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

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-Mar-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGEn/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 Securities4738
Average Market Cap ($mm)$94,539$1,089
Beta 1.11.0
EBITDA/EV11.0%3.9%
FCF/EV7.0%-7.5%
Trailing Return27.6%-38.5%
Pct of 52 Week High70.9%40.3%
Return on Capital21.8%-5.1%
Gross Profits/Assets10.3%4.9%
50 DMA to 200 DMA105.6%78.3%
EPS Revision-4.4%0.5%
Change In Shares-1.9%5.8%
Earnings Abnormal Return3.6%-8.7%

Sector Weightings as of 2020-Mar-31

LongShort
Communication Services5.7%0.0%
Consumer Discretionary13.9%-6.9%
Consumer Staples7.2%0.0%
Energy3.3%-1.3%
Financials16.1%-7.0%
Health Care13.8%-4.7%
Industrials18.6%-6.5%
Information Technology20.5%-11.0%
Materials5.9%-3.4%
Real Estate1.7%-0.7%
Utilities0.0%0.0%
Equity Exposure106.7%-41.7%

Fund Holdings as of 2020-Mar-31

Long Security NameWeight
Cable One Inc3.2%
Mettler-Toledo International Inc3.0%
Mastech Digital Inc2.9%
Humana Inc2.9%
UnitedHealth Group Inc2.9%
Procter & Gamble Co2.9%
Old Dominion Freight Line Inc2.8%
Microsoft Corp2.8%
Cirrus Logic Inc2.8%
S&P Global Inc2.7%
Intel Corp2.7%
Cerner Corp2.6%
Apple Inc2.6%
MagnaChip Semiconductor Corp2.6%
Charter Communications Inc2.6%
Moodys Corp2.6%
Carlisle Cos Inc2.6%
Illinois Tool Works Inc2.5%
Reliance Steel & Aluminum Co2.5%
Commercial Metals Co2.5%
Helen of Troy Ltd2.5%
Lam Research Corp2.4%
Victory Capital Holdings Inc2.4%
Royal Bank of Canada2.4%
Bruker Corp2.4%
Masco Corp2.3%
Applied Materials Inc2.3%
Simpson Manufacturing Co Inc2.3%
Deckers Outdoor Corp2.3%
HomeStreet Inc2.3%
Synaptics Inc2.2%
Alimentation Couche-Tard Inc2.2%
Lifevantage Corp2.1%
Fortune Brands Home & Security2.0%
Ameriprise Financial Inc1.9%
DR Horton Inc1.9%
Parex Resources Inc1.8%
CI Financial Corp1.8%
Colliers International Group Inc1.7%
Canadian Tire Corp Ltd1.7%
Universal Technical Institute1.7%
RH1.5%
Texas Pacific Land Trust1.5%
Gentex Corp1.2%
BRP Inc1.2%
Hardwoods Distribution Inc1.2%
Alacer Gold Corp0.9%

 

Short Security NameWeight
OptimizeRx Corp-1.9%
Liquidity Services Inc-1.7%
United Insurance Holdings Corp-1.7%
VirnetX Holding Corp-1.7%
International Money Express Inc-1.7%
James River Group Holdings Ltd-1.5%
Pacific Biosciences of California-1.5%
Twin Disc Inc-1.5%
Grubhub Inc-1.5%
Twilio Inc-1.4%
Cree Inc-1.4%
Graham Corp-1.3%
Immersion Corp-1.3%
Fluidigm Corp-1.3%
Republic First Bancorp Inc-1.2%
Titan International Inc-1.2%
GoPro Inc-1.2%
Canfor Pulp Products Inc-1.2%
Lovesac Co-1.2%
Synchronoss Technologies Inc-1.1%
Zuora Inc-1.0%
Eagle Bulk Shipping Inc-1.0%
Virtu Financial Inc-0.9%
DASAN Zhone Solutions Inc-0.9%
Tidewater Inc-0.9%
BOK Financial Corp-0.8%
Nexa Resources SA-0.8%
Astronics Corp-0.8%
Carrols Restaurant Group Inc-0.8%
Park Hotels & Resorts Inc-0.7%
Rayonier Advanced Materials Inc-0.7%
Contura Energy Inc-0.7%
Ag Growth International Inc-0.7%
At Home Group Inc-0.7%
Plantronics Inc-0.5%
Colony Credit Real Estate Inc-0.5%
Pacific Drilling SA-0.5%
AG Mortgage Investment Trust Inc-0.3%
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