Eaton Vance Global Small-Cap Strategy - offering exposure to 'compounders' and 'improvers'
The Eaton Vance Global Small-Cap Strategy offers exposure to a broadly diversified portfolio of global, high quality, small cap companies.
The investment philosophy is based on a belief that superior returns can be generated by identifying, valuing and investing primarily in two types of companies - those which exhibit the characteristics of defendable structural growth ('compounders') and those which are benefiting from structural change ('improvers'). The breadth and relative inefficiency of the small cap universe provides fertile territory in which to pursue this philosophy and, in doing so, the aim is to achieve long term capital appreciation and market-beating returns.
Characteristics of Compounders (Structural Growers)
• Strong barriers to entry
• Clear competitive advantage(s)
• Scalability of business
• Differentiation of products and services
• Industry or niche benefiting from structural growth
Characteristics of Improvers (Structural Change)
• Positive agents of change identified
• New senior management
• Product development
• Corporate structure
"Why Quality matters": Q&A with Aidan Farrell, Director of Global Small-Cap Equity at Eaton Vance
We first caught up with Aidan in 2017 to hear about Eaton Vance’s approach to small-cap equity investing and about his early interest in finance. Two years later, we are back checking in to discuss in more depth the critical “Quality” pillar in the team’s Quality, Valuation and Time (QVT) investment philosophy as well as the steps in Eaton Vance’s team-based approach. We also get to share Eaton Vance's recent white paper .
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Eaton Vance Investment Managers
Tel: +612 8229 0200 / +61 (0)411 554 778