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Small Cap. Global. Alpha.

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: Apr 19, 2018
Geographic Mix
% of Portfolio
United States 44.17%
Japan 12.60%
United Kingdom 8.92%
Israel 4.86%
Australia 3.76%
Canada 3.57%
France 3.37%
Hong Kong 3.25%
Austria 2.45%
Italy 2.27%
Luxembourg 2.24%
Norway 2.16%
Germany 1.53%
Spain 1.37%
Sweden 1.33%
Finland 1.17%
Switzerland 0.97%
Sector Allocation
% of Portfolio
Industrials 16.59%
Consumer Discretionary 16.52%
Information Technology 14.01%
Financials 12.93%
Health Care 11.13%
Real Estate 8.32%
Consumer Staples 6.55%
Materials 5.75%
Energy 3.41%
Cash 1.84%
Telecommunication Services 1.58%
Utilities 1.39%
Top 10 Securities
% of Portfolio
IWG Plc 3.55%
limoneira co 3.50%
Umb Financial Corp 3.02%
Verifone Holdings Inc 2.79%
Jardine Lloyd Thompson Group 2.63%
Nice System Ltd - ADR 2.58%
PRA Group Inc 2.57%
ACI Worldwide Inc 2.56%
Extendicare Inc. 2.52%
Rothschild & Co 2.27%
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