Philosophy

Active Management in an Inefficient Market

Research and analysis on smaller companies is often limited or not widely communicated, leading to the mispricing of such companies’ securities. Global Alpha believes this inefficiency creates fertile ground for uncovering terrific investment opportunities and provides the opportunity to add value through active management.

Bottom-up Fundamental Stock Selection

Global Alpha focuses its efforts on adding value through careful stock selection. Believing that sales and profit growth are key determinants of value creation, Global Alpha conducts its own fundamental research to identify companies whose intrinsic value is not fully reflected in their stock price.

Exploiting Investment Themes

Global Alpha has identified key investment themes it expects will persist over time, including: demographics, deregulation, technological innovation, globalization, outsourcing, health care and industry consolidation. Investing in companies expected to benefit from these trends increases the opportunity to outperform the MSCI Global Small Cap Index.

Balancing Concentration and Diversification

Global Alpha’s portfolios are typically comprised of 40–60 stocks as they believe concentrated portfolios maximize the alpha generation potential of a manager's best investment ideas. Within this context, diversification is critical to managing risk. Global Alpha places a great deal of emphasis on achieving prudent country, sector and security level diversification.