Key Takeaways
- • Accelerate Canadian Long Short Equity Fund (ATSX) launched May 10, 2019 as an actively managed mutual fund trust structured to deliver long-term capital appreciation while outperforming the broader Canadian equity market through quantitative factor-based selection.
- • Fund employs a 150-50 long-short strategy, using proprietary multifactor analysis to select top 10% of Canadian equities for long positions (up to 150% exposure) and bottom 10% for short positions (up to 50%), with cash generated from shorts funding additional long exposure.
- • Assets under management totaled 7.49 million CAD at the time of reporting, with positive fund flows of 3.10 million CAD over the prior 12 months and an expense ratio of 2.97%.
- • Fund trades at a modest discount to NAV of −0.3%, with 175,000 shares outstanding and a pricing methodology based on proprietary multifactor model incorporating value, quality, price momentum, operational momentum, and trend factors.
- • Active management approach targets S&P/TSX 60 outperformance through quantitative screening of the Canadian equity market without tracking an underlying index, distributing capital gains to shareholders.
Summary
The Accelerate Canadian Long Short Equity Fund (TSX: ATSX) represents a newly launched actively managed mutual fund trust structure introduced on May 10, 2019, by Accelerate Financial Technologies, Inc. The fund is designed to pursue long-term capital appreciation while generating returns that exceed the broader Canadian equity market through a sophisticated quantitative investment framework.
The fund's strategy centers on a 150-50 long-short equity overlay mechanism that distinguishes it within the Canadian alternative investment landscape. By maintaining up to 50% short exposure in securities identified in the bottom 10% of the manager's proprietary screening model, ATSX generates cash proceeds that fund an additional 50% long position, resulting in potential long portfolio exposure reaching 150%. This structure allows the fund to benefit from both upside capture and downside mitigation through systematic short exposure.
Security selection is driven by a proprietary multifactor quantitative model applied across the Canadian equity market. The selection criteria encompass five key factors: value, quality, price momentum, operational momentum, and trend. Equities ranking in the top 10% on the composite factor score are designated for long positions, while those in the bottom 10% populate the short sleeve. This rules-based approach aims to reduce subjective bias and deliver consistent outperformance relative to the S&P/TSX 60 benchmark.
As of the reporting date, the fund maintained assets under management of 7.49 million CAD with positive momentum, evidenced by fund flows of 3.10 million CAD over the preceding 12 months. The fund's cost structure reflects active management fees at 2.97%, with capital gains distributed to shareholders. The fund trades at a minimal discount to net asset value (−0.3%), with 175,000 shares outstanding. The structure was established as a Canadian Mutual Fund Trust registered in Ontario, with Accelerate Financial Technologies serving as both issuer and primary advisor.
The fund's strategy centers on a 150-50 long-short equity overlay mechanism that distinguishes it within the Canadian alternative investment landscape. By maintaining up to 50% short exposure in securities identified in the bottom 10% of the manager's proprietary screening model, ATSX generates cash proceeds that fund an additional 50% long position, resulting in potential long portfolio exposure reaching 150%. This structure allows the fund to benefit from both upside capture and downside mitigation through systematic short exposure.
Security selection is driven by a proprietary multifactor quantitative model applied across the Canadian equity market. The selection criteria encompass five key factors: value, quality, price momentum, operational momentum, and trend. Equities ranking in the top 10% on the composite factor score are designated for long positions, while those in the bottom 10% populate the short sleeve. This rules-based approach aims to reduce subjective bias and deliver consistent outperformance relative to the S&P/TSX 60 benchmark.
As of the reporting date, the fund maintained assets under management of 7.49 million CAD with positive momentum, evidenced by fund flows of 3.10 million CAD over the preceding 12 months. The fund's cost structure reflects active management fees at 2.97%, with capital gains distributed to shareholders. The fund trades at a minimal discount to net asset value (−0.3%), with 175,000 shares outstanding. The structure was established as a Canadian Mutual Fund Trust registered in Ontario, with Accelerate Financial Technologies serving as both issuer and primary advisor.
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