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Global Alpha Global Small Cap Strategy

Highlights

  • Small Cap Specialist: Exclusively focused on the small cap market
  • Experienced & Stable Team: Seasoned partners with proven investment results
  • Rigorous Research: Detailed fundamental research supported by management meetings and secular themes
  • Robust Portfolio Construction: High conviction portfolios driven by security selection and designed to mitigate factor risks

Objective

  • Added Value: MSCI World Small Cap Index (Net) +3% per year over a full market cycle
  • Tracking Error: 3% - 6% per year over a full market cycle
  • Portfolio Turnover: 20% - 40% of names per year

Investment Philosophy

  • Earnings growth per share drives stock prices
  • Secular growth themes support outperformance
  • Identify good companies with unrecognized growth potential
  • Long-term investment horizon for value realization

Investment Process

  • Research Prioritization of 11,000 names
    • Engage with companies, including around 1,000 management meetings per year
    • Analyze the universe based on capitalization and quality metrics
  • Fundamental Research
    • Rigorous bottom-up analysis on 250-300 names
    • Seek undiscovered value in companies with strong earnings growth
    • Forecast intrinsic value using a range of valuation tools
  • Investment Themes
    • Find companies expected to benefit from secular growth themes
  • Environment, Social & Governance
    • ESG factors integrated into investment analysis
    • Utilize proprietary scoring system designed for the small-cap universe
  • Portfolio Construction & Risk Management
    • Build high conviction portfolios of 50-70 stocks
    • Focus on adding value from security selection and minimizing factor risk
Quick Facts
Inception Date July 31, 2008
All data as at: Aug 23, 2019
Geographic Mix
% of Portfolio
United States 49.29%
Japan 13.57%
United Kingdom 8.16%
Hong Kong 5.76%
Canada 3.89%
France 3.85%
Italy 2.99%
Germany 2.85%
Sweden 1.84%
Spain 1.77%
Austria 1.73%
Australia 1.31%
Norway 1.21%
Singapore 1.03%
Switzerland 0.74%
Sector Allocation
% of Portfolio
Industrials 19.40%
Health Care 14.18%
Consumer Discretionary 11.71%
Information Technology 11.18%
Financials 10.08%
Real Estate 9.65%
Consumer Staples 7.40%
Materials 5.42%
Communication Services 4.83%
Utilities 3.08%
Cash 1.80%
Energy 1.28%
Top 10 Securities
% of Portfolio
Ormat Technologies Inc 3.08%
IWG Plc 3.06%
PRA Group Inc 3.03%
Autogrill SPA 2.94%
L'Occitane 2.92%
Extendicare Inc 2.90%
Kerry Logistics Network Ltd 2.74%
Verint Systems Inc 2.63%
ACI Worldwide Inc 2.53%
limoneira co 2.42%
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