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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 09, 2020
Geographic Mix
% of Portfolio
United States 44.03%
Japan 14.63%
United Kingdom 7.51%
Hong Kong 6.52%
Canada 5.45%
France 4.06%
Singapore 2.35%
Switzerland 2.34%
Australia 2.16%
Norway 1.88%
Israel 1.83%
Germany 1.60%
Italy 1.40%
Austria 1.15%
Denmark 1.07%
Spain 1.06%
Sweden 0.96%
All data as at: Jul 09, 2020
Sector Allocation
% of Portfolio
Industrials 17.66%
Health Care 14.29%
Information Technology 12.93%
Consumer Discretionary 10.87%
Real Estate 10.83%
Financials 9.48%
Consumer Staples 8.42%
Communication Services 6.79%
Materials 5.83%
Utilities 1.90%
Energy 0.81%
Cash 0.19%
All data as at: Jul 09, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.68%
ATN International Inc 3.30%
Motorcar Parts Of America Inc 3.24%
Rothschild & Co 2.89%
Verint Systems Inc 2.88%
L'Occitane 2.82%
Extendicare Inc 2.78%
limoneira co 2.57%
ACI Worldwide Inc 2.44%
Raffles Medical Group Ltd 2.35%
All data as at: Jul 09, 2020
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