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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: Feb 18, 2019
Geographic Mix
% of Portfolio
United States 51.20%
Japan 12.20%
Hong Kong 6.73%
United Kingdom 5.69%
Australia 4.35%
France 3.46%
Canada 3.28%
Italy 2.93%
Germany 2.92%
Austria 2.17%
Spain 1.89%
Norway 1.58%
Sweden 0.85%
Switzerland 0.77%
Sector Allocation
% of Portfolio
Industrials 19.00%
Consumer Discretionary 17.58%
Health Care 11.54%
Information Technology 10.45%
Financials 9.75%
Real Estate 7.76%
Materials 6.47%
Consumer Staples 5.94%
Communication Services 5.73%
Energy 2.55%
Utilities 2.52%
Cash 0.70%
Top 10 Securities
% of Portfolio
PRA Group Inc 2.93%
IWG Plc 2.93%
Autogrill SPA 2.91%
Greencross Ltd 2.76%
ACI Worldwide Inc 2.74%
Motorcar Parts Of America In 2.70%
limoneira co 2.67%
Omnicell Inc 2.56%
Ormat Technologies Inc 2.52%
L'Occitane 2.42%
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