.
How to work with us
Individuals, family offices and institutions can invest directly or through their Schwab adviser.
Alpha Convergence as a sub-advised SMA on your paper. 75 bps a year, pilot sleeves from $50,000, 30-day terminable. The relationship stays yours.
Fee-only, from $150,000 as stated in our Form ADV Part 2A. You hold the account, we trade it, and you can see every position.
Flight Club
Topical articles, portfolio case studies and the thinking behind our tools, explained in plain language.
Backstage tour
A live screen-share of FlightDeck with Mark Tennenbaum, CIO: the command center driven in real time, how today’s market is classified and what the book does about it, and the record with the tests behind it.
