Global Alpha Capital Management home

 

Call Us
Call Us
Email Us
Email Us
Locate Us
Locate Us
Print this page
Print this page

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: Jan 24, 2020
Geographic Mix
% of Portfolio
United States 48.91%
Japan 13.07%
United Kingdom 8.25%
Hong Kong 5.82%
Canada 5.18%
France 3.48%
Italy 2.71%
Germany 2.37%
Austria 1.96%
Sweden 1.92%
Spain 1.69%
Singapore 1.53%
Switzerland 1.22%
Australia 1.17%
Norway 0.72%
Sector Allocation
% of Portfolio
Industrials 18.84%
Health Care 13.68%
Real Estate 11.81%
Consumer Discretionary 11.50%
Financials 11.41%
Information Technology 10.33%
Consumer Staples 6.92%
Communication Services 5.45%
Materials 4.93%
Utilities 2.32%
Energy 2.10%
Cash 0.72%
Top 10 Securities
% of Portfolio
Verint Systems Inc 3.13%
Kerry Logistics Network Ltd 3.12%
PRA Group Inc 2.87%
Extendicare Inc 2.72%
ACI Worldwide Inc 2.71%
Autogrill SPA 2.69%
Motorcar Parts Of America Inc 2.69%
L'Occitane 2.66%
ATN International Inc 2.51%
IWG Plc 2.43%
Connor, Clark & Lunn Financial Group home page