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-Sep-30

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGE0.2%-0.1%-2.5%-11.8%n/a-12.9%

Fund Characteristics as of 2020-Sep-30

Long Short
Number of Securities4953
Average Market Cap ($mm)$55,602$3,498
Beta1.11.5
EBITDA/EV12.2%-1.7%
FCF/EV8.9%-4.8%
Trailing Return32.9%-18.5%
Pct of 52 Week High86.7%56.6%
Return on Capital18.6%-15.8%
Gross Profits/Assets7.8%2.2%
50 DMA to 200 DMA111.7%97.6%
EPS Revision3.3%4.9%
Change In Shares-0.8%8.1%
Earnings Abnormal Return2.3%0.5%

Sector Weightings as of 2020-Sep-30

Long Short
Communication Services4.4%-1.7%
Consumer Discretionary20.4%-8.2%
Consumer Staples11.3%-0.9%
Energy1.9%-2.5%
Financials15.6%-6.8%
Health Care2.3%-6.0%
Industrials18.0%-6.8%
Information Technology13.8%-5.4%
Materials15.8%-6.3%
Real Estate4.6%-1.7%
Utilities2.5%0.0%
Equity Exposure110.6%-46.3%

Fund Holdings as of 2020-Sep-30

Long Security NameWeight
BRP Inc2.8%
Hardwoods Distribution Inc2.6%
Lifevantage Corp2.5%
DREAM Unlimited Corp2.5%
Exco Technologies Ltd2.5%
Moodys Corp2.4%
Microsoft Corp2.4%
Old Dominion Freight Line Inc2.4%
RH2.3%
Well Health Technologies Corp2.3%
Fortune Brands Home & Security2.3%
Intel Corp2.3%
Procter & Gamble Co2.3%
Carlisle Cos Inc2.3%
Helen of Troy Ltd2.3%
DR Horton Inc2.3%
Boise Cascade Co2.3%
Waddell & Reed Financial Inc2.3%
Dundee Precious Metals Inc2.3%
Quebecor Inc2.3%
Illinois Tool Works Inc2.3%
Cerner Corp2.3%
Masco Corp2.2%
Northland Power Inc2.2%
T Rowe Price Group Inc2.2%
Empire Co Ltd2.2%
Gentex Corp2.2%
SEI Investments Co2.2%
Synaptics Inc2.2%
Stantec Inc2.2%
MagnaChip Semiconductor Corp2.2%
Loblaw Cos Ltd2.2%
CI Financial Corp2.2%
Reliance Steel & Aluminum Co2.2%
Sirius XM Holdings Inc2.2%
Simpson Manufacturing Co Inc2.2%
Ameriprise Financial Inc2.2%
FMC Corp2.2%
Cascades Inc2.2%
Cirrus Logic Inc2.1%
Alimentation Couche-Tard Inc2.1%
Torex Gold Resources Inc2.1%
HomeStreet Inc2.1%
Applied Materials Inc2.1%
Deckers Outdoor Corp2.1%
Photon Control Inc2.1%
Commercial Metals Co2.0%
Universal Technical Institute2.0%
Real Matters Inc1.9%

 

Short Security NameWeight
Pacific Biosciences of California-1.2%
Synchronoss Technologies Inc-1.1%
Cooper-Standard Holdings Inc-1.0%
OptimizeRx Corp-1.0%
At Home Group Inc-1.0%
Liquidity Services Inc-1.0%
Viad Corp-1.0%
Livent Corp-1.0%
Zuora Inc-1.0%
OneSpaWorld Holdings Ltd-1.0%
Immersion Corp-1.0%
Stelco Holdings Inc-1.0%
Farfetch Ltd-1.0%
Red Robin Gourmet Burgers Inc-1.0%
Ag Growth International Inc-1.0%
Eventbrite Inc-0.9%
Cleveland-Cliffs Inc-0.9%
James River Group Holdings Ltd-0.9%
Ready Capital Corp-0.9%
Playa Hotels & Resorts-0.9%
Fluidigm Corp-0.9%
Upwork Inc-0.9%
Trilogy Metals Inc-0.9%
Teck Resources Ltd-0.9%
Digimarc Corp-0.9%
Nexa Resources SA-0.9%
Howard Hughes Corp-0.9%
VirnetX Holding Corp-0.9%
Sanderson Farms Inc-0.9%
Spirit Airlines Inc-0.9%
Western Asset Mortgage Capital-0.8%
Park Hotels & Resorts Inc-0.8%
United Airlines Holdings Inc-0.8%
Lyft Inc-0.8%
Carrols Restaurant Group Inc-0.8%
Greenlight Capital Re Ltd-0.8%
Arlo Technologies Inc-0.8%
Hawaiian Holdings Inc-0.8%
Misonix Inc-0.8%
Nordstrom Inc-0.8%
Cimarex Energy Co-0.8%
Spirit AeroSystems Holdings In-0.8%
PennyMac Mortgage Investment T-0.8%
New Residential Investment Corp-0.8%
Tidewater Inc-0.8%
Colony Credit Real Estate Inc-0.8%
Canfor Pulp Products Inc-0.8%
Apyx Medical Corp-0.8%
Ambac Financial Group Inc-0.7%
LiveXLive Media Inc-0.7%
Cree Inc-0.7%
United Insurance Holdings Corp-0.7%
ViewRay Inc-0.7%
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