Profile

Confluence is a fintech firm specializing in environmental / social / governance (“ESG”) data analytics and investment strategies. We merge fundamental and quantitative techniques into software-driven, systematic processes that generate predictive performance metrics — along with other valuable, material insights — and produce model, as well as customizable, index investment strategies. Simply put, Confluence offers investors what they need to find an edge and improve results.

Mission

Our mission is to provide the most unique, material, and accessible information by using traditional and innovative approaches to both data analysis and investment strategy.

History

Confluence was founded in 2008 and initially operated as a private L.P. fund-of-funds. It sought to generate consistent, uncorrelated returns for investors using a multi-strategy approach. During its decade-long run, the fund repeatedly produced top-quartile results as compared to its peers — all while having a negative beta relative to U.S. equities.

In 2015, Confluence helped found Etho Capital with the goal of creating a broadly diversified, high-performing stock index of U.S. companies having minimal carbon footprints or output. Later the same year, an ETF (ticker: ETHO) was launched to track Etho’s index. Since its inception in November 2015, the fund has outperformed the U.S. market by double digits on a percentage basis while exhibiting a comparable risk profile.

In 2018, Confluence began focusing more heavily on ESG data analytics. Our past work on numerous ESG-integrated investment strategies had proved to us that ESG data holds great potential and untapped value — especially when a proper analytical process is applied. So, we developed an innovative, software-driven approach that merges multiple data inputs and methods of analysis to find previously undiscovered investment insights — such as performance-relevant ESG factors and return signals. Next, we built a systematic investment strategy engine to generate model, and customizable, ESG-integrated indexes specifically designed to outperform benchmarks. Going forward, we will continue pursuing new, fresh ideas to further expand our capabilities and improve our products.