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 2020-Mar-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 2020-Mar-31

LongShort
Number of Securities381
Average Market Cap ($mm)$1,392$46,824
Beta 1.2 1.0
EBITDA/EV25.8%8.9%
Gross Profits/Assets9.9%6.9%
Change in Debt-9.4%2.6%
Return on Capital15.8%18.2%
Change in Assets2.0%2.7%

Sector Weightings as of 2020-Mar-31

LongShort
Communication Services7.8%-3.2%
Consumer Discretionary14.9%-2.9%
Consumer Staples14.2%-2.3%
Energy15.7%-0.8%
Financials15.9%-3.2%
Health Care12.6%-4.6%
Industrials15.3%-2.4%
Information Technology16.2%-7.6%
Materials15.2%-0.7%
Real Estate0.0%-0.9%
Utilities8.2%-1.1%
Equity Exposure136.0%-29.6%

Fund Holdings as of 2020-Mar-31

LongWeight
Molina Healthcare Inc6.3%
Triumph Group Inc5.5%
Superior Plus Corp4.8%
Hollysys Automation Technologies4.7%
Seneca Foods Corp4.1%
Gran Colombia Gold Corp4.1%
Canacol Energy Ltd4.1%
Lifevantage Corp4.1%
Kirkland Lake Gold Ltd4.1%
Harmonic Inc4.0%
National CineMedia Inc4.0%
Photronics Inc4.0%
TriCo Bancshares3.9%
W&T Offshore Inc3.9%
Scholastic Corp3.8%
Nu Skin Enterprises Inc3.7%
GrafTech International Ltd3.7%
Torex Gold Resources Inc3.6%
Hamilton Beach Brands Holding Co3.6%
Amkor Technology Inc3.6%
MasterCraft Boat Holdings Inc3.5%
Brightsphere Investment Group3.4%
Spark Energy Inc3.4%
Verso Corp3.4%
Waddell & Reed Financial Inc3.3%
MEDNAX Inc3.3%
Northeast Bank3.2%
RR Donnelley & Sons Co3.1%
Lexicon Pharmaceuticals Inc3.1%
Quanex Building Products Corp3.0%
Parex Resources Inc2.8%
Dillards Inc2.7%
Arch Coal Inc2.6%
Universal Technical Institute2.6%
BorgWarner Inc2.5%
Geopark Ltd2.3%
Ingredion Inc2.2%
BankFinancial Corp2.1%

 

Short Security NameWeight
S&P 500 Index Futures-29.7%
EXPLORE OTHER INVESTMENT SOLUTIONS