How to work with us · Schwab RIAs
Add it through the Schwab Marketplace, on your paper
Your client stays at Schwab. You stay the adviser. We supply the investment engine: institutional process without institutional friction, and a live record your committee can check every trading day.
- Fee
- 75 bps a year
- Pilot sleeves
- from $50,000
- Terms
- 30-day terminable
- Gross at 95% (two-sided)
- significant
The on-ramp
Long-only, liquid, in an SMA your clients own at Schwab
No shorting, no margin, no lock-ups, and nothing taken on faith. After every close, the live record is re-tested against a benchmark we committed to before trading began, and the reading is published, favorable or not, never repainted.
- Availability
- Schwab Managed Account Marketplace. Availability on the Schwab platform is not an endorsement or recommendation by Schwab.
- Structure
- Sub-advised SMA, Schwab custody
- Strategy
- Long-only US equity, 22 equal-weight names
- Signal
- Two independent models; both must agree
- Fee
- 75 bps a year · 6.25 bps deducted monthly, in advance
- Terms
- 30-day terminable, no long-term contract
- Ideal for
- IRA and tax-deferred mandates
- Account types
- IRA, Roth, other tax-exempt, and taxable · long only, no margin required · short-term gains by design
- Liquidity
- Daily; separately managed, you hold the account
- Capacity
- Estimated at least $300MM per strategy
- Minimums
- $50,000 per account sleeve · $250,000 adviser relationship
- Relationship
- Stays yours. We run trading only.
The due-diligence kitStatistical Validation, updated every trading day
Fit
Where it fits, and where it lags
The same transparency that shows our numbers shows our limits. Most managers avoid this conversation. We start it.
Where it fits
- A satellite US equity sleeve beside a passive core.
- IRA, Roth and other tax-exempt mandates, where the short-term gains it generates by design carry no tax cost.
- Clients who want a manager they can see all the way through.
Where it is likely to lag
- Narrow, mega-cap-led leadership, where an equal-weight book can trail the cap-weighted index.
- Pure Beta stress, sharpest in a risk-off sell-off, when correlations converge and selection goes quiet.
- Low-volatility, low-dispersion drift, where stocks move in lockstep and there is little to separate.
Why not just an ETF?
An equal-weight ETF gives a client the average stock
An equal-weight ETF gives a client the average stock for a few basis points, which is why we measure ourselves against RSP. Alpha Convergence is for advisers who want stock selection on top of that exposure. Our Factor attribution page tests whether the excess return is explained by common factors a cheaper fund could provide, and the Pure Beta / Alpha Opportunity page shows the days on which selection can be measured at all.
Four steps
At your pace. You can stop at any of them.
Watch the public monitors
Regime, period status and aggregate alpha, updated each trading day. No sign-up. The live record
Take a backstage tour
A live screen-share of FlightDeck with the CIO, including position-level detail. Book it
Run your diligence
Form ADV, the factsheet, the white paper and its full table of tests, daily reconciled returns and the validation reports. The kit
Start a pilot sleeve
Sub-advisory on the Schwab Managed Account Marketplace, from $50,000 a sleeve, 30-day terminable. Find us on the Marketplace under Alpha Convergence, or email us and we will walk you through it. Terms and fees
The tour
A live screen-share with the person who built it
- 01
The command center
Driven in real time. Not slides of it.
- 02
Today’s market
How it is classified, and what the book does about it.
- 03
The record
The tests behind it, recomputed daily, shown favorable or not.
Backstage tour
See it running live
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.