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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: Feb 18, 2019
Geographic Mix
% of Portfolio
Japan 27.62%
United Kingdom 16.89%
France 8.57%
Hong Kong 8.27%
Italy 7.00%
Germany 6.14%
Australia 5.34%
Sweden 4.94%
Austria 3.39%
Spain 3.25%
Norway 2.80%
Israel 2.77%
Switzerland 1.12%
Singapore 1.09%
New Zealand 0.82%
Sector Allocation
% of Portfolio
Industrials 26.88%
Consumer Discretionary 16.92%
Real Estate 9.25%
Materials 8.62%
Information Technology 8.13%
Consumer Staples 7.91%
Financials 4.99%
Health Care 4.84%
Cash 4.05%
Communication Services 3.33%
Utilities 2.65%
Energy 2.43%
Top 10 Securities
% of Portfolio
IWG Plc 3.03%
Autogrill SPA 2.99%
Advance Residence Inv Corp 2.94%
Vitasoy International Holding 2.74%
L'Occitane 2.66%
Internet Initiative Japan 2.66%
Ormat Technologies Inc 2.65%
Fuji Seal International Inc 2.61%
Horiba 2.59%
Kerry Logistics Network Ltd 2.53%
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