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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: Dec 10, 2018
Geographic Mix
% of Portfolio
Japan 29.33%
United Kingdom 18.16%
Hong Kong 10.01%
France 8.30%
Italy 5.71%
Australia 4.93%
Germany 4.60%
Sweden 4.45%
Norway 2.95%
Austria 2.90%
Israel 2.72%
Spain 2.53%
Singapore 1.18%
Switzerland 1.11%
New Zealand 0.78%
Finland 0.34%
Sector Allocation
% of Portfolio
Industrials 25.94%
Consumer Discretionary 18.56%
Consumer Staples 9.88%
Real Estate 8.65%
Materials 7.08%
Financials 6.40%
Information Technology 6.26%
Health Care 5.24%
Communication Services 4.54%
Cash 3.58%
Utilities 2.62%
Energy 1.24%
Top 10 Securities
% of Portfolio
Internet Initiative Japan 3.68%
Vitasoy International Holding 3.49%
Kerry Logistics Network Ltd 3.09%
L'Occitane 3.07%
Autogrill SPA 3.02%
Advance Residence Inv Corp 3.00%
IWG Plc 2.95%
Rothschild & Co 2.84%
Fuji Seal International Inc 2.78%
Greencross Ltd 2.73%
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