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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: Nov 26, 2021
Geographic Mix
% of Portfolio
United States 46.62%
Japan 10.78%
United Kingdom 7.75%
Canada 7.03%
Hong Kong 4.45%
France 3.72%
Israel 3.37%
Australia 2.98%
Germany 2.81%
Spain 2.34%
Singapore 2.13%
Norway 1.72%
Italy 1.40%
Sweden 1.26%
Switzerland 1.06%
Austria 0.58%
All data as at: Nov 26, 2021
Sector Allocation
% of Portfolio
Industrials 15.08%
Health Care 13.14%
Consumer Discretionary 12.80%
Information Technology 10.97%
Financials 10.60%
Real Estate 10.13%
Consumer Staples 7.20%
Materials 6.58%
Communication Services 5.20%
Utilities 3.34%
Energy 2.89%
Cash 2.07%
All data as at: Nov 26, 2021
Top 10 Securities
% of Portfolio
L'Occitane 3.43%
Internet Initiative Japan 3.05%
Rothschild & Co 2.86%
Carriage Services Inc 2.69%
Umb Financial Corp 2.46%
Ormat Technologies Inc 2.46%
Biffa Plc 2.43%
Savills PLC 2.33%
PRA Group Inc 2.24%
Eagle Materials Inc. 2.20%
All data as at: Nov 26, 2021
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