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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: Jul 09, 2020
Geographic Mix
% of Portfolio
Japan 30.91%
United Kingdom 13.65%
Australia 11.11%
Sweden 9.11%
France 8.83%
Canada 6.91%
Hong Kong 5.55%
Austria 3.15%
Germany 2.85%
Norway 2.52%
Ireland 2.08%
Singapore 1.50%
Italy 1.18%
Switzerland 0.66%
All data as at: Jul 09, 2020
Sector Allocation
% of Portfolio
Industrials 21.15%
Information Technology 21.05%
Health Care 11.65%
Consumer Discretionary 10.14%
Consumer Staples 8.96%
Materials 6.33%
Financials 6.32%
Communication Services 5.08%
Real Estate 3.06%
Utilities 3.00%
Cash 2.55%
Energy 0.71%
All data as at: Jul 09, 2020
Top 10 Securities
% of Portfolio
Clipper Logistics Plc 3.31%
Taiyo Holdings Co Ltd 3.01%
Nihon Chouzai Co Ltd 2.96%
Mnf Group Ltd 2.86%
Flatex AG 2.78%
Poletowin Pitcrew Holdings 2.77%
Nissin Foods Co Ltd 2.54%
Devoteam Sa 2.48%
Norway Royal Salmon Asa 2.45%
Extendicare Inc 2.41%
All data as at: Jul 09, 2020
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