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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: Jan 15, 2021
Geographic Mix
% of Portfolio
Japan 31.62%
United Kingdom 13.87%
Sweden 9.67%
Australia 8.74%
France 8.52%
Canada 8.00%
Austria 4.89%
Hong Kong 3.61%
Norway 2.28%
Germany 2.23%
Ireland 1.89%
Singapore 1.56%
Switzerland 1.20%
Italy 1.19%
Denmark 0.75%
All data as at: Jan 15, 2021
Sector Allocation
% of Portfolio
Industrials 24.73%
Information Technology 21.47%
Health Care 12.45%
Consumer Discretionary 11.39%
Materials 6.69%
Consumer Staples 6.38%
Cash 4.07%
Communication Services 4.04%
Financials 3.39%
Utilities 2.77%
Real Estate 1.81%
Energy 0.82%
All data as at: Jan 15, 2021
Top 10 Securities
% of Portfolio
Poletowin Pitcrew Holdings 3.17%
Clipper Logistics Plc 3.15%
Gym Group Plc/The 2.76%
Mnf Group Ltd 2.55%
Yumeshin Holdings Co Ltd 2.42%
Boozt Ab 2.39%
Hirata Corp 2.32%
Anicom Holdings Inc 2.25%
Extendicare Inc 2.19%
Norway Royal Salmon Asa 2.19%
All data as at: Jan 15, 2021
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