Accelerate Private Equity Alpha Fund

About the Fund

The Accelerate Private Equity Alpha Fund (TSX: ALFA) is designed to provide investors with private equity-like investment returns through a diversified long-short portfolio of equity and derivative securities.

Investment Objectives

  • Replicate private equity returns
  • Target 12% – 18% annualized returns
  • Hold leveraged long positions
  • Hedge leveraged portion of portfolio
  • Provide uncorrelated returns
TRADING DATA
NAV: $18.1861
Market Cap: N/A
Date & Time: 05-21-2019, 11:34am
QUICK FACTS

Type:
Long-short equity

Date Started:
May 10, 2019

Management Fee:
0.00%

Performance Fee:
15% of outperformance over high water mark

Investment Manager:
Accelerate Financial Technologies Inc.

Distribution Frequency:
None

Exchange:
TSX

Currency:
CAD

Risk Rating:
Medium-High

Reference Portfolio Performance

Accelerate Private Equity Alpha Fund

Investment Process

ALFA utilizes a two-step systematic, proprietary multi-factor model to sort and rank all liquid North American stocks based on typical private equity leveraged buyout characteristics. First, ALFA filters all liquid North American stocks based on valuation, liquidity and size, and chooses a basket of top-decile, small and mid-cap value stocks. Then, ALFA ranks these top-decile value stocks based on four principle factors:
  1. Debt Paydown
  2. Return on Capital
  3. Gross Profit/Assets
  4. Change in Total Assets

The Fund goes long a leveraged portfolio of the highest expected return stocks selected from the multi-factor model while hedging the leveraged portion of the long portfolio by going short a broad U.S. equities index. The portfolio is balanced on a monthly basis.

Performance as of 2019-May-09

1 Month3 MonthsYTD1 Year3 YearsSince Inception
ALFAn/an/an/an/an/an/a

Fund Characteristics as of 2019-May-09

Long Short
Number of Securities251
Average Market Cap ($mm)$7,299$51,910
Beta1.11.0
EBITDA/EV19.5%7.2%
Gross Profits/Assets9.3%6.3%
Change in Debt-18.9%7.5%
Return on Capital19.2%19.3%
Change in Assets-3.2%2.8%

Sector Weightings as of 2019-May-09

Long Short
Communication Services14.1%-4.1%
Consumer Discretionary27.7%-4.1%
Consumer Staples0.0%-2.9%
Energy16.1%-2.0%
Financials20.1%-5.3%
Health Care8.1%-5.5%
Industrials17.7%-3.8%
Information Technology17.2%-8.5%
Materials12.0%-1.0%
Real Estate0.0%-1.2%
Utilities0.0%-1.3%
Total132.8%-39.7%

Fund Holdings as of 2019-May-09

Long Security NameWeight
Fossil Group Inc6.9%
Great Lakes Dredge & Dock Corp6.7%
Michaels Cos Inc/The6.6%
GrafTech International Ltd6.6%
Tribune Publishing Co6.3%
Crawford & Co6.2%
Xperi Corp6.2%
Molina Healthcare Inc6.1%
Nordstrom Inc6.1%
Verso Corp6.0%
Macy's Inc6.0%
Domtar Corp5.9%
Waddell & Reed Financial Inc5.9%
TransGlobe Energy Corp5.8%
BGC Partners Inc5.7%
Lee Enterprises Inc5.6%
Vishay Intertechnology Inc5.6%
KEMET Corp5.4%
ION Geophysical Corp5.2%
W&T Offshore Inc5.1%
RR Donnelley & Sons Co4.5%
Pzena Investment Management2.2%
IDT Corp2.1%
Signet Jewelers Ltd2.1%
Johnson & Johnson1.9%

 

Short Security NameWeight
S&P 500 Index Futures-39.7%