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-May-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGE5.4%7.5%9.1%3.3%n/a-7.3%

Fund Characteristics as of 2021-May-31

Long Short
Number of Securities4743
Average Market Cap ($mm)$51,188$2,568
Beta1.2 1.2
EBITDA/EV13.5%-3.0%
FCF/EV10.5%-7.3%
Trailing Return183.0%33.0%
Pct of 52 Week High91.3%73.0%
Return on Capital23.3%-17.1%
Gross Profits/Assets8.7%2.5%
50 DMA to 200 DMA127.9%101.2%
EPS Revision11.9%3.9%
Change In Shares1.4%13.2%
Earnings Abnormal Return1.2%0.0%

Sector Weightings as of 2021-May-31

Long Short
Communication Services9.3%-0.9%
Consumer Discretionary17.4%-3.7%
Consumer Staples4.5%-0.9%
Energy9.3%-4.9%
Financials15.4%-0.9%
Health Care1.7%-8.5%
Industrials16.0%-4.0%
Information Technology12.4%-6.9%
Materials14.6%-6.8%
Real Estate0.0%-1.0%
Utilities0.0%-2.1%
Equity Exposure100.6%-40.5%

Fund Holdings as of 2021-May-31

Long Security NameWeight
Cambium Networks Corp3.2%
Helen of Troy Ltd2.8%
DR Horton Inc2.7%
Hardwoods Distribution Inc2.6%
AcuityAds Holdings Inc2.5%
IBI Group Inc2.5%
Microsoft Corp2.5%
Sirius XM Holdings Inc2.5%
Lithia Motors Inc2.5%
Cascades Inc2.4%
T Rowe Price Group Inc2.4%
Avino Silver & Gold Mines Ltd2.4%
Cerner Corp2.4%
Sciplay Corp2.4%
Masco Corp2.4%
Quarterhill Inc2.3%
Fortune Brands Home & Security2.3%
HomeStreet Inc2.3%
Empire Co Ltd2.3%
BRP Inc2.3%
Applied Materials Inc2.3%
Moodys Corp2.3%
Parex Resources Inc2.3%
Donnelley Financial Solutions2.3%
Ameriprise Financial Inc2.3%
CI Financial Corp2.3%
Loblaw Cos Ltd2.3%
Old Dominion Freight Line Inc2.3%
Quebecor Inc2.3%
Boise Cascade Co2.3%
Northland Power Inc2.3%
Carlisle Cos Inc2.2%
Lifevantage Corp2.2%
Illinois Tool Works Inc2.2%
Procter & Gamble Co/The2.2%
Alimentation Couche-Tard Inc2.2%
Commercial Metals Co2.2%
FMC Corp2.2%
Simpson Manufacturing Co Inc2.2%
Gentex Corp2.1%
Dundee Precious Metals Inc2.1%
Reliance Steel & Aluminum Co2.1%
Deckers Outdoor Corp2.1%
Torex Gold Resources Inc2.1%
Real Matters Inc2.0%
Teradyne Inc2.0%

 

Short Security NameWeight
VirnetX Holding Corp-1.2%
Apyx Medical Corp-1.2%
Red Robin Gourmet Burgers Inc-1.2%
Sientra Inc-1.1%
Flotek Industries Inc-1.1%
Spirit Airlines Inc-1.0%
Misonix Inc-1.0%
Howard Hughes Corp/The-1.0%
Dave & Busters Entertainment-1.0%
Trilogy Metals Inc-1.0%
LiveXLive Media Inc-1.0%
Hawaiian Holdings Inc-1.0%
OneSpaWorld Holdings Ltd-1.0%
Chimera Investment Corp-1.0%
Delek US Holdings Inc-1.0%
SP Plus Corp-1.0%
Redwood Trust Inc-1.0%
Zuora Inc-1.0%
Paysign Inc-1.0%
Park Hotels & Resorts Inc-1.0%
Viad Corp-1.0%
Eventbrite Inc-1.0%
Ready Capital Corp-1.0%
Western Asset Mortgage Capital-0.9%
Carrols Restaurant Group Inc-0.9%
Delta Air Lines Inc-0.9%
Teck Resources Ltd-0.9%
Playa Hotels & Resorts NV-0.9%
Norwegian Cruise Line Holdings-0.9%
United Airlines Holdings Inc-0.9%
Coty Inc-0.9%
SilverCrest Metals Inc-0.9%
Contango Oil & Gas Co-0.9%
Cimarex Energy Co-0.9%
Ramaco Resources Inc-0.9%
Heritage Commerce Corp-0.9%
Lyft Inc-0.9%
Osisko Mining Inc-0.9%
Air Canada-0.9%
Tidewater Inc-0.9%
Ambac Financial Group Inc-0.9%
NexTier Oilfield Solutions Inc-0.9%
Spirit AeroSystems Holdings In-0.8%
Eagle Bulk Shipping Inc-0.8%
ViewRay Inc-0.8%
Digimarc Corp-0.8%
eHealth Inc-0.7%
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