Global Alpha logo.

Philosophy

Adding value through stock selection by leveraging
global investment themes.

We focus on adding value
through careful stock selection.

Our bottom-up fundamental approach combines with management interviews to identify companies with features such as sustainable competitive advantage, clearly defined growth strategies, and a strong balance sheet. Detailed financial analysis is conducted to determine whether a good company is also a good investment opportunity. Discounted cash flow analysis is used to identify stocks that are trading at a significant discount to intrinsic value along with the catalysts expected to drive realization to their true value.

 

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Active
management
in an inefficient
market

Research and analysis on smaller companies is often limited or not widely communicated, leading the investment community to misprice these securities.

 

This inefficiency creates fertile ground for uncovering companies with unrecognized growth, accelerating earnings, strong balance sheets, and significant management ownership.

 

We combine a bottom-up, research-based approach together with consideration of global themes to build conviction-based portfolios intended to produce sustainable added value.

Bottom-up Fundamental Stock Selection

We focus on adding value through careful stock selection. Our bottom-up fundamental approach combines management interviews to identify companies with features such as sustainable competitive advantage, clearly defined growth strategies, and a strong balance sheet. We conduct detailed financial analyses to determine whether a good company is also a good investment opportunity.

We use discounted cash flow analyses to identify stocks that are trading at a significant discount to intrinsic value along with the catalysts expected to drive realization to their true value.

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We structure portfolios around distinct investment themes that identify the major long-term cyclical and structural influences in world economies and stock markets. At Global Alpha, we believe that companies expected to benefit from social, economic, industrial or demographic trends should increase our ability to outperform benchmarks over time.

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Balancing
Concentration and
Diversification

We believe that concentrated portfolios, typically 50-70 stocks focused on our highest conviction investment opportunities, maximize our opportunity to generate added value. However, diversification and effective risk management are also critical.

 

We use a comprehensive risk management framework to effectively manage stock-specific
risk within our strategies.

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