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Small Cap. Global. Alpha.

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: Apr 25, 2018
Geographic Mix
% of Portfolio
Japan 27.74%
United Kingdom 17.94%
France 8.84%
Germany 5.54%
Australia 5.51%
Italy 4.85%
Israel 4.79%
Hong Kong 4.54%
Sweden 3.70%
Norway 3.68%
Austria 3.28%
Luxembourg 2.61%
Spain 2.26%
United States 1.68%
Switzerland 1.21%
Finland 1.20%
Singapore 0.63%
Sector Allocation
% of Portfolio
Industrials 25.11%
Consumer Discretionary 19.01%
Information Technology 10.50%
Real Estate 8.71%
Materials 8.37%
Financials 7.59%
Consumer Staples 7.57%
Health Care 6.43%
Energy 2.40%
Cash 2.03%
Utilities 1.65%
Telecommunication Services 0.63%
Top 10 Securities
% of Portfolio
IWG Plc 3.80%
Rothschild & Co 3.19%
Lisi 3.13%
Jardine Lloyd Thompson Group 2.82%
Fuji Seal International Inc 2.81%
Internet Initiative Japan 2.70%
Hemfosa Fastigheter AB 2.62%
L'Occitane 2.56%
Nice Ltd 2.52%
Greencross Ltd 2.50%
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