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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: Sep 18, 2020
Geographic Mix
% of Portfolio
Japan 30.30%
United Kingdom 14.87%
France 8.49%
Hong Kong 7.55%
Australia 5.88%
Italy 5.77%
Switzerland 5.14%
Sweden 4.71%
Germany 4.15%
Austria 3.88%
Israel 3.04%
Singapore 2.03%
Norway 1.93%
Denmark 1.18%
Spain 1.07%
All data as at: Sep 18, 2020
Sector Allocation
% of Portfolio
Industrials 23.17%
Consumer Staples 11.17%
Health Care 10.50%
Real Estate 10.03%
Financials 9.84%
Information Technology 9.71%
Consumer Discretionary 9.03%
Materials 7.10%
Communication Services 4.99%
Utilities 2.05%
Cash 1.66%
Energy 0.75%
All data as at: Sep 18, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.69%
Rothschild & Co 2.97%
Internet Initiative Japan 2.85%
L'Occitane 2.70%
De'Longhi Spa 2.65%
Clipper Logistics Plc 2.54%
Savills PLC 2.40%
Sopra Group 2.38%
Konami Holdings Corp 2.14%
Ain Holdings Inc 2.05%
All data as at: Sep 18, 2020
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