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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: Jan 22, 2021
Geographic Mix
% of Portfolio
United States 49.16%
Japan 10.95%
United Kingdom 6.78%
Hong Kong 5.78%
Canada 5.68%
France 3.66%
Australia 2.95%
Israel 2.50%
Switzerland 2.15%
Spain 1.98%
Germany 1.82%
Singapore 1.76%
Austria 1.34%
Norway 0.95%
Italy 0.88%
Denmark 0.84%
Sweden 0.82%
All data as at: Jan 22, 2021
Sector Allocation
% of Portfolio
Industrials 17.12%
Information Technology 13.60%
Consumer Discretionary 13.34%
Health Care 12.66%
Real Estate 9.91%
Financials 9.05%
Consumer Staples 7.64%
Materials 6.33%
Communication Services 3.72%
Energy 3.54%
Utilities 2.51%
Cash 0.57%
All data as at: Jan 22, 2021
Top 10 Securities
% of Portfolio
Verint Systems Inc 3.44%
Kerry Logistics Network Ltd 2.96%
Motorcar Parts Of America Inc 2.93%
L'Occitane 2.79%
Rothschild & Co 2.75%
Clean Energy Fuels Corp 2.71%
Extendicare Inc 2.58%
Ormat Technologies Inc 2.51%
Carriage Services Inc 2.38%
Eagle Materials Inc. 2.28%
All data as at: Jan 22, 2021
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