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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 21, 2018
Geographic Mix
% of Portfolio
Japan 26.92%
United Kingdom 17.68%
France 10.11%
Hong Kong 8.73%
Italy 6.40%
Australia 5.45%
Germany 4.40%
Norway 4.00%
Sweden 3.63%
Israel 3.20%
Austria 3.08%
Spain 2.38%
Switzerland 1.34%
Finland 1.03%
Singapore 1.02%
New Zealand 0.61%
Sector Allocation
% of Portfolio
Industrials 26.92%
Consumer Discretionary 17.60%
Information Technology 10.48%
Consumer Staples 8.76%
Real Estate 7.97%
Materials 7.37%
Financials 7.22%
Health Care 4.93%
Cash 3.38%
Energy 2.33%
Utilities 2.13%
Telecommunication Services 0.90%
Top 10 Securities
% of Portfolio
Rothschild & Co 3.36%
IWG Plc 3.34%
Autogrill SPA 3.25%
Kerry Logistics Network Ltd 2.94%
Internet Initiative Japan 2.92%
Lisi 2.79%
Vitasoy International Holding 2.77%
L'Occitane 2.73%
Fuji Seal International Inc 2.60%
Hemfosa Fastigheter AB 2.47%
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