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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: Jan 17, 2020
Geographic Mix
% of Portfolio
Japan 31.46%
United Kingdom 17.30%
France 8.57%
Hong Kong 6.89%
Italy 6.67%
Germany 5.32%
Austria 4.61%
Australia 4.37%
Sweden 3.79%
Spain 2.50%
Norway 2.42%
Israel 2.26%
Singapore 1.60%
Switzerland 1.52%
New Zealand 0.72%
Sector Allocation
% of Portfolio
Industrials 24.61%
Real Estate 12.56%
Consumer Discretionary 11.25%
Financials 10.68%
Consumer Staples 9.82%
Information Technology 8.91%
Health Care 7.86%
Materials 6.12%
Communication Services 2.58%
Utilities 2.21%
Cash 2.20%
Energy 1.19%
Top 10 Securities
% of Portfolio
Autogrill SPA 3.08%
L'Occitane 3.05%
Kerry Logistics Network Ltd 2.96%
IWG Plc 2.88%
Savills PLC 2.62%
Internet Initiative Japan 2.58%
Melia Hotels International 2.44%
Rothschild & Co 2.34%
Ormat Technologies Inc 2.21%
Advance Residence Inv Corp 2.20%
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