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
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-Dec-31

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-Dec-31

Long Short
Number of Securities321
Average Market Cap ($mm)$1,584$58,391
Beta 1.0 1.0
EBITDA/EV20.8%7.3%
Gross Profits/Assets9.0%6.3%
Change in Debt2.6%3.7%
Return on Capital17.2%17.6%
Change in Assets0.2%2.2%

Sector Weightings as of 2019-Dec-31

Long Short
Communication Services12.2%-3.0%
Consumer Discretionary20.4%-2.8%
Consumer Staples0.0%-2.1%
Energy17.1%-1.3%
Financials16.1%-3.7%
Health Care15.4%-4.1%
Industrials15.4%-2.6%
Information Technology12.8%-6.7%
Materials16.7%-0.8%
Real Estate0.0%-0.8%
Utilities3.4%-0.9%
Total Equities129.6%-28.7%

Fund Holdings as of 2019-Dec-31

LongWeight
Parex Resources Inc4.8%
Canadian Solar Inc4.7%
Perion Network Ltd4.7%
Geopark Ltd4.5%
Torex Gold Resources Inc4.4%
SunCoke Energy Inc4.4%
Lands End Inc4.3%
Medical Facilities Corp4.3%
Tupperware Brands Corp4.3%
Champion Iron Ltd4.2%
American Axle & Manufacturing4.1%
Canacol Energy Ltd4.1%
Garrett Motion Inc4.1%
Jabil Inc4.1%
Actuant Corp4.1%
TriCo Bancshares4.1%
Northrim BanCorp Inc4.1%
Molina Healthcare Inc4.1%
Amkor Technology Inc4.0%
First Community Bankshares Inc4.0%
Waddell & Reed Financial Inc4.0%
RR Donnelley & Sons Co4.0%
Central European Media Enterprises Ltd3.9%
Premier Inc3.8%
Arch Coal Inc3.7%
Willis Lease Finance Corp3.7%
Verso Corp3.7%
GrafTech International Ltd3.7%
Entravision Communications Corp3.7%
Skyline Champion Corp3.5%
Spark Energy Inc3.4%
Lexicon Pharmaceuticals Inc3.3%

 

Short Security NameWeight
S&P 500 Index Futures-28.7%
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