Global Alpha Capital Management home

 

Call Us
Call Us
Email Us
Email Us
Locate Us
Locate Us
Print this page
Print this page

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: Oct 18, 2019
Geographic Mix
% of Portfolio
United States 48.55%
Japan 13.14%
United Kingdom 9.35%
Hong Kong 5.19%
Canada 4.84%
France 3.71%
Italy 2.88%
Germany 2.50%
Sweden 1.91%
Austria 1.79%
Spain 1.62%
Singapore 1.32%
Australia 1.29%
Switzerland 1.03%
Norway 0.87%
Sector Allocation
% of Portfolio
Industrials 19.71%
Health Care 13.60%
Consumer Discretionary 13.11%
Information Technology 11.45%
Real Estate 10.29%
Financials 9.98%
Consumer Staples 6.21%
Materials 5.18%
Communication Services 4.89%
Utilities 2.92%
Energy 2.05%
Cash 0.61%
Top 10 Securities
% of Portfolio
Extendicare Inc 3.03%
PRA Group Inc 2.98%
IWG Plc 2.96%
Ormat Technologies Inc 2.92%
Autogrill SPA 2.87%
Kerry Logistics Network Ltd 2.74%
ACI Worldwide Inc 2.58%
Motorcar Parts Of America Inc 2.55%
Verint Systems Inc 2.54%
L'Occitane 2.41%
Connor, Clark & Lunn Financial Group home page