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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: Jun 18, 2021
Geographic Mix
% of Portfolio
Japan 26.12%
United Kingdom 15.37%
Hong Kong 9.24%
France 8.90%
Australia 6.70%
Italy 6.29%
Germany 4.42%
Austria 4.12%
Switzerland 3.96%
Sweden 3.69%
Spain 2.92%
Singapore 2.68%
Israel 2.59%
Norway 1.97%
Denmark 1.02%
All data as at: Jun 18, 2021
Sector Allocation
% of Portfolio
Industrials 24.59%
Consumer Discretionary 13.61%
Consumer Staples 10.09%
Financials 9.78%
Information Technology 9.62%
Health Care 8.50%
Real Estate 8.08%
Materials 7.90%
Communication Services 2.78%
Energy 1.76%
Utilities 1.75%
Cash 1.54%
All data as at: Jun 18, 2021
Top 10 Securities
% of Portfolio
L'Occitane 3.75%
Kerry Logistics Network Ltd 3.44%
Biffa Plc 3.19%
Savills PLC 2.92%
Rothschild & Co 2.87%
Internet Initiative Japan 2.78%
Clipper Logistics Plc 2.70%
Raffles Medical Group Ltd 2.63%
Sopra Group 2.60%
Asics Corp 2.33%
All data as at: Jun 18, 2021
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