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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 23, 2021
Geographic Mix
% of Portfolio
United States 42.97%
Japan 10.88%
United Kingdom 7.97%
Canada 6.28%
Hong Kong 5.64%
France 4.09%
Israel 3.87%
Australia 3.64%
Germany 2.51%
Spain 2.30%
Singapore 2.20%
Switzerland 1.74%
Italy 1.70%
Norway 1.51%
Sweden 1.39%
Austria 1.32%
All data as at: Sep 23, 2021
Sector Allocation
% of Portfolio
Industrials 17.91%
Health Care 13.61%
Consumer Discretionary 12.67%
Information Technology 10.59%
Financials 9.85%
Real Estate 9.70%
Consumer Staples 6.62%
Materials 6.30%
Communication Services 5.02%
Energy 2.64%
Utilities 2.61%
Cash 2.49%
All data as at: Sep 23, 2021
Top 10 Securities
% of Portfolio
Rothschild & Co 3.02%
L'Occitane 2.99%
Biffa Plc 2.66%
Internet Initiative Japan 2.56%
Kerry Logistics Network Ltd 2.51%
Savills PLC 2.50%
Carriage Services Inc 2.47%
ATN International Inc 2.46%
Motorcar Parts Of America Inc 2.41%
Umb Financial Corp 2.17%
All data as at: Sep 23, 2021
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