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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: Nov 26, 2021
Geographic Mix
% of Portfolio
Japan 28.94%
United Kingdom 16.43%
France 7.52%
Hong Kong 6.41%
Australia 5.96%
Italy 5.69%
Germany 4.60%
Israel 4.21%
Switzerland 3.88%
Austria 3.84%
Sweden 3.72%
Norway 2.79%
Singapore 2.76%
Spain 2.46%
Denmark 0.80%
All data as at: Nov 26, 2021
Sector Allocation
% of Portfolio
Industrials 22.39%
Consumer Discretionary 14.82%
Financials 9.65%
Information Technology 9.52%
Consumer Staples 9.42%
Real Estate 8.69%
Materials 8.19%
Health Care 7.88%
Communication Services 3.11%
Utilities 3.07%
Energy 2.17%
Cash 1.10%
All data as at: Nov 26, 2021
Top 10 Securities
% of Portfolio
L'Occitane 3.68%
Biffa Plc 3.37%
Savills PLC 3.35%
Internet Initiative Japan 3.11%
Ormat Technologies Inc 3.07%
Rothschild & Co 2.84%
Raffles Medical Group Ltd 2.73%
Sega Sammy Holdings Inc 2.66%
Sopra Group 2.59%
Asics Corp 2.52%
All data as at: Nov 26, 2021
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