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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: Dec 07, 2018
Geographic Mix
% of Portfolio
United States 50.11%
Japan 12.86%
Hong Kong 7.32%
United Kingdom 4.69%
Australia 4.45%
France 3.84%
Canada 3.30%
Italy 3.24%
Germany 2.31%
Spain 1.98%
Austria 1.84%
Norway 1.69%
Sweden 1.38%
Switzerland 0.80%
Finland 0.20%
Sector Allocation
% of Portfolio
Industrials 19.56%
Consumer Discretionary 17.80%
Financials 11.44%
Health Care 9.92%
Information Technology 9.87%
Real Estate 6.89%
Communication Services 6.28%
Materials 5.75%
Consumer Staples 5.60%
Utilities 2.55%
Energy 2.22%
Cash 2.13%
Top 10 Securities
% of Portfolio
Umb Financial Corp 3.55%
ACI Worldwide Inc 3.23%
Autogrill SPA 3.17%
Greencross Ltd 2.97%
IWG Plc 2.90%
Internet Initiative Japan 2.71%
Kerry Logistics Network Ltd 2.58%
Ormat Technologies Inc 2.55%
Rothschild & Co 2.54%
limoneira co 2.51%
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