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 Frequency:
Quarterly

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 2019-Aug-30

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 2019-Aug-30

Long Short
Number of Securities4746
Average Market Cap ($mm)$29,122$1,405
Beta 0.9 1.2
EBITDA/EV8.4%-21.7%
FCF/EV5.1%-19.1%
Trailing Return48.1%-55.2%
Pct of 52 Week High95.8%35.1%
Return on Capital26.9%-27.7%
Gross Profits/Assets10.0%3.7%
50 DMA to 200 DMA120.7%72.5%
EPS Revision2.3%-7.6%
Change In Shares-2.6%24.6%
Earnings Abnormal Return8.1%-11.9%

Sector Weightings as of 2019-Aug-30

Long Short
Communication Services10.9%-1.2%
Consumer Discretionary16.2%-6.9%
Consumer Staples10.2%0.0%
Energy2.5%-8.3%
Financials10.2%0.0%
Health Care15.7%-12.1%
Industrials19.4%-7.8%
Information Technology20.2%-10.7%
Materials6.9%0.0%
Real Estate0.0%-1.3%
Utilities0.0%0.0%
Total Equities112.3%-48.2%

Fund Holdings as of 2019-Aug-30

Long Security NameWeight
Anika Therapeutics Inc3.3%
Perion Network Ltd3.0%
Cable One Inc3.0%
Manhattan Associates Inc2.9%
MarketAxess Holdings Inc2.8%
Collectors Universe Inc2.8%
The Hershey Co2.8%
The Boston Beer Co Inc2.8%
Starbucks Corp2.7%
Lithia Motors Inc2.6%
Lockheed Martin Corp2.6%
S&P Global Inc2.6%
FleetCor Technologies Inc2.6%
IDEXX Laboratories Inc2.6%
Coca-Cola Consolidated Inc2.5%
Cintas Corp2.5%
Texas Instruments Inc2.5%
The Sherwin-Williams Co2.5%
MasTec Inc2.5%
Asbury Automotive Group Inc2.5%
World Fuel Services Corp2.5%
Edwards Lifesciences Corp2.5%
Teradyne Inc2.5%
Merck & Co Inc2.5%
Northrop Grumman Corp2.5%
BMC Stock Holdings Inc2.5%
Moodys Corp2.5%
Chemed Corp2.5%
Cogeco Communications Inc2.5%
Cogeco Inc2.5%
Carlisle Cos Inc2.4%
Gran Colombia Gold Corp2.4%
Fair Isaac Corp2.4%
Aspen Technology Inc2.4%
Builders FirstSource Inc2.4%
Sleep Number Corp2.3%
Enphase Energy Inc2.3%
Victory Capital Holdings Inc2.3%
High Liner Foods Inc2.1%
H&R Block Inc2.1%
Cisco Systems Inc2.0%
Kirkland Lake Gold Ltd2.0%
Delta Air Lines Inc1.9%
Cerner Corp1.2%
Yum! Brands Inc1.2%
STERIS PLC1.0%
GlobalSCAPE Inc0.6%

 

Short Security NameWeight
Pivotal Software Inc-2.0%
Cloudera Inc-1.6%
2U Inc-1.5%
Cornerstone Building Brands Inc-1.4%
Foamix Pharmaceuticals Ltd-1.3%
Concho Resources Inc-1.3%
Conduent Inc-1.3%
Babcock & Wilcox Enterprises -1.3%
Office Properties Income Trust-1.3%
Limelight Networks Inc-1.2%
Antero Midstream Corp-1.2%
Replimune Group Inc-1.2%
Forty Seven Inc-1.2%
comScore Inc-1.2%
Roadrunner Transportation System-1.2%
Aerie Pharmaceuticals Inc-1.1%
Fluor Corp-1.1%
At Home Group Inc-1.1%
SEACOR Marine Holdings Inc-1.1%
TPI Composites Inc-1.1%
nLight Inc-1.1%
Covia Holdings Corp-1.1%
Nutanix Inc-1.1%
Veoneer Inc-1.1%
Red Lion Hotels Corp-1.1%
Calyxt Inc-1.0%
ZAGG Inc-1.0%
Revance Therapeutics Inc-1.0%
Eloxx Pharmaceuticals Inc-1.0%
RumbleON Inc-1.0%
Concrete Pumping Holdings Inc-1.0%
Zuora Inc-0.9%
Reata Pharmaceuticals Inc-0.9%
Aldeyra Therapeutics Inc-0.9%
Transocean Ltd-0.9%
Abeona Therapeutics Inc-0.8%
Carrols Restaurant Group Inc-0.8%
Kala Pharmaceuticals Inc-0.8%
SNC-Lavalin Group Inc-0.7%
Noodles & Co-0.7%
Scholar Rock Holding Corp-0.7%
NuVista Energy Ltd-0.7%
Valaris plc-0.6%
McDermott International Inc-0.6%
Pacific Drilling SA-0.5%
Chaparral Energy Inc-0.3%
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