--- title: The Art of High-Conviction Investing description: . image: https://insights.advisorshares.com/hubfs/The%20historic%20Wall%20Street%20in%20New%20York%20York%20City..jpeg --- [Skip to content](https://insights.advisorshares.com/alpha-insights/the-art-of-high-conviction-investing#main-content) [![AdvisorShares logo](https://insights.advisorshares.com/hs-fs/hubfs/_AS%20Logos%20-%20Images/as-logo-800x120.jpg?width=400&height=67&name=as-logo-800x120.jpg)](https://advisorshares.com/) Open main navigation Close main navigation [All posts](https://insights.advisorshares.com/alpha-insights/all) April 14, 2026 # The Art of High-Conviction Investing ![Picture of AdvisorShares](https://insights.advisorshares.com/hs-fs/hubfs/_AS%20Logos%20-%20Images/AS%20icon2.png?width=50&name=AS%20icon2.png) By  [AdvisorShares](https://insights.advisorshares.com/alpha-insights/author/advisorshares)  ·  2 minute read ![The historic Wall Street in New York York City.](https://insights.advisorshares.com/hs-fs/hubfs/The%20historic%20Wall%20Street%20in%20New%20York%20York%20City..jpeg?width=350&height=234&name=The%20historic%20Wall%20Street%20in%20New%20York%20York%20City..jpeg)In a market often dominated by high-frequency algorithms and reactionary trading, the [**AdvisorShares Focused Equity ETF (CWS)**](https://advisorshares.com/etfs/cws/) offers a refreshing alternative. Led by Eddy Elfenbein, the creator of the acclaimed *Crossing Wall Street* blog, this ETF is built on a foundation of disciplined selection and long-term commitment. Rather than chasing the latest market noise, CWS focuses on a curated selection of high-quality businesses designed to compound wealth over time. --- ### The Strategy: A Disciplined Selection Process The core of CWS is the annual "Buy List," a proprietary selection process Elfenbein has refined since 2006. - **Concentrated Quality:** The fund maintains a lean portfolio of exactly **25 stocks**. This concentration ensures that the manager's highest-conviction ideas drive the fund's performance. - **Fundamental Rigor:** Stocks aren't chosen based on technical charts or momentum. Instead, the focus is on "Steady Eddys"—companies with durable competitive advantages, consistent earnings growth, and robust balance sheets. - **Annual Rebalancing:** Each January, the portfolio is meticulously reviewed. Underperforming positions or those with shifting fundamentals are replaced with five new high-potential candidates, ensuring the portfolio remains aligned with its quality-first mandate. --- ### A High-Conviction Portfolio The CWS portfolio is built on concentration rather than broad-market dilution. By limiting the fund to exactly **25 positions**, the strategy ensures that every holding must earn its keep based on rigorous fundamental criteria. CWS's "best-of-breed" approach results in a portfolio that looks significantly different from a standard index. While the S&P 500 Index is often dominated by a handful of mega-cap tech giants, CWS seeks out quality at a reasonable price stocks across the mid- and large-cap landscape.  As of 1/31/26, the fund is heavily anchored in sectors known for reliable cash flow and durable competitive moats: - **Healthcare:** This is the fund's largest sector exposure, featuring stable industry leaders like **McKesson (MCK)**, **Henry Schein (HSIC)**, and **Stryker (SYK)**. - **Technology & Industrials:** The portfolio balances high-precision tech with industrial reliability. Key positions include **IES Holdings (IESC)**, a leader in electronic connectors, and **Comfort Systems USA (FIX)**, which provides essential mechanical and electrical services. - **Consumer Staples & Discretionary:** The fund holds resilient consumer-facing businesses with strong pricing power, such as the convenience retailer **Casey’s General Stores (CASY)**. --- ### The "Fulcrum Fee": Skin in the Game One of the most innovative aspects of CWS is its fee structure. Most ETFs charge you the same amount whether they make you money or lose it. CWS uses a **performance-based fee**. - If the fund beats the S&P 500, the management fee goes up slightly. - If it underperforms, the fee drops. It’s one of the few funds where the manager’s paycheck is directly tied to your success. --- ### Who Is CWS for? CWS isn't for the day trader looking for a 50% gain by Friday. It’s for the long-term investor who believes that **quality + time = wealth**. It is a "buy-and-hold" vehicle in the truest sense, prioritizing business growth over trading volume. By focusing on a small group of elite companies, CWS aims to capture the long-term upside of the U.S. equity market while filtering out the daily volatility of broader indices.  **THE BOTTOM LINE:** CWS demonstrates that a focused, disciplined approach to stock selection can be a powerful engine for long-term growth. It’s an investment in businesses, not just tickers.  [Learn more about CWS](https://advisorshares.com/etfs/cws/)   --- | *— **For Institutional Investor Use Only. Not for Public Distribution** —* | | --- | | ***Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.** Foreside Fund Services, LLC, distributor.* *An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage.* *AIL-894124-2026-03-02   x20280331* | [Share this page on Facebook](https://twitter.com/intent/tweet?url=https://insights.advisorshares.com/alpha-insights/the-art-of-high-conviction-investing) --- [![AdvisorShares logo](https://insights.advisorshares.com/hs-fs/hubfs/_AS%20Logos%20-%20Images/as-logo-800x120.jpg?width=400&height=67&name=as-logo-800x120.jpg "AdvisorShares logo")](https://advisorshares.com) [Follow us on LinkedIn](https://www.linkedin.com/company/advisorshares/) [Follow us on X](https://x.com/AdvisorShares) [Follow us on Instagram](https://www.instagram.com/advisorshares/) [Follow us on YouTube](https://www.youtube.com/@AdvisorShares) AdvisorShares Investments, LLC 4800 Montgomery Lane Bethesda, Maryland 20814 1.877.843.3831 [Home](https://advisorshares.com/) [About](https://advisorshares.com/about/) [ETFs](https://advisorshares.com/etfs/) [Events](https://advisorshares.com/events/) [Contact Us](https://advisorshares.com/contact-us/) [Privacy](https://advisorshares.com/privacy-policy/)  |  Copyright © 2026, AdvisorShares Investments  |  Foreside Fund Services, LLC, distributor ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "AdvisorShares", "url" : "https://insights.advisorshares.com/alpha-insights/author/advisorshares" }, "dateModified" : "2026-04-14T19:31:53.814Z", "datePublished" : "2026-03-03T20:31:48.000Z", "headline" : "The Art of High-Conviction Investing", "image" : [ "https://insights.advisorshares.com/hubfs/The%20historic%20Wall%20Street%20in%20New%20York%20York%20City..jpeg" ], "mainEntityOfPage" : { "@id" : "https://insights.advisorshares.com/alpha-insights/the-art-of-high-conviction-investing", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://insights.advisorshares.com/hubfs/_AS%20Logos%20-%20Images/as-logo-800x120.jpg" }, "name" : "AdvisorShares" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : [ "AdvisorShares" ], "url" : "https://insights.advisorshares.com/alpha-insights/author/advisorshares" }, "datePublished" : "2026-03-03T20:31:48+0000", "description" : ".", "headline" : "The Art of High-Conviction Investing", "image" : "https://46537736.fs1.hubspotusercontent-na1.net/hubfs/46537736/The%20historic%20Wall%20Street%20in%20New%20York%20York%20City..jpeg", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://46537736.fs1.hubspotusercontent-na1.net/hubfs/46537736/_AS%20Logos%20-%20Images/as-logo-800x120.jpg" }, "name" : "AdvisorShares Investments" }, "url" : "https://insights.advisorshares.com/alpha-insights/the-art-of-high-conviction-investing" } ```