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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 18, 2021
Geographic Mix
% of Portfolio
Japan 26.56%
United Kingdom 14.54%
France 8.89%
Hong Kong 8.35%
Australia 6.31%
Italy 5.28%
Switzerland 4.87%
Austria 4.27%
Sweden 4.27%
Germany 4.11%
Israel 3.90%
Singapore 2.52%
Norway 2.50%
Spain 2.44%
Denmark 1.21%
All data as at: Jan 18, 2021
Sector Allocation
% of Portfolio
Industrials 23.46%
Consumer Discretionary 11.72%
Information Technology 10.80%
Financials 10.30%
Consumer Staples 10.21%
Health Care 9.83%
Real Estate 9.19%
Materials 6.99%
Utilities 2.99%
Communication Services 2.00%
Cash 1.49%
Energy 0.99%
All data as at: Jan 18, 2021
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.59%
Savills PLC 3.21%
L'Occitane 3.18%
Rothschild & Co 3.12%
Ormat Technologies Inc 2.99%
Biffa Plc 2.90%
Sopra Group 2.59%
Raffles Medical Group Ltd 2.48%
Horiba 2.31%
Clipper Logistics Plc 2.09%
All data as at: Jan 18, 2021
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