Global Alpha Capital Management home

 

Call us
Email us
Locate us

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 27, 2021
Geographic Mix
% of Portfolio
Japan 27.36%
United Kingdom 17.12%
France 8.16%
Hong Kong 7.97%
Italy 6.63%
Australia 6.16%
Sweden 4.13%
Austria 4.00%
Switzerland 3.90%
Germany 3.88%
Singapore 2.97%
Israel 2.92%
Spain 2.45%
Norway 2.36%
All data as at: Sep 27, 2021
Sector Allocation
% of Portfolio
Industrials 23.16%
Consumer Discretionary 13.68%
Information Technology 9.96%
Financials 9.83%
Real Estate 9.52%
Consumer Staples 9.03%
Health Care 8.55%
Materials 7.65%
Communication Services 2.92%
Utilities 2.08%
Energy 1.88%
Cash 1.74%
All data as at: Sep 27, 2021
Top 10 Securities
% of Portfolio
Biffa Plc 3.72%
Savills PLC 3.62%
L'Occitane 3.39%
Rothschild & Co 3.14%
Internet Initiative Japan 2.92%
Raffles Medical Group Ltd 2.92%
Autogrill SPA 2.88%
Kerry Logistics Network Ltd 2.80%
Sopra Group 2.68%
Horiba 2.37%
All data as at: Sep 27, 2021
Connor, Clark & Lunn Financial Group home page