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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, 2020
Geographic Mix
% of Portfolio
United States 46.15%
Japan 14.04%
United Kingdom 7.47%
Canada 6.56%
Hong Kong 6.40%
France 4.07%
Switzerland 2.16%
Australia 2.12%
Singapore 1.91%
Israel 1.64%
Germany 1.42%
Austria 1.25%
Italy 1.06%
Norway 1.03%
Denmark 0.99%
Sweden 0.88%
Spain 0.84%
All data as at: Sep 18, 2020
Sector Allocation
% of Portfolio
Industrials 17.37%
Health Care 13.31%
Consumer Discretionary 11.03%
Information Technology 11.01%
Financials 10.01%
Real Estate 9.67%
Consumer Staples 8.25%
Materials 6.81%
Communication Services 6.66%
Cash 2.06%
Utilities 2.03%
Energy 1.78%
All data as at: Sep 18, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.65%
Motorcar Parts Of America Inc 3.11%
Extendicare Inc 3.00%
ATN International Inc 3.00%
Rothschild & Co 2.86%
Verint Systems Inc 2.82%
limoneira co 2.80%
L'Occitane 2.62%
Titan Machinery Inc 2.41%
Internet Initiative Japan 2.22%
All data as at: Sep 18, 2020
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