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-Aug-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
ALFA1.5%1.8%-21.2%-10.1%n/a-30.8%

Fund Characteristics as of 2020-Aug-31

Long Short
Number of Securities451
Average Market Cap ($mm)$1,302$63,492
Beta1.1 1.0
EBITDA/EV22.0%6.0%
Gross Profits/Assets9.5%6.4%
Change in Debt-12.0%3.9%
Return on Capital12.1%17.3%
Change in Assets-3.8%4.9%

Sector Weightings as of 2020-Aug-31

Long Short
Communication Services9.2%-3.3%
Consumer Discretionary21.9%-3.4%
Consumer Staples9.3%-2.1%
Energy19.5%-0.7%
Financials11.5%-2.9%
Health Care6.1%-4.2%
Industrials14.6%-2.4%
Information Technology22.0%-8.6%
Materials11.7%-0.7%
Real Estate0.0%-0.8%
Utilities6.4%-0.8%
Equity Exposure132.2%-29.8%

Fund Holdings as of 2020-Aug-31

LongWeight
Canadian Solar Inc4.2%
Lands End Inc3.9%
ODP Corp3.7%
Lifevantage Corp3.4%
NetApp Inc3.3%
Spark Energy Inc3.3%
Superior Group of Cos Inc3.2%
Xerox Holdings Corp3.2%
Copa Holdings SA3.2%
Perion Network Ltd3.2%
Tribune Publishing Co3.2%
B2Gold Corp3.2%
Five Star Senior Living Inc3.2%
Superior Plus Corp3.1%
LCNB Corp3.1%
Waddell & Reed Financial Inc3.1%
Pason Systems Inc3.0%
Natures Sunshine Products Inc3.0%
Parex Resources Inc3.0%
Torex Gold Resources Inc3.0%
Ituran Location and Control Ltd3.0%
HNI Corp3.0%
Diebold Nixdorf Inc3.0%
Catalyst Pharmaceuticals Inc3.0%
MarineMax Inc2.9%
Orion Engineered Carbons SA2.9%
GrafTech International Ltd2.8%
Edgewell Personal Care Co2.8%
Lakeland Industries Inc2.8%
Deluxe Corp2.8%
DHT Holdings Inc2.8%
Permian Basin Royalty Trust2.8%
MSG Networks Inc2.8%
Photronics Inc2.8%
Interface Inc2.7%
Euronav NV2.7%
TriCo Bancshares2.7%
Tredegar Corp2.7%
Universal Electronics Inc2.7%
Enerplus Corp2.7%
LendingClub Corp2.7%
NeoPhotonics Corp2.6%
Teekay Tankers Ltd2.5%
Smith & Wesson Brands Inc2.2%
American Outdoor Brands Inc0.5%

 

Short Security NameWeight
S&P 500 Index Futures-29.7%
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