Frequently Asked Questions

Clough Capital Partners is a Boston-based boutique asset manager founded in 2000 by Chuck Clough, who previously served as Chief Global Investment Strategist at Merrill Lynch. The firm manages approximately $1.4 billion in assets across actively managed ETFs, closed-end funds, separately managed accounts, and limited partnerships.

The firm's investment approach is built on three pillars: macro research, fundamental research, and thematic research. Portfolio managers — Vince Lorusso (CEO), Bill Whelan (Partner), and Chuck Clough (Chairman and CIO) — collaborate to craft high-conviction portfolios seeking superior, risk-adjusted returns.

Clough Capital's research process integrates three complementary disciplines. Macro research monitors economic cycles, monetary policy, and cross-asset trends. Fundamental research analyzes company-level valuations and competitive positioning. Thematic research identifies secular growth trends and structural industry shifts.

Chuck Clough's macro framework, published quarterly in The Macro Compass, provides the intellectual foundation for all portfolio strategies.

Charles I. Clough, Jr., CFA — Founder, Chairman, and CIO with over 60 years in financial markets. Former Chief Global Investment Strategist at Merrill Lynch and author of The Macro Compass.

Vincent M. Lorusso, Jr. — President, CEO, and Portfolio Manager with over 27 years of investment experience, managing both actively managed ETFs.

William G. Whelan — Partner and Portfolio Manager with over 20 years of experience, co-portfolio manager of the three closed-end funds. The team has an average tenure of 13 years at the firm.

Extraordinary access: Clients work directly with portfolio managers, not intermediaries. Conviction-driven portfolios: High-conviction, research-driven — not benchmark-hugging. Institutional-quality research: Chuck Clough's 60+ years of experience and quarterly Macro Compass provide macro research typically available only to large institutional investors. Continuity: Average team tenure of 13 years. Pioneering active ETFs: Among the first to bring active management to the NYSE ETF structure in 2020.

The Macro Compass is Clough Capital's flagship macro research publication authored by founder and CIO Chuck Clough. Published quarterly, it provides detailed analysis of economic cycles, monetary policy, cross-asset market trends, and their implications for portfolio positioning.

The Macro Compass is available through Clough Capital's News & Insights section.

Clough Capital offers two actively managed ETFs listed on the New York Stock Exchange:

The CBSE Clough Select Equity ETF — a high-conviction, long-only equity strategy with a 5-star Morningstar rating based on three-year risk-adjusted returns.

The CBLS Clough Hedged Equity ETF — combines long and short positions targeting approximately 60% net exposure. Both ETFs were among the first actively managed ETFs listed on the NYSE in November 2020.

CBSE is a long-only, high-conviction equity strategy designed for investors seeking growth through concentrated stock selection — tends to capture more upside in rising markets.

CBLS adds a short-selling component maintaining approximately 60% net market exposure to hedge against broad market declines — designed for smaller drawdowns during sell-offs.

Both use the same three-pillar research process and offer the same transparency, liquidity, and tax-efficiency benefits of the ETF structure.

CBLS employs a long/short equity strategy maintaining approximately 60% net market exposure — long positions in stocks expected to appreciate, short positions in stocks expected to decline. It is designed to provide meaningful downside protection during market declines while participating in upside, constructed using Clough's macro, fundamental, and thematic research process.

Hedging involves specific risks including potential for unlimited loss on short positions. Active management involves higher fees than passive index strategies.

Both CBSE and CBLS use an in-kind creation and redemption process that can minimize the realization of capital gains within the fund. Investors may receive fewer taxable capital gain distributions compared to actively managed mutual funds with similar strategies.

Tax efficiency is not guaranteed and depends on individual circumstances. Investors should consult a qualified tax advisor.

Both CBSE and CBLS trade on the NYSE like any stock — search the ticker symbol in your brokerage account and place an order. No minimum investment beyond the price of a single share.

Before investing, carefully review the prospectus to understand objectives, risks, and fees.

Clough Capital manages three closed-end funds on the NYSE: GLO Clough Global Opportunities Fund, GLQ Clough Global Equity Fund, and GLV Clough Global Dividend and Income Fund.

These funds invest globally across equity, fixed income, and alternative strategies. The closed-end structure provides a stable capital base — managers do not need to sell holdings to meet redemptions — allowing for more concentrated, high-conviction positioning.

Yes. In addition to NYSE-listed ETFs and closed-end funds, Clough Capital offers separately managed accounts (SMAs) and limited partnership strategies for qualified investors. SMAs provide individualized portfolio management with the ability to customize holdings and tax management.

For more information, contact Clough Capital directly or schedule a discovery call.

An Exchange-Traded Fund (ETF) is an investment fund that trades on stock exchanges throughout the day, like a stock. When you buy an ETF, you're purchasing shares of a diversified portfolio of underlying securities — potentially giving you exposure to dozens, hundreds, or thousands of stocks in a single transaction.

ETFs combine the features of mutual funds and stocks — diversification like mutual funds, intraday trading like stocks. A unique creation and redemption mechanism involving Authorized Participants keeps the ETF's market price aligned with its net asset value, ensuring fair pricing for all investors.

ETFs offer diversification, lower costs compared to traditional mutual funds, tax efficiency, intraday trading flexibility, and daily transparency of holdings — efficient building blocks for portfolio construction whether used as core holdings or for tactical allocations.

ETFs trade throughout the day at market prices with lower minimums (often just one share), while mutual funds trade once daily and typically require minimums of $1,000+. ETFs are generally more tax-efficient and provide daily holdings transparency versus quarterly disclosure for mutual funds.

A single ETF can hold dozens to thousands of securities, spreading investment risk across many companies, sectors, and geographies. This built-in diversification reduces the impact of any single holding's poor performance on your overall investment.

ETF liquidity refers to how easily you can buy or sell shares without significantly impacting price. ETFs offer two-layer liquidity: secondary market trading (investors trade with each other on the exchange) and primary market creation/redemption (institutions create or redeem share blocks directly with the issuer), ensuring efficient execution even for less-frequently traded ETFs.

ETFs use an "in-kind" redemption process where authorized participants exchange securities directly rather than cash, avoiding taxable sales. Historically, only 20% of active ETFs have paid capital gains compared to 77% of active mutual funds.

Most ETFs disclose their complete holdings daily, so you know exactly what you own at any time. This helps advisors avoid unintended portfolio overlaps, verify that strategies match stated objectives, and make informed decisions about position sizing and risk management.

Yes. Unlike mutual funds, ETFs can be traded using limit orders, stop-loss orders, and other advanced techniques throughout the trading day. See our guide on tips for trading ETFs.

An actively managed ETF employs portfolio managers who make ongoing decisions about which securities to buy, hold, or sell based on research and market analysis. Unlike passive index ETFs that simply replicate an index, active ETFs aim to outperform benchmarks through skilled security selection and portfolio management.

Active managers can adapt to changing market conditions, respond to new information, implement risk management techniques, and potentially generate returns exceeding the benchmark. They have flexibility to overweight attractive opportunities and underweight areas with deteriorating fundamentals or poor valuations.

Active managers make discretionary decisions to outperform benchmarks; passive strategies aim to match benchmarks with minimal trading. Passive strategies typically have lower fees and full market participation, while active strategies target outperformance but carry higher fees and underperformance risk.

Alpha represents the excess return generated beyond what a benchmark index delivers. A manager generating 15% returns while the benchmark returns 12% has created 3% of alpha. Generating alpha after fees is the primary goal of active management.

Risk-adjusted returns measure how much return you earned per unit of risk taken. Two portfolios both returning 15% — if one achieved this with half the volatility, it delivered superior risk-adjusted returns. Generating the same outcome with less risk is a valuable outcome.

Active management makes sense if you believe skilled managers can exploit market inefficiencies to outperform after fees, or if you value flexibility and risk management during volatile periods. Thorough evaluation of track record and investment process is essential before selecting an active manager.

For long-term investors, timing is less important than starting early and investing consistently. For tactical trades, mid-day trading (avoiding the first 30 minutes after market open) typically offers the tightest bid-ask spreads and best liquidity. See our ETF trading tips for more guidance.

The bid-ask spread is the difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Narrow spreads are favorable. Highly liquid ETFs typically have spreads of just a few cents; less-liquid ETFs may have wider spreads that increase your trading cost.

Yes. ETFs are subject to market risk — the value of your shares will fluctuate based on the performance of underlying securities. If the securities held by the ETF decline in value, your ETF shares will also decline. Diversification and appropriate risk management are important.

A prospectus is a legal document detailing the ETF's investment objectives, strategies, risks, fees, and manager information. Reading it before investing helps you understand exactly what you're buying and whether the ETF aligns with your goals. Access Clough Capital's prospectuses at cloughcapital.com/etfs.

Long-term investors might review quarterly or annually, while active traders monitor more frequently. Regular review helps ensure your holdings remain aligned with your objectives and overall portfolio allocation.

Tax-loss harvesting involves selling an ETF at a loss to offset capital gains elsewhere in your portfolio, reducing taxes owed. You can then immediately buy a similar (but not "substantially identical") ETF to maintain market exposure. ETFs' daily trading capability and abundant choices make this strategy practical.

Yes, especially in taxable accounts. The tax efficiency of ETFs (fewer capital gains distributions) versus mutual funds can meaningfully improve after-tax returns over time. For tax-advantaged accounts like IRAs, tax efficiency is less relevant as gains are deferred or exempt.

Absolutely. Financial advisors can coordinate ETF selections across your full portfolio to minimize taxes, implement tax-loss harvesting, manage cost basis, and align holdings with your overall financial plan. For complex tax situations, consulting a tax professional alongside your advisor is advisable.

Financial advisors help evaluate which ETFs align with your specific goals, risk tolerance, and time horizon; assess strategy and process relative to alternatives; ensure diversification across your full portfolio; and coordinate rebalancing and tax-loss harvesting strategies.

The two ETFs — CBSE and CBLS — and three closed-end funds — GLO, GLQ, GLV — all trade on the NYSE and can be purchased through any brokerage account. For separately managed accounts and limited partnerships, schedule a discovery call with the investment team.

Visit www.cloughcapital.com for prospectuses, fund fact sheets, holdings data, and quarterly investor letters. Individual fund pages: CBSE, CBLS, GLO, GLQ, GLV.

Visit the Contact page or reach us directly at 617-204-3400 or investorrelations@cloughcapital.com. Financial advisors can reach the investment team directly for questions about strategy, holdings, or portfolio positioning.

Carefully review the prospectus and other fund documents to understand investment objectives, strategies, risks, and fees. Consider your financial situation, goals, risk tolerance, and time horizon. Consult with a qualified financial advisor to determine if the ETFs are appropriate for your circumstances.