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:
Private equity replication

Structure:
Alternative ETF

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 2021-Sep-30

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

Fund Characteristics as of 2021-Sep-30

Long Short
Number of Securities01
Average Market Cap ($mm)$1,637$65,992
Beta1.11.0
EBITDA/EV13.3%5.9%
Gross Profits/Assets9.6%6.7%
Change in Debt-21.6%5.8%
Return on Capital12.0%16.4%
Change in Assets-1.6%5.0%

Sector Weightings as of 2021-Sep-30

Long Short
Communication Services0.0%-3.1%
Consumer Discretionary0.0%-3.2%
Consumer Staples0.0%-1.9%
Energy0.0%-0.6%
Financials0.0%-2.9%
Health Care0.0%-3.8%
Industrials0.0%-2.4%
Information Technology0.0%-7.7%
Materials0.0%-0.7%
Real Estate0.0%-0.7%
Utilities0.0%-0.8%
Equity Exposure0.0%-27.9%
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