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Global Alpha International Small 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 EAFE Small Cap Index (Net) +3% per year over a full market cycle
  • Tracking Error: 3% - 6% per year over a full market cycle
  • Portfolio Turnover: 20% - 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
    • Focus on adding value from security selection and minimizing factor risk
Quick Facts
Inception Date December 31, 2009
All data as at: Jul 18, 2018
Geographic Mix
% of Portfolio
Japan 25.53%
United Kingdom 17.73%
France 9.22%
Hong Kong 7.96%
Germany 6.70%
Australia 5.61%
Israel 5.58%
Italy 5.40%
Norway 3.74%
Sweden 3.58%
Austria 3.09%
Spain 2.24%
Finland 1.22%
Switzerland 1.09%
Singapore 0.78%
New Zealand 0.54%
Sector Allocation
% of Portfolio
Industrials 25.27%
Consumer Discretionary 17.24%
Information Technology 11.47%
Consumer Staples 8.46%
Real Estate 8.35%
Financials 8.00%
Materials 7.87%
Health Care 7.02%
Energy 2.32%
Cash 1.56%
Utilities 1.42%
Telecommunication Services 1.01%
Top 10 Securities
% of Portfolio
IWG Plc 3.81%
Rothschild & Co 3.23%
Jardine Lloyd Thompson Group 3.09%
Carl Zeiss Meditec AG 3.04%
Nice Ltd 2.96%
Vitasoy International Holding 2.83%
Internet Initiative Japan 2.81%
Fuji Seal International Inc 2.81%
Lisi 2.76%
Autogrill SPA 2.70%
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