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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: Jul 19, 2019
Geographic Mix
% of Portfolio
United States 50.32%
Japan 12.03%
United Kingdom 7.96%
Hong Kong 6.65%
France 3.79%
Canada 3.57%
Italy 3.30%
Germany 3.10%
Austria 2.02%
Sweden 1.79%
Spain 1.61%
Norway 1.27%
Australia 1.26%
Switzerland 0.74%
Singapore 0.60%
Sector Allocation
% of Portfolio
Industrials 19.90%
Health Care 14.46%
Information Technology 11.92%
Consumer Discretionary 11.32%
Financials 10.06%
Real Estate 9.20%
Consumer Staples 7.89%
Materials 5.28%
Communication Services 4.00%
Utilities 2.84%
Energy 2.12%
Cash 1.01%
Top 10 Securities
% of Portfolio
Autogrill SPA 3.27%
IWG Plc 3.17%
Kerry Logistics Network Ltd 3.06%
Ormat Technologies Inc 2.84%
ACI Worldwide Inc 2.83%
PRA Group Inc 2.82%
Extendicare Inc 2.78%
L'Occitane 2.77%
Verint Systems Inc 2.70%
Rothschild & Co 2.53%
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