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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 30, 2021
Geographic Mix
% of Portfolio
Japan 30.54%
United Kingdom 15.31%
Australia 9.38%
Canada 8.35%
France 7.01%
Germany 5.30%
Austria 4.07%
Sweden 3.90%
Italy 3.71%
Hong Kong 3.65%
Norway 2.87%
Ireland 1.82%
Denmark 1.72%
Singapore 1.44%
Switzerland 0.94%
All data as at: Jul 30, 2021
Sector Allocation
% of Portfolio
Industrials 22.67%
Information Technology 18.39%
Health Care 13.63%
Consumer Discretionary 12.41%
Materials 9.14%
Consumer Staples 7.77%
Communication Services 4.93%
Financials 2.96%
Real Estate 2.79%
Cash 2.29%
Utilities 1.80%
Energy 1.22%
All data as at: Jul 30, 2021
Top 10 Securities
% of Portfolio
Gym Group Plc/The 3.31%
Eps Corporation 3.25%
Mnf Group Ltd 3.04%
Extendicare Inc 2.78%
Clipper Logistics Plc 2.75%
Nihon Chouzai Co Ltd 2.28%
Poletowin Pitcrew Holdings 2.20%
Atalaya Mining Plc 2.18%
Exel Industries Sa-A Shs 2.06%
Bravura Solutions Ltd 1.99%
All data as at: Jul 30, 2021
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