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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 27, 2022
Geographic Mix
% of Portfolio
United States 46.67%
United Kingdom 8.98%
Japan 8.60%
Canada 7.46%
Hong Kong 5.00%
France 3.89%
Germany 3.01%
Spain 2.87%
Australia 2.71%
Israel 2.29%
Singapore 1.98%
Italy 1.64%
Norway 1.62%
Sweden 1.41%
Switzerland 1.03%
Denmark 0.84%
All data as at: Jan 27, 2022
Sector Allocation
% of Portfolio
Industrials 15.71%
Consumer Discretionary 13.86%
Health Care 12.63%
Financials 11.47%
Real Estate 10.48%
Information Technology 9.40%
Consumer Staples 7.24%
Materials 7.10%
Communication Services 4.18%
Utilities 3.39%
Energy 2.87%
Cash 1.67%
All data as at: Jan 27, 2022
Top 10 Securities
% of Portfolio
L'Occitane 3.15%
Rothschild & Co 2.81%
Biffa Plc 2.65%
Carriage Services Inc 2.53%
PRA Group Inc 2.53%
Verint Systems Inc 2.49%
Savills PLC 2.48%
ACI Worldwide Inc 2.41%
Umb Financial Corp 2.41%
Ormat Technologies Inc 2.39%
All data as at: Jan 27, 2022
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