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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: Nov 26, 2021
Geographic Mix
% of Portfolio
Japan 28.88%
United Kingdom 15.43%
Canada 10.68%
Australia 9.66%
France 6.01%
Germany 5.38%
Italy 4.09%
Austria 3.94%
Norway 3.80%
Hong Kong 3.51%
Denmark 2.07%
Singapore 2.07%
Sweden 1.99%
Ireland 1.77%
Switzerland 0.72%
All data as at: Nov 26, 2021
Sector Allocation
% of Portfolio
Industrials 22.62%
Information Technology 16.27%
Consumer Discretionary 13.07%
Materials 11.28%
Health Care 10.27%
Consumer Staples 6.21%
Communication Services 6.09%
Real Estate 3.66%
Financials 3.62%
Energy 2.70%
Cash 2.25%
Utilities 1.95%
All data as at: Nov 26, 2021
Top 10 Securities
% of Portfolio
Symbio Holdings Ltd 3.40%
Atalaya Mining Plc 3.00%
Zuken Inc 2.59%
Extendicare Inc 2.41%
Animalcare Group Plc 2.31%
Nippon Ceramic Co Ltd 2.23%
Argonaut Gold Inc. 2.21%
Poletowin Pitcrew Holdings 2.12%
Fashionette Ag 2.08%
Clipper Logistics Plc 2.06%
All data as at: Nov 26, 2021
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