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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 27, 2020
Geographic Mix
% of Portfolio
Japan 29.06%
United Kingdom 15.29%
France 8.38%
Hong Kong 8.23%
Australia 6.44%
Italy 5.47%
Switzerland 4.87%
Sweden 4.00%
Austria 3.81%
Israel 3.68%
Germany 3.49%
Spain 2.23%
Singapore 2.09%
Norway 1.68%
Denmark 1.27%
All data as at: Nov 27, 2020
Sector Allocation
% of Portfolio
Industrials 23.48%
Consumer Discretionary 11.00%
Consumer Staples 10.36%
Health Care 10.23%
Real Estate 10.14%
Financials 9.66%
Information Technology 9.25%
Materials 7.05%
Communication Services 4.59%
Utilities 2.87%
Energy 0.86%
Cash 0.52%
All data as at: Nov 27, 2020
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.84%
Rothschild & Co 3.08%
L'Occitane 2.97%
Ormat Technologies Inc 2.87%
Savills PLC 2.73%
Biffa Plc 2.53%
Internet Initiative Japan 2.34%
Clipper Logistics Plc 2.27%
Konami Holdings Corp 2.24%
Sopra Group 2.20%
All data as at: Nov 27, 2020
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