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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 09, 2020
Geographic Mix
% of Portfolio
Japan 30.38%
United Kingdom 14.63%
Hong Kong 7.70%
France 7.54%
Australia 5.61%
Italy 5.57%
Germany 4.92%
Sweden 4.67%
Switzerland 4.34%
Austria 3.83%
Norway 3.03%
Israel 2.81%
Singapore 2.39%
Denmark 1.30%
Spain 1.28%
All data as at: Jul 09, 2020
Sector Allocation
% of Portfolio
Industrials 23.29%
Consumer Staples 11.83%
Health Care 11.49%
Real Estate 10.81%
Financials 9.52%
Information Technology 9.50%
Consumer Discretionary 8.92%
Materials 6.53%
Communication Services 3.71%
Utilities 1.80%
Cash 1.79%
Energy 0.80%
All data as at: Jul 09, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.57%
L'Occitane 2.85%
Rothschild & Co 2.79%
Clipper Logistics Plc 2.64%
De'Longhi Spa 2.40%
Savills PLC 2.38%
Advance Residence Inv Corp 2.38%
Raffles Medical Group Ltd 2.35%
Internet Initiative Japan 2.34%
Ain Holdings Inc 2.28%
All data as at: Jul 09, 2020
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