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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: Jul 30, 2021
Geographic Mix
% of Portfolio
United States 42.24%
Japan 10.25%
United Kingdom 7.66%
Hong Kong 6.66%
Canada 5.99%
Israel 4.66%
France 3.78%
Australia 3.39%
Germany 2.38%
Singapore 2.32%
Spain 2.18%
Switzerland 2.00%
Sweden 1.59%
Italy 1.58%
Norway 1.49%
Austria 1.32%
Denmark 0.51%
All data as at: Jul 30, 2021
Sector Allocation
% of Portfolio
Industrials 18.76%
Health Care 15.15%
Consumer Discretionary 12.87%
Information Technology 10.44%
Real Estate 9.86%
Financials 8.92%
Consumer Staples 7.34%
Materials 6.14%
Communication Services 4.12%
Cash 2.88%
Energy 2.12%
Utilities 1.41%
All data as at: Jul 30, 2021
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.33%
L'Occitane 3.13%
Motorcar Parts Of America Inc 2.73%
Biffa Plc 2.66%
Rothschild & Co 2.58%
Internet Initiative Japan 2.32%
Extendicare Inc 2.32%
Raffles Medical Group Ltd 2.26%
Umb Financial Corp 2.24%
Carriage Services Inc 2.16%
All data as at: Jul 30, 2021
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