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 2020-Dec-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
ALFA6.6%19.7%-7.6%-7.6%n/a-11.8%

Fund Characteristics as of 2020-Dec-31

Long Short
Number of Securities441
Average Market Cap ($mm)$1,594$65,992
Beta1.11.0
EBITDA/EV17.2%5.9%
Gross Profits/Assets10.8%6.7%
Change in Debt-23.2%5.8%
Return on Capital15.9%16.4%
Change in Assets-3.3%5.0%

Sector Weightings as of 2020-Dec-31

Long Short
Communication Services9.8%-3.1%
Consumer Discretionary21.6%-3.2%
Consumer Staples5.3%-1.9%
Energy13.1%-0.6%
Financials8.1%-2.9%
Health Care11.3%-3.8%
Industrials20.9%-2.4%
Information Technology21.4%-7.7%
Materials10.6%-0.7%
Real Estate0.0%-0.7%
Utilities5.2%-0.8%
Equity Exposure127.2%-27.9%

Fund Holdings as of 2020-Dec-31

LongWeight
Lakeland Industries Inc3.7%
MSG Networks Inc3.4%
Avid Technology Inc3.3%
NETGEAR Inc3.3%
BlueLinx Holdings Inc3.3%
AMC Networks Inc3.3%
Smith & Wesson Brands Inc3.2%
Tribune Publishing Co3.2%
Apogee Enterprises Inc3.1%
MarineMax Inc3.1%
First Solar Inc3.1%
Centerra Gold Inc3.1%
Mueller Industries Inc3.1%
Deluxe Corp3.1%
ODP Corp/The3.0%
NeoPhotonics Corp3.0%
Arrow Electronics Inc3.0%
Emergent BioSolutions Inc3.0%
SIGA Technologies Inc2.9%
GrafTech International Ltd2.9%
Superior Group of Cos Inc2.9%
Lands End Inc2.9%
Tivity Health Inc2.9%
L B Foster Co2.8%
Diebold Nixdorf Inc2.8%
Teradata Corp2.8%
North West Co Inc/The2.8%
Euronav NV2.8%
DHT Holdings Inc2.8%
B2Gold Corp2.8%
LCNB Corp2.7%
Donnelley Financial Solutions2.7%
Just Energy Group Inc2.7%
Torex Gold Resources Inc2.7%
Universal Electronics Inc2.6%
Teekay Tankers Ltd2.6%
HNI Corp2.6%
Nordic American Tankers Ltd2.6%
Crawford & Co2.6%
Patterson Cos Inc2.5%
Genie Energy Ltd2.5%
Lifevantage Corp2.5%
Teekay Corp2.4%
Tredegar Corp2.0%

 

Short Security NameWeight
S&P 500 Index Futures-29.5%
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