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

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 2020-Apr-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 2020-Apr-30

LongShort
Number of Securities381
Average Market Cap ($mm)$1,506$52,673
Beta 1.21.0
EBITDA/EV19.2%7.6%
Gross Profits/Assets11.3%6.1%
Change in Debt-7.4%2.4%
Return on Capital16.0%17.2%
Change in Assets-0.5%2.1%

Sector Weightings as of 2020-Apr-30

LongShort
Communication Services7.2%-2.9%
Consumer Discretionary23.9%-2.8%
Consumer Staples14.1%-2.0%
Energy12.6%-0.8%
Financials14.0%-2.9%
Health Care5.7%-4.1%
Industrials18.0%-2.1%
Information Technology13.5%-6.9%
Materials14.3%-0.7%
Real Estate0.0%-0.8%
Utilities3.6%-0.9%
Equity Exposure127.0%-27.0%

Fund Holdings as of 2020-Apr-30

LongWeight
MasterCraft Boat Holdings Inc4.6%
W&T Offshore Inc4.3%
Torex Gold Resources Inc4.2%
Lands End Inc4.2%
Northeast Bank4.1%
Lifevantage Corp4.1%
Nu Skin Enterprises Inc3.8%
Kirkland Lake Gold Ltd3.8%
Brightsphere Investment Group3.8%
National CineMedia Inc3.6%
Superior Plus Corp3.6%
Amkor Technology Inc3.6%
Photronics Inc3.6%
Hollysys Automation Technologies3.5%
Malibu Boats Inc3.5%
Waddell & Reed Financial Inc3.5%
Scholastic Corp3.5%
Gran Colombia Gold Corp3.5%
MEDNAX Inc3.4%
Geopark Ltd3.4%
Triumph Group Inc3.4%
USANA Health Sciences Inc3.3%
Quanex Building Products Corp3.3%
GrafTech International Ltd3.3%
BorgWarner Inc3.2%
Universal Technical Institutes2.9%
Deluxe Corp2.9%
Ingredion Inc2.9%
Hanesbrands Inc2.9%
Verso Corp2.8%
Ituran Location and Control Ltd2.8%
TriCo Bancshares2.7%
Miller Industries Inc2.7%
Autoliv Inc2.6%
HNI Corp2.5%
Arch Coal Inc2.5%
DMC Global Inc2.4%
Recro Pharma Inc2.3%

 

Short Security NameWeight
S&P 500 Index Futures-26.9%
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