Applying a strict value investing discipline rooted in Graham & Dodd principles, Brandes Investment Partners® searches worldwide for attractive investment candidates. Our Global Small Cap Equity Portfolio contains what we believe to be undervalued, smaller-sized companies from around the globe.
Typically, investment candidates in the small-cap segment tend to attract less coverage by research analysts than their large-cap counterparts, creating a greater possibility for us to take advantage of unrecognized investment opportunities. Using a disciplined research process that investigates the merits of individual firms on a company-by-company basis, we believe we can identify good values within the smaller-cap segment in virtually any part of the world.
Generally, a security will be bought if it is trading below what we believe to be its intrinsic value. This conservative approach strives to provide investors with both a margin of safety and long-term appreciation potential. Individual security selection drives the portfolio’s country and industry allocations.
Historically, smaller-cap companies have rewarded patient investors with greater returns relative to larger-cap stocks. While small-cap securities have a record of better long-term performance, they pose unique risks for investors. For example, such companies may lack the stability and extensive resources often associated with larger-cap firms. In addition, investing in smaller-cap companies outside the United States may subject investors to political, economic, and currency risks. Investors should carefully consider these risks in the context of their overall objective, time horizon, and asset allocation before investing.
For a more complete description and discussion of applicable risks, consult Brandes' Form ADV, Part 2A.