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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: Feb 24, 2021
Geographic Mix
% of Portfolio
Japan 25.96%
United Kingdom 14.47%
Hong Kong 9.36%
France 8.32%
Australia 6.28%
Italy 5.62%
Germany 5.09%
Austria 4.46%
Switzerland 4.25%
Sweden 3.81%
Israel 3.40%
Singapore 2.71%
Spain 2.62%
Norway 2.47%
Denmark 1.18%
All data as at: Feb 24, 2021
Sector Allocation
% of Portfolio
Industrials 23.65%
Consumer Discretionary 12.37%
Consumer Staples 10.63%
Financials 10.56%
Information Technology 9.78%
Health Care 9.45%
Real Estate 8.68%
Materials 8.00%
Utilities 2.61%
Communication Services 2.16%
Energy 1.09%
Cash 1.01%
All data as at: Feb 24, 2021
Top 10 Securities
% of Portfolio
Kerry Logistics Network Ltd 3.80%
L'Occitane 3.59%
Savills PLC 3.20%
Rothschild & Co 2.90%
Biffa Plc 2.86%
Raffles Medical Group Ltd 2.68%
Ormat Technologies Inc 2.61%
Sopra Group 2.56%
Internet Initiative Japan 2.16%
Horiba 2.07%
All data as at: Feb 24, 2021
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