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-Aug-30

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-Aug-30

Long Short
Number of Securities341
Average Market Cap ($mm)$1,305$52,907.00
Beta 1.1 1.0
EBITDA/EV17.2%7.2%
Gross Profits/Assets6.6%6.3%
Change in Debt-3.8%7.7%
Return on Capital14.0%18.3%
Change in Assets2.6%3.1%

Sector Weightings as of 2019-Aug-30

Long Short
Communication Services14.5%-3.2%
Consumer Discretionary15.0%-3.1%
Consumer Staples4.1%-2.3%
Energy14.7%-1.3%
Financials15.0%-3.9%
Health Care21.0%-4.2%
Industrials17.9%-2.8%
Information Technology15.8%-6.7%
Materials16.8%-0.8%
Real Estate0.0%-1.0%
Utilities1.2%-1.0%
Total Equities136.0%-30.4%

Fund Holdings as of 2019-Aug-30

LongWeight
Lannett Co Inc8.1%
FONAR Corp5.3%
GrafTech International Ltd5.1%
SEMAFO Inc4.7%
Vishay Intertechnology Inc4.7%
Great Lakes Dredge & Dock Corp4.6%
Geopark Ltd4.5%
North American Palladium Ltd4.3%
Hurco Cos Inc4.3%
Dillards Inc4.2%
Scholastic Corp4.2%
Brightsphere Investment Group4.2%
KEMET Corp4.2%
Arch Coal Inc4.1%
Nu Skin Enterprises Inc4.1%
H&R Block Inc4.0%
Gran Colombia Gold Corp4.0%
Hamilton Beach Brands Holding4.0%
Waddell & Reed Financial Inc4.0%
Gencor Industries Inc3.9%
Molina Healthcare Inc3.9%
IDT Corp3.8%
Bank First Corp3.8%
Domtar Corp3.8%
Esperion Therapeutics Inc3.7%
Xperi Corp3.6%
Lee Enterprises Inc3.4%
Southwestern Energy Co3.4%
Ideanomics Inc3.4%
Auburn National Bancorporation3.1%
Blue Hat Interactive Entertainment3.1%
The Container Store Group Inc2.8%
Delek US Holdings Inc2.7%
Spark Energy Inc1.2%

 

Short Security NameWeight
S&P 500 Index Futures-30.3%
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