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-Dec-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
HDGE1.4%-9.4%-11.5%-11.5%n/a-13.1%

Fund Characteristics as of 2020-Dec-31

Long Short
Number of Securities4855
Average Market Cap ($mm)$58,646$2,919
Beta1.11.5
EBITDA/EV11.7%-1.8%
FCF/EV7.6%-5.3%
Trailing Return39.6%-13.7%
Pct of 52 Week High89.2%68.2%
Return on Capital18.3%-20.4%
Gross Profits/Assets8.9%1.7%
50 DMA to 200 DMA117.7%122.8%
EPS Revision1.1%1.8%
Change In Shares-2.8%9.5%
Earnings Abnormal Return-0.4%2.3%

Sector Weightings as of 2020-Dec-31

Long Short
Communication Services6.5%-1.5%
Consumer Discretionary11.0%-3.3%
Consumer Staples8.8%-1.2%
Energy1.7%-3.4%
Financials12.6%-5.7%
Health Care1.9%-3.2%
Industrials16.7%-6.3%
Information Technology11.0%-4.4%
Materials14.4%-6.2%
Real Estate1.9%-1.3%
Utilities1.9%0.0%
Equity Exposure88.2%-36.6%

Fund Holdings as of 2020-Dec-31

Long Security NameWeight
AcuityAds Holdings Inc2.9%
Synaptics Inc2.1%
Hardwoods Distribution Inc1.9%
Boise Cascade Co1.9%
Masco Corp1.9%
Dundee Precious Metals Inc1.9%
Real Matters Inc1.9%
Helen of Troy Ltd1.9%
BRP Inc1.9%
Cerner Corp1.9%
Fortune Brands Home & Security1.9%
Carlisle Cos Inc1.9%
Simpson Manufacturing Co Inc1.9%
Northland Power Inc1.9%
Moodys Corp1.9%
Stantec Inc1.9%
IBI Group Inc1.9%
Microsoft Corp1.8%
SEI Investments Co1.8%
Gentex Corp1.8%
Commercial Metals Co1.8%
Teradyne Inc1.8%
Procter & Gamble Co/The1.8%
HomeStreet Inc1.8%
Ameriprise Financial Inc1.8%
Lithia Motors Inc1.8%
Empire Co Ltd1.8%
Loblaw Cos Ltd1.8%
Quebecor Inc1.8%
Illinois Tool Works Inc1.8%
Reliance Steel & Aluminum Co1.8%
DR Horton Inc1.8%
Intel Corp1.8%
T Rowe Price Group Inc1.8%
Deckers Outdoor Corp1.8%
Donnelley Financial Solutions1.8%
Applied Materials Inc1.8%
Sirius XM Holdings Inc1.8%
FMC Corp1.8%
Alimentation Couche-Tard Inc1.7%
Cascades Inc1.7%
Roxgold Inc1.7%
CI Financial Corp1.7%
Torex Gold Resources Inc1.7%
Parex Resources Inc1.7%
Cambium Networks Corp1.7%
Old Dominion Freight Line Inc1.7%
Lifevantage Corp1.6%

 

Short Security NameWeight
Synchronoss Technologies Inc-1.1%
Contango Oil & Gas Co-0.9%
LiveXLive Media Inc-0.9%
SilverCrest Metals Inc-0.8%
Livent Corp-0.8%
Pacific Biosciences of California-0.8%
OneSpaWorld Holdings Ltd-0.8%
Zuora Inc-0.7%
Cree Inc-0.7%
Cleveland-Cliffs Inc-0.7%
Viad Corp-0.7%
Playa Hotels & Resorts NV-0.7%
Trilogy Metals Inc-0.7%
Nexa Resources SA-0.7%
Lyft Inc-0.7%
New Residential Investment Corp-0.7%
Delek US Holdings Inc-0.7%
Ready Capital Corp-0.7%
Teck Resources Ltd-0.7%
Howard Hughes Corp/The-0.7%
Redwood Trust Inc-0.7%
VirnetX Holding Corp-0.7%
ViewRay Inc-0.7%
Cimarex Energy Co-0.7%
Coty Inc-0.7%
Spirit AeroSystems Holdings In-0.7%
Haynes International Inc-0.7%
Eagle Bulk Shipping Inc-0.7%
Eventbrite Inc-0.7%
Park Hotels & Resorts Inc-0.7%
Colony Credit Real Estate Inc-0.7%
Greenlight Capital Re Ltd-0.6%
SP Plus Corp-0.6%
Delta Air Lines Inc-0.6%
Red Robin Gourmet Burgers Inc-0.6%
Spirit Airlines Inc-0.6%
Heritage Commerce Corp-0.6%
NexTier Oilfield Solutions Inc-0.6%
Misonix Inc-0.6%
Western Asset Mortgage Capital-0.6%
Carrols Restaurant Group Inc-0.6%
Ambac Financial Group Inc-0.6%
Chimera Investment Corp-0.6%
Norwegian Cruise Line Holdings-0.6%
Tidewater Inc-0.6%
Paysign Inc-0.6%
Flotek Industries Inc-0.6%
Hawaiian Holdings Inc-0.6%
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