Strategies
Each strategy has its own engine, its own live monitor and its own evidence. Alpha Convergence is the flagship long-only book; from our sister company Leyland Cypress, AC Market Neutral hedges the same selection against the market and Independent Return is a low-volatility market-neutral sleeve.
Side by side
| Measure | Alpha Convergence® | AC Market NeutralLeyland Cypress | Independent ReturnLeyland Cypress |
|---|---|---|---|
| Shape | Concentrated equity, long only | Market neutral, low risk budget | Market neutral, very low risk budget |
| Live since | 27 Jun 2025 | 8 Jan 2026 | 11 Dec 2024 |
| Return, gross | +56.8% | +9.9% (not annualized) | Reported net only |
| Return, net | +52.8% | +8.1% (not annualized) | +16.0% |
| Annual return, net | +38.1% | 9.3 months of trading | +8.4% |
| Annual return, gross | +40.9% | 9.3 months of trading | Reported net only |
| Annual volatility | 13.9% | 5.5% | 2.1% |
| Maximum drawdown | −8.5% | −2.5% | −0.9% |
| Sharpe ratio | 2.17 | 1.54 | 2.03 |
| Market link | beta 0.86 to RSP | correlation 0.05 to RSP | correlation 0.07 to SPY |
| Benchmark | RSP, the equal-weight S&P 500 (SPY shown alongside) | RSP, its hedge instrument | SPY; also LQD, GOVT and SCHO |
| More | The strategy | The strategy | The strategy |
Alpha Convergence and AC Market Neutral are shown gross, with net of a 2% model advisory fee* beside them, not the fees actually billed. Independent Return is reported net of the fee by its manager, exactly as FlightDeck publishes it, so only net is shown and it is not netted again. Ratios are annualized from daily returns; AC Market Neutral’s returns are not annualized until its record reaches a year, as FlightDeck publishes them. Each figure is copied from the FlightDeck feed behind that strategy’s own FlightDeck page. Each strategy’s record is short and will change as data accumulates. 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.
* 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.
Which strategy fits which account
All three strategies generate short-term gains by design. In an IRA, Roth, defined-benefit plan, foundation, endowment or donor-advised fund those gains carry no tax cost. In a taxable account the gains are short-term.
IRA, Roth, other tax-exempt, and taxable accounts. Long only, no margin required.
The core of the line: excess return over the equal-weight S&P 500 while carrying less than full market exposure. Best tuned for tax-deferred and non-taxable accounts, and for taxable accounts in years when the excess return produces the better after-tax result.
Taxable accounts, and IRAs that qualify for margin at Schwab. Margin required: the RSP hedge is a short position held on margin.
For investors who want the Alpha Convergence selection without the market’s direction: the long book, with enough RSP sold short to remove as much of the market’s influence as possible. Run by Leyland Cypress.
Taxable accounts, and IRAs that qualify for margin at Schwab. Margin required: the ETF pairs are held long and short.
For stability that does not move with stocks or bonds: a long-short, hedged sleeve with low volatility that can stand in for part of a bond allocation. Run by Leyland Cypress.
Schwab RIAs, sophisticated individuals and non-tax-paying institutions: Alpha Convergence, rebalancing four to five times a year on the freshest signals from our models.
Family offices, institutions and sophisticated individuals looking for uncorrelated strategies: AC Market Neutral, an equity alternative that runs on the Alpha Convergence selection with the market hedged out.
Independent Return works more as a bond replacement: an uncorrelated alternative to bond funds, with low volatility, that can stand in for part of a bond allocation.
Both, in one plan: long-only selection for growth in tax-deferred and tax-exempt accounts, with the market-neutral sleeves for steadier, uncorrelated return across the rest of the plan.
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.
