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-Oct-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 2019-Oct-31

Long Short
Number of Securities4640
Average Market Cap ($mm)$26,744$1,619
Beta 0.9 1.2
EBITDA/EV9.0%-10.1%
FCF/EV5.1%-20.4%
Trailing Return48.5%-46.4%
Pct of 52 Week High94.8%44.4%
Return on Capital24.1%-17.4%
Gross Profits/Assets10.9%3.8%
50 DMA to 200 DMA115.8%69.5%
EPS Revision0.7%0.9%
Change In Shares-2.0%8.2%
Earnings Abnormal Return4.2%-10.5%

Sector Weightings as of 2019-Oct-31

Long Short
Communication Services5.4%0.0%
Consumer Discretionary16.1%-5.5%
Consumer Staples11.1%-1.1%
Energy3.7%-4.6%
Financials7.7%-2.4%
Health Care20.1%-10.3%
Industrials20.4%-9.1%
Information Technology15.8%-6.3%
Materials9.9%-4.7%
Real Estate0.0%0.0%
Utilities0.0%-1.2%
Total Equities110.2%-45.1%

Fund Holdings as of 2019-Oct-31

Long Security NameWeight
Anika Therapeutics Inc3.0%
Lam Research Corp2.9%
John B Sanfilippo & Son Inc2.8%
Cable One Inc2.8%
Amgen Inc2.7%
Kimball International Inc2.6%
RH2.6%
Edwards Lifesciences Corp2.6%
MarketAxess Holdings Inc2.6%
Cogeco Communications Inc2.6%
Asbury Automotive Group Inc2.6%
S&P Global Inc2.6%
RPM International Inc2.6%
BMC Stock Holdings Inc2.6%
Lululemon Athletica Inc2.6%
Quanex Building Products Corp2.6%
Keysight Technologies Inc2.6%
GMS Inc2.6%
IDEXX Laboratories Inc2.6%
NewMarket Corp2.5%
Copart Inc2.5%
Teradyne Inc2.5%
Cintas Corp2.5%
Merck & Co Inc2.5%
Zoetis Inc2.5%
Herman Miller Inc2.5%
Crawford & Co2.4%
Valvoline Inc2.4%
Collectors Universe Inc2.4%
Trex Co Inc2.4%
Target Corp2.4%
Chemed Corp2.4%
PepsiCo Inc2.4%
Boston Beer Co Inc/The2.4%
Orca Exploration Group Inc2.4%
Coca-Cola European Partners PL2.3%
Gran Colombia Gold Corp2.3%
Texas Instruments Inc2.2%
Manhattan Associates Inc2.2%
Dennys Corp2.2%
GlobalSCAPE Inc2.1%
Zynex Inc1.8%
KLA Corp1.3%
World Fuel Services Corp1.3%
Meritage Homes Corp1.2%
Empire Co Ltd1.2%
GlobalSCAPE Inc0.6%

 

Short Security NameWeight
SNC-Lavalin Group Inc-1.5%
Flexsteel Industries Inc-1.4%
Forty Seven Inc-1.4%
Pluralsight Inc-1.4%
Golden Star Resources Ltd-1.4%
2U Inc-1.3%
Evelo Biosciences Inc-1.3%
Concho Resources Inc-1.3%
Arlo Technologies Inc-1.2%
Ranpak Holdings Corp-1.2%
Rocket Pharmaceuticals Inc-1.2%
FNCB Bancorp Inc-1.2%
New Relic Inc-1.2%
Just Energy Group Inc-1.2%
Aldeyra Therapeutics Inc-1.2%
State Street Corp-1.2%
Domo Inc-1.2%
KalVista Pharmaceuticals Inc-1.1%
Roadrunner Transportation Systems-1.1%
Atlas Air Worldwide Holdings Inc-1.1%
Bloom Energy Corp-1.1%
US Xpress Enterprises Inc-1.1%
Twin Disc Inc-1.1%
ViewRay Inc-1.1%
Xeris Pharmaceuticals Inc-1.1%
Farmer Brothers Co-1.1%
At Home Group Inc-1.1%
Flotek Industries Inc-1.1%
Red Lion Hotels Corp-1.1%
EyePoint Pharmaceuticals Inc-1.0%
Venator Materials PLC-1.0%
Leaf Group Ltd-1.0%
Fluor Corp-1.0%
YRC Worldwide Inc-0.9%
Mammoth Energy Services Inc-0.9%
Indigo Books & Music Inc-0.9%
BioCryst Pharmaceuticals Inc-0.9%
Contango Oil & Gas Co-0.8%
Unit Corp-0.8%
Valaris plc-0.8%
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