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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: Nov 27, 2020
Geographic Mix
% of Portfolio
United States 46.83%
Japan 12.88%
United Kingdom 6.92%
Hong Kong 6.45%
Canada 6.35%
France 3.95%
Australia 2.48%
Switzerland 2.14%
Spain 1.85%
Singapore 1.79%
Israel 1.70%
Germany 1.40%
Austria 1.18%
Italy 1.16%
Sweden 1.03%
Norway 0.95%
Denmark 0.94%
All data as at: Nov 27, 2020
Sector Allocation
% of Portfolio
Industrials 17.16%
Health Care 12.80%
Consumer Discretionary 12.19%
Information Technology 11.37%
Financials 9.89%
Real Estate 9.34%
Consumer Staples 7.61%
Communication Services 6.47%
Materials 6.35%
Energy 2.50%
Utilities 2.46%
Cash 1.85%
All data as at: Nov 27, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.61%
Motorcar Parts Of America Inc 3.12%
Extendicare Inc 3.06%
Verint Systems Inc 3.04%
Rothschild & Co 2.83%
ATN International Inc 2.75%
L'Occitane 2.72%
Ormat Technologies Inc 2.46%
limoneira co 2.21%
Umb Financial Corp 2.19%
All data as at: Nov 27, 2020
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