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-Oct-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-Oct-31

Long Short
Number of Securities33505
Average Market Cap ($mm)$1,259$54,874
Beta 1.0 1.0
EBITDA/EV23.9%7.6%
Gross Profits/Assets8.5%6.1%
Change in Debt-2.9%2.8%
Return on Capital20.5%17.0%
Change in Assets1.6%2.9%

Sector Weightings as of 2019-Oct-31

Long Short
Communication Services15.2%-3.2%
Consumer Discretionary16.4%-3.1%
Consumer Staples0.0%-2.3%
Energy15.6%-1.3%
Financials16.7%-4.0%
Health Care16.2%-4.3%
Industrials17.2%-2.9%
Information Technology16.8%-6.9%
Materials15.4%-0.8%
Real Estate4.3%-1.0%
Utilities0.0%-1.1%
Total Equities133.9%-31.0%

Fund Holdings as of 2019-Oct-31

LongWeight
RR Donnelley & Sons Co4.8%
Hamilton Beach Brands Holding4.8%
Green Dot Corp4.8%
Vishay Intertechnology Inc4.6%
Perion Network Ltd4.5%
Navistar International Corp4.5%
KEMET Corp4.5%
Premier Inc4.5%
RE/MAX Holdings Inc4.3%
Torex Gold Resources Inc4.2%
Tribune Publishing Co4.1%
Arch Coal Inc4.1%
Triumph Group Inc4.0%
Molina Healthcare Inc4.0%
Quarterhill Inc4.0%
Geopark Ltd4.0%
Chemung Financial Corp4.0%
Lands End Inc4.0%
Waddell & Reed Financial Inc4.0%
First Community Bankshares Inc4.0%
FONAR Corp3.9%
Warrior Met Coal Inc3.9%
Dorel Industries Inc3.9%
GrafTech International Ltd3.8%
CRH Medical Corp3.8%
Orca Exploration Group Inc3.8%
Points International Ltd3.8%
Parex Resources Inc3.7%
Gran Colombia Gold Corp3.7%
Canadian Solar Inc3.6%
ERO Copper Corp3.6%
Lee Enterprises Inc3.6%
IDT Corp3.0%

 

Short Security NameWeight
S&P 500 Index Futures-30.9%
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