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

Reference Portfolio Performance

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 2020-Jul-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGE4.9%9.8%2.3%-12.2%n/a-8.7%

Fund Characteristics as of 2020-Jul-31

LongShort
Number of Securities5051
Average Market Cap ($mm)$49,423$1,433
Beta1.11.4
EBITDA/EV10.6%-2.3%
FCF/EV6.0%-4.7%
Trailing Return25.1%-35.2%
Pct of 52 Week High89.9%61.0%
Return on Capital16.8%-14.6%
Gross Profits/Assets7.8%3.3%
50 DMA to 200 DMA107.1%91.2%
EPS Revision9.3%3.8%
Change In Shares-0.4%6.3%
Earnings Abnormal Return2.0%1.1%

Sector Weightings as of 2020-Jul-31

LongShort
Communication Services4.4%-1.5%
Consumer Discretionary18.0%-7.7%
Consumer Staples10.9%-1.3%
Energy0.0%-1.9%
Financials13.1%-7.1%
Health Care6.9%-5.5%
Industrials18.5%-6.9%
Information Technology17.8%-7.4%
Materials16.1%-6.9%
Real Estate4.4%-0.8%
Utilities2.3%0.0%
Equity Exposure112.3%-47.1%

Fund Holdings as of 2020-Jul-31

Long Security NameWeight
Synaptics Inc2.6%
Photon Control Inc2.6%
Boise Cascade Co2.6%
Simpson Manufacturing Co Inc2.5%
DR Horton Inc2.5%
Universal Technical Institute2.4%
Masco Corp2.4%
Fortune Brands Home & Security2.4%
Well Health Technologies Corp2.4%
Copart Inc2.4%
Dundee Precious Metals Inc2.4%
Bruker Corp2.4%
RH2.4%
MagnaChip Semiconductor Corp2.4%
HomeStreet Inc2.3%
Torex Gold Resources Inc2.3%
BRP Inc2.3%
Real Matters Inc2.3%
Deckers Outdoor Corp2.3%
T Rowe Price Group Inc2.3%
Procter & Gamble Co2.3%
Northland Power Inc2.3%
Cirrus Logic Inc2.3%
Gentex Corp2.3%
Empire Co Ltd2.2%
Reliance Steel & Aluminum Co2.2%
Quebecor Inc2.2%
Illinois Tool Works Inc2.2%
Applied Materials Inc2.2%
CI Financial Corp2.2%
Sirius XM Holdings Inc2.2%
Old Dominion Freight Line Inc2.2%
Alimentation Couche-Tard Inc2.2%
Ameriprise Financial Inc2.2%
FMC Corp2.2%
Carlisle Cos Inc2.2%
Cascades Inc2.2%
Commercial Metals Co2.2%
Loblaw Cos Ltd2.2%
Stantec Inc2.1%
Moodys Corp2.1%
DREAM Unlimited Corp2.1%
Cerner Corp2.1%
Microsoft Corp2.1%
Quarterhill Inc2.1%
Lifevantage Corp2.0%
Helen of Troy Ltd2.0%
SEI Investments Co2.0%
Exco Technologies Ltd2.0%
Intel Corp1.7%

 

Short Security NameWeight
At Home Group Inc-1.9%
New Age Beverages Corp-1.3%
Arlo Technologies Inc-1.3%
Fluidigm Corp-1.1%
ViewRay Inc-1.1%
Carrols Restaurant Group Inc-1.1%
Farfetch Ltd-1.1%
Tidewater Inc-1.0%
Century Aluminum Co-1.0%
New Residential Investment Corp-1.0%
Cree Inc-1.0%
Immersion Corp-1.0%
Ag Growth International Inc-1.0%
OneSpaWorld Holdings Ltd-0.9%
PennyMac Mortgage Investment Trust-0.9%
Trilogy Metals Inc-0.9%
Graham Corp-0.9%
International Money Express Inc-0.9%
Quad/Graphics Inc-0.9%
Synchronoss Technologies Inc-0.9%
Playa Hotels & Resorts NV-0.9%
GoPro Inc-0.9%
Upwork Inc-0.9%
Colony Credit Real Estate Inc-0.9%
OptimizeRx Corp-0.9%
Lyft Inc-0.9%
Livent Corp-0.9%
Ready Capital Corp-0.9%
James River Group Holdings Ltd-0.9%
Liquidity Services Inc-0.9%
Greenlight Capital Re Ltd-0.9%
Eventbrite Inc-0.9%
Digimarc Corp-0.9%
Cimarex Energy Co-0.9%
United Airlines Holdings Inc-0.8%
Nexa Resources SA-0.8%
Stelco Holdings Inc-0.8%
Bain Capital Specialty Finance-0.8%
Pacific Biosciences of Califor-0.8%
United Insurance Holdings Corp-0.8%
Zuora Inc-0.8%
Canfor Pulp Products Inc-0.8%
Apyx Medical Corp-0.8%
Cleveland-Cliffs Inc-0.8%
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