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: $16.4537
Date & Time: 07-17-2019, 05:00pm
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-Jun-28

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

Under current regulations, fund performance can only be published one year after its inception.

Fund Characteristics as of 2019-Jun-28

Long Short
Number of Securities251
Average Market Cap ($mm)$1,912$53,018
Beta 1.2 1.0
EBITDA / EV18.4%5.6%
Gross Profits / Assets8.5%8.7%
Change in Debt4.3%34.7%
Return on Capital17.2%19.3%
Change in Assets4.8%14.0%

Sector Weightings as of 2019-Jun-28

Long Short
Communication Services18.4%-5.2%
Consumer Discretionary20.3%-10.2%
Consumer Staples0.0%-1.0%
Energy3.0%-0.5%
Financials10.0%-2.0%
Health Care20.7%-2.9%
Industrials15.9%-2.0%
Information Technology21.8%-4.3%
Materials25.3%-0.5%
Real Estate0.0%-0.6%
Utilities0.0%-0.4%
Total Equities135.4%-29.6%

Fund Holdings as of 2019-Jun-28

LongWeight
IDT Corp8.2%
North American Palladium Ltd7.9%
Molina Healthcare Inc7.0%
KEMET Corp6.5%
Great Lakes Dredge & Dock Corp6.4%
Tech Data Corp6.3%
Gran Colombia Gold Corp6.1%
Domtar Corp6.0%
BGC Partners Inc6.0%
GrafTech International Ltd6.0%
Macys Inc5.9%
Gannett Co Inc5.6%
Fossil Group Inc5.4%
Xperi Corp5.2%
Affimed NV5.2%
Verso Corp5.2%
Michaels Cos Inc4.9%
Tribune Publishing Co4.6%
Kamada Ltd4.3%
Lannett Co Inc4.3%
Dillards Inc4.0%
Waddell & Reed Financial Inc4.0%
Vishay Intertechnology Inc3.8%
RR Donnelley & Sons Corp3.4%
Chesapeake Energy Corp3.0%

 

Short Security NameWeight
S&P 500 Index Futures-29.6%