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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 17, 2019
Geographic Mix
% of Portfolio
United States 49.08%
Japan 13.10%
United Kingdom 8.68%
Hong Kong 5.19%
Canada 4.60%
France 3.84%
Italy 2.90%
Germany 2.77%
Austria 1.81%
Sweden 1.78%
Spain 1.69%
Australia 1.37%
Singapore 1.23%
Norway 1.08%
Switzerland 0.87%
Sector Allocation
% of Portfolio
Industrials 19.79%
Health Care 13.60%
Consumer Discretionary 12.13%
Information Technology 11.50%
Financials 10.10%
Real Estate 9.82%
Consumer Staples 6.77%
Communication Services 5.25%
Materials 5.25%
Utilities 2.99%
Energy 2.46%
Cash 0.33%
Top 10 Securities
% of Portfolio
PRA Group Inc 3.05%
Ormat Technologies Inc 2.99%
IWG Plc 2.91%
Autogrill SPA 2.89%
Extendicare Inc 2.77%
ACI Worldwide Inc 2.74%
Kerry Logistics Network Ltd 2.61%
limoneira co 2.57%
L'Occitane 2.57%
Motorcar Parts Of America Inc 2.50%
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