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Global Alpha International Micro 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

Objectives

  • Added Value: MSCI World ex USA Micro Cap Index (net) +4% per year over a full market cycle
  • Tracking Error: 4% - 8% per year over a full market cycle
  • Portfolio Turnover: 30% - 40% of names per year

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 7,000 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 with market capitalization generally between US$1 million and US$1 billion
    • Focus on adding value from security selection and minimizing factor risk
Quick Facts
Inception Date October 16, 2017
All data as at: May 10, 2021
Geographic Mix
% of Portfolio
Japan 29.33%
United Kingdom 15.39%
Australia 9.65%
Canada 8.83%
France 7.25%
Sweden 5.23%
Austria 4.70%
Germany 3.86%
Hong Kong 3.84%
Italy 3.34%
Norway 2.93%
Ireland 1.67%
Denmark 1.64%
Singapore 1.33%
Switzerland 0.99%
All data as at: May 10, 2021
Sector Allocation
% of Portfolio
Industrials 22.27%
Information Technology 19.36%
Health Care 12.97%
Consumer Discretionary 12.72%
Materials 8.41%
Consumer Staples 7.68%
Communication Services 5.76%
Financials 2.86%
Real Estate 2.62%
Cash 1.90%
Utilities 1.90%
Energy 1.56%
All data as at: May 10, 2021
Top 10 Securities
% of Portfolio
Clipper Logistics Plc 3.60%
Mnf Group Ltd 3.24%
Gym Group Plc/The 3.17%
Poletowin Pitcrew Holdings 2.95%
Extendicare Inc 2.71%
Atalaya Mining Plc 2.57%
Nihon Chouzai Co Ltd 2.38%
Eps Corporation 2.37%
Makino Milling Machine Co 2.14%
Norway Royal Salmon Asa 2.10%
All data as at: May 10, 2021
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