For investors seeking momentum, the Clough Hedged Equity ETF (CBLS Quick QuoteCBLS - Free Report) is probably on the radar now. The fund just hit a 52-week high and jumped 21.5% from its 52-week low price of $27.02 per share.

But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.

CBLS in Focus

This is an active fund that aims to outperform long-only benchmarks over investment cycles with reduced volatility through a carefully crafted portfolio of long and short equity positions. The product charges 190 basis points (bps) in annual fees (See: All Hedged Fund ETFs here).

What Led to the Rise?

The Clough Hedged Equity ETF’s new 52-week high must have been driven by its effective long/short active strategy. Its performance gained from significant long exposure to high-growth sectors, specifically Technology and Energy. The fund’s strong year-to-date returns and disciplined risk management are likely to have attracted capital seeking stability amid evolving market volatility, leading to this 52-week high.

More Gains Ahead?

CBLS may continue its strong performance in the near term, with a positive weighted alpha of 21.04 (as per Barchart.com), which suggests a further rally.