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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: Aug 23, 2019
Geographic Mix
% of Portfolio
Japan 31.54%
United Kingdom 15.82%
France 9.44%
Hong Kong 7.06%
Italy 6.34%
Germany 6.00%
Sweden 4.68%
Austria 3.56%
Australia 3.21%
Israel 3.19%
Spain 2.94%
Norway 2.83%
Switzerland 1.26%
Singapore 1.24%
New Zealand 0.91%
Sector Allocation
% of Portfolio
Industrials 25.04%
Consumer Discretionary 11.31%
Consumer Staples 10.77%
Information Technology 10.70%
Real Estate 10.56%
Financials 10.23%
Health Care 6.90%
Materials 6.57%
Utilities 3.17%
Communication Services 2.36%
Energy 1.91%
Cash 0.49%
Top 10 Securities
% of Portfolio
Ormat Technologies Inc 3.17%
L'Occitane 3.15%
Kerry Logistics Network Ltd 3.07%
IWG Plc 2.97%
Autogrill SPA 2.91%
Advance Residence Inv Corp 2.66%
Rothschild & Co 2.58%
Lisi 2.49%
Internet Initiative Japan 2.36%
Horiba 2.35%
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