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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 18, 2018
Geographic Mix
% of Portfolio
United States 50.31%
Japan 10.40%
United Kingdom 8.96%
Hong Kong 5.77%
Australia 3.49%
Canada 3.26%
France 3.22%
Germany 3.05%
Italy 2.73%
Austria 2.25%
Norway 2.16%
Spain 1.28%
Sweden 1.28%
Finland 1.00%
Switzerland 0.83%
Sector Allocation
% of Portfolio
Industrials 17.60%
Consumer Discretionary 14.89%
Financials 13.73%
Health Care 12.72%
Information Technology 12.01%
Consumer Staples 8.41%
Real Estate 7.28%
Materials 5.66%
Energy 3.59%
Telecommunication Services 1.66%
Utilities 1.29%
Cash 1.17%
Top 10 Securities
% of Portfolio
limoneira co 4.81%
IWG Plc 3.61%
Umb Financial Corp 3.20%
PRA Group Inc 3.17%
Nice System Ltd - ADR 2.81%
Jardine Lloyd Thompson Group 2.73%
ACI Worldwide Inc 2.72%
Autogrill SPA 2.70%
Omnicell Inc 2.59%
Extendicare Inc. 2.27%
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