Accelerate Absolute Return Hedge Fund

About the Fund

The Accelerate Absolute Return Hedge Fund (TSX: HDGE) is a diversified, liquid, and performance-oriented long-short equity hedge fund that seeks to achieve long-term capital appreciation and a superior risk-adjusted return relative to the broader U.S. equity market.

Investment Objectives

  • Target 10-15% annualized returns
  • Generate positive returns irrespective of market direction
  • Hedge downside risk
  • Manage volatility
  • Provide uncorrelated returns
QUICK FACTS

Type:
Long-short equity

Structure:
Alternative ETF

Date Started:
May 10, 2019

Management Fee:
0.00%

Performance Fee:
20% of outperformance over high water mark

Investment Manager:
Accelerate Financial Technologies Inc.

Distribution:
$0.10 per quarter

Exchange:
TSX

Currency:
CAD

Risk Rating:
Medium

Historical Track Record

Investment Process

HDGE utilizes a systematic, proprietary multi-factor model to sort and rank all liquid North American stocks based on five principal factors:
  1. Value
  2. Quality
  3. Price Momentum
  4. Operating Momentum
  5. Trend

The Fund goes long a portfolio of the highest expected return stocks selected from the top decile ranking from the multi-factor model while going short a portfolio of the lowest expected return stocks selected from the bottom decile ranking. The portfolio is rebalanced on a monthly basis.

Performance as of 2021-Mar-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGE4.7%3.5%3.5%1.9%n/a-10.0%

Fund Characteristics as of 2021-Mar-31

Long Short
Number of Securities4644
Average Market Cap ($mm)$59,731$2,738
Beta1.11.4
EBITDA/EV11.9%-2.3%
FCF/EV8.2%-6.9%
Trailing Return192.0%98.6%
Pct of 52 Week High90.2%76.4%
Return on Capital20.1%-18.2%
Gross Profits/Assets8.8%2.4%
50 DMA to 200 DMA119.7%119.7%
EPS Revision3.1%-2.1%
Change In Shares-1.0%8.1%
Earnings Abnormal Return1.3%-2.2%

Sector Weightings as of 2021-Mar-31

Long Short
Communication Services9.1%-1.1%
Consumer Discretionary14.5%-4.8%
Consumer Staples12.3%-1.1%
Energy4.6%-4.8%
Financials13.6%-5.3%
Health Care4.8%-6.0%
Industrials21.6%-6.7%
Information Technology13.8%-6.1%
Materials13.9%-6.7%
Real Estate0.0%0.0%
Utilities0.0%0.0%
Equity Exposure108.2%-42.7%

Fund Holdings as of 2021-Mar-31

Long Security NameWeight
BRP Inc2.8%
Hardwoods Distribution Inc2.6%
Sprouts Farmers Market Inc2.6%
Full House Resorts Inc2.5%
Old Dominion Freight Line Inc2.5%
Fortune Brands Home & Security2.5%
Empire Co Ltd2.5%
DR Horton Inc2.5%
Loblaw Cos Ltd2.5%
Boise Cascade Co2.5%
Viemed Healthcare Inc2.5%
Masco Corp2.4%
Applied Materials Inc2.4%
Procter & Gamble Co/The2.4%
Carlisle Cos Inc2.4%
Illinois Tool Works Inc2.4%
CI Financial Corp2.4%
Interfor Corp2.4%
Moodys Corp2.4%
Reliance Steel & Aluminum Co2.4%
Euronav NV2.4%
Sciplay Corp2.4%
Pretium Resources Inc2.4%
Sirius XM Holdings Inc2.4%
Cerner Corp2.4%
Microsoft Corp2.3%
Commercial Metals Co2.3%
Photon Control Inc2.3%
Dundee Precious Metals Inc2.3%
Pzena Investment Management In2.3%
Quebecor Inc2.3%
Gentex Corp2.3%
Alimentation Couche-Tard Inc2.3%
Linamar Corp2.3%
Cambium Networks Corp2.3%
T Rowe Price Group Inc2.3%
Donnelley Financial Solutions2.2%
Parex Resources Inc2.2%
Quarterhill Inc2.2%
Teradyne Inc2.2%
Taiga Building Products Ltd2.1%
Helen of Troy Ltd2.1%
Cascades Inc2.1%
AcuityAds Holdings Inc2.0%
Primoris Services Corp2.0%
Manning & Napier Inc2.0%

 

Short Security NameWeight
Heritage Commerce Corp-1.2%
Limelight Networks Inc-1.2%
Coty Inc-1.1%
Anterix Inc-1.1%
Compugen Ltd-1.1%
eHealth Inc-1.1%
SilverCrest Metals Inc-1.1%
United Airlines Holdings Inc-1.1%
Novagold Resources Inc-1.1%
Red Robin Gourmet Burgers Inc-1.1%
Spirit Airlines Inc-1.1%
Osisko Mining Inc-1.0%
PDF Solutions Inc-1.0%
Chimera Investment Corp-1.0%
Vapotherm Inc-1.0%
GreenSky Inc-1.0%
ARMOUR Residential REIT Inc-1.0%
Misonix Inc-1.0%
Paysign Inc-1.0%
ViewRay Inc-1.0%
Dave & Busters Entertainment-1.0%
Guardant Health Inc-1.0%
Digimarc Corp-1.0%
Playa Hotels & Resorts NV-1.0%
Ready Capital Corp-1.0%
Delta Air Lines Inc-0.9%
Hawaiian Holdings Inc-0.9%
Spirit AeroSystems Holdings In-0.9%
Mammoth Energy Services Inc-0.9%
MAG Silver Corp-0.9%
OneSpaWorld Holdings Ltd-0.9%
SP Plus Corp-0.9%
Quotient Ltd-0.9%
Ramaco Resources Inc-0.9%
PROS Holdings Inc-0.9%
Arco Platform Ltd-0.9%
Carpenter Technology Corp-0.9%
Peabody Energy Corp-0.8%
Tidewater Inc-0.8%
Viad Corp-0.8%
Evolution Petroleum Corp-0.8%
Contango Oil & Gas Co-0.8%
Flotek Industries Inc-0.7%
NexTier Oilfield Solutions Inc-0.7%
EXPLORE OTHER INVESTMENT SOLUTIONS