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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: Sep 18, 2018
Geographic Mix
% of Portfolio
United States 47.43%
Japan 11.47%
United Kingdom 8.84%
Hong Kong 6.54%
France 4.00%
Canada 3.54%
Australia 3.42%
Italy 3.12%
Germany 2.47%
Norway 2.23%
Austria 2.04%
Spain 1.76%
Sweden 1.47%
Switzerland 0.94%
Finland 0.75%
Sector Allocation
% of Portfolio
Industrials 20.50%
Consumer Discretionary 15.54%
Financials 14.66%
Information Technology 12.26%
Health Care 11.66%
Real Estate 6.46%
Consumer Staples 5.40%
Materials 5.33%
Energy 3.25%
Telecommunication Services 1.99%
Utilities 1.84%
Cash 1.11%
Top 10 Securities
% of Portfolio
Jardine Lloyd Thompson Group 3.50%
Umb Financial Corp 3.09%
Autogrill SPA 3.08%
ACI Worldwide Inc 3.01%
PRA Group Inc 2.78%
IWG Plc 2.72%
Extendicare Inc. 2.64%
limoneira co 2.61%
Rothschild & Co 2.45%
Kerry Logistics Network Ltd 2.44%
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