• Overview
  • Performance
  • Characteristics
  • Notes
  • Portfolio Managers
  • Literature

Investment Strategy

The International Small Cap Growth strategy generally invests in companies based outside the United States and within the same market capitalization range at the time of investment as those included in the Morgan Stanley Capital International (MSCI) All Country World ex-USA Small Cap Growth Index.

 

Strategy Facts

Inception Date: 7/1/2001
Composite Assets as of 6/30/2017: $942 million
Total strategy assets*: $942m
Open to New Investors: No
Separately Managed Accounts Minimum Initial Investment: $20 million
Investment Vehicles: Separately managed account
Mutual fund

*Total strategy assets include all assets managed in the strategy style. Composite assets include those accounts that meet the composite objectives and eligibility requirements. Please click here for descriptions of composite objectives and eligibility requirements.


 

 

 

Performance as of 6/30/2017 | updated quarterly

Composite/Index QTR YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Driehaus International Small Cap Growth Composite (Gross) 13.22% 23.24% 19.51% 7.41% 14.14% 7.07% 17.71%
Driehaus International Small Cap Growth Composite (Net) 12.93% 22.59% 18.24% 6.26% 12.87% 5.55% 16.59%
MSCI AC World ex USA Small Cap Growth Index1(ND) (Benchmark) 6.95% 16.58% 17.17% 3.78% 9.77% 2.56% 8.02%
MSCI AC World ex USA Small Cap Growth Index1 (GD) 7.07% 16.79% 17.48% 4.04% 10.04% 2.81% 8.34%


 


Sources: Driehaus Capital Management LLC, Morgan Stanley Capital International Inc.

*Inception Date: 7/1/2001

The performance data represents the strategy’s composite of inernational small cap growth accounts managed by Driehaus Capital Man­agement LLC (DCM) (the composite). These returns are estimated for the period as all underlying accounts have not yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts. The performance data shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Please see the notes section for other important information.

The performance results for the Composite are shown in comparison to an index. While the securities comprising the indices are not identical to those in any account in the Composite, the Company believes this may be useful in evaluating performance. Unlike the Composite, the index is not actively managed and does not reflect the deduction of any advisory or other fees and expenses.

1The Morgan Stanley Capital International (MSCI) AC World ex USA Small Cap Growth Index is a market capitalization-weighted index designed to measure equity performance in global developed markets and emerging markets, excluding the U.S and is composed of stocks which are categorized as small capitalization stocks. Data is in US Dollars. The net dividend (ND) index is calculated with net dividend reinvestment. The gross dividend (GD) index is calculated with gross dividend reinvestment. The benchmark has changed from the MSCI AC World ex USA Small Cap Growth Index (GD) to the MSCI AC World ex USA Small Cap Growth Index (ND) because the net index is more commonly used industry wide and is a more representative comparison versus the strategy because it is presented net of foreign withholding taxes.

For additional disclosure on the Composite, please click here.

Important MSCI disclosures

 

 


Portfolio Characteristics*

as of 6/30/2017 | updated quarterly
  Strategy Benchmark
Number of Holdings 110 2,430
Weighted Avg. Market Cap (M) $3,845 $2,396
Median Market Cap (M) $2,877 $909
Est. 3-5 Year EPS Growth 17.9% 16.5%
Active Share (3-year avg.)** 91.76 n/a
Market Cap Breakout
< $5 billion 72.8% 90.9%
$5 - $15 billion 27.2% 9.1%
> $15 billion 0.0% 0.0%
Risk-adjusted and Risk Characteristics (5-year period)
Annualized Alpha 5.24 n/a
Sharpe Ratio 1.26 0.85
Information Ratio 0.86 n/a
Beta 0.88 1.00
Standard Deviation 11.10 11.38
Tracking Error 5.05 0.00
R Squared 0.81 1.00

 

Sector Weightings

as of 6/30/2017 | updated quarterly
  Strategy Benchmark
Consumer Discretionary 21.6% 18.1%
Consumer Staples 7.5% 8.9%
Energy 4.4% 2.3%
Financials 3.6% 6.0%
Health Care 9.7% 11.3%
Industrials 26.8% 21.6%
Information Technology 10.2% 16.0%
Materials 8.3% 8.3%
Real Estate 3.0% 5.3%
Telecommunication Services 1.2% 1.1%
Utilities 0.0% 1.2%
Cash 3.7% 0.0%

 

Country Weightings

as of 6/30/2017 | updated quarterly
  Strategy Benchmark
Argentina 0.6% 0.0%
Australia 2.4% 4.5%
Austria 3.8% 0.6%
Belgium 1.2% 1.1%
Canada 11.1% 6.7%
China 1.5% 2.6%
Denmark 1.6% 1.5%
Finland 3.2% 0.6%
France 5.6% 3.4%
Germany 10.8% 5.5%
Hong Kong 1.3% 3.1%
Indonesia 0.5% 0.5%
Isle Of Man 3.6% 1.5%
Italy 2.1% 2.3%
Japan 19.6% 21.4%
Jersey 0.5% 0.0%
Luxembourg 1.6% 0.6%
Mexico 0.7% 0.7%
Netherlands 0.8% 1.6%
Norway 0.8% 0.7%
Philippines 0.5% 0.2%
Russia 1.0% 0.1%
South Africa 0.6% 1.1%
South Korea 2.1% 3.5%
Sweden 2.7% 4.6%
Switzerland 3.1% 3.1%
Turkey 1.4% 0.2%
United Kingdom 11.0% 10.6%
United States 0.5% 0.3%
Cash 3.7% 0.0%

 

Top 5 Holdings***

as of 7/31/2017 | updated monthly
1. Teleperformance SE 1.6%
2. Carl Zeiss Meditec AG 1.6%
3. Clinigen Group Plc 1.5%
4. Ams AG 1.4%
5. B&M European Value Retail SA. 1.4%

 

 


Sources: Driehaus Capital Management LLC, Factset Research Systems, Inc., eVestment Alliance
Benchmark: MSCI AC World ex USA Small Cap Growth Index
*Portfolio characteristics represent the strategy’s composite
**Data is calculated monthly.
***Holdings subject to change.

TERMS: Active share represents the share of portfolio holdings that differ from the benchmark index holdings. Average drawdown is the arithmetic average of declines in value during a given period of time. Downside risk is a measure of the average deviations of a negative return series. A large downside risk implies that there have been large swings or volatility in the manager’s return series. Beta is a measure of a portfolio’s volatility. A beta of 1.00 implies perfect historical correlation of movement with the market. A higher beta manager will rise and fall more rapidly than the market, whereas a lower beta manager will rise and fall slower. Standard deviation is a measure of the average deviations of a return series from its mean; often used as a measure of portfolio volatility. A large standard deviation implies that there have been large swings or volatility in the manager’s return series. Tracking error measures of the amount of active risk that is being taken by a manager. Tracking error accounts for the deviation away from the benchmark and does not indicate in which direction it occurred, either positive or negative. Alpha is the measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. Sharpe ratio is calculated by finding the portfolio’s excess return and then dividing by the portfolio’s standard deviation. Information Ratio (IR) measures a portfolio manager’s ability to generate excess returns relative to a benchmark, but also attempts to identify the consistency of the investor. This ratio will identify if a manager has beaten the benchmark by a lot in a few months or a little every month. The higher the IR the more consistent a manager is and consistency is an ideal trait. R-Squared is a statistical measure that represents the percentage of a fund or security’s movements that can be explained by movements in a benchmark index. For fixed-income securities, the benchmark is the T-bill. For equities, the benchmark is the S&P 500.

For additional disclosure on the Composite, please click here.

 


Composite Notes

Driehaus Capital Management LLC (DCM) is a registered investment adviser with the United States Securities and Exchange Commission (SEC). DCM provides investment advisory services using growth equity strategies to individuals, organizations, and institutions. The firm consists of all accounts managed by DCM (the Company). Prior to October 1, 2006, the firm included all accounts for which Driehaus Capital Management (USVI) LLC (DCM USVI) acted as investment adviser. On September 29, 2006, DCM USVI ceased conducting its investment advisory business and withdrew its registration as a registered investment adviser with the SEC. Effective September 30, 2006, DCM USVI retained DCM as investment adviser to these portfolios.

DCM claims compliance with the Global Investment Performance Standards (GIPS®).

This performance information is estimated for the period as not all underlying accounts have yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts.The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

COMPOSITE OBJECTIVES AND ACCOUNTS ELIGIBLE FOR THE INTERNATIONAL SMALL CAP GROWTH COMPOSITE
The International Small Cap Growth Composite (the Composite) presented includes all unleveraged "international small cap growth" accounts over which the Company exercises discretionary investment authority of both cash and equities using the same investment objective and philosophy. The Composite was created in July 2001.

An account is considered to be an international small cap growth account if it seeks to maximize capital appreciation through active investment primarily in equity securities of smaller capitalization, non-U.S. companies exhibiting strong growth characteristics. Under normal market conditions, the style invests at least 80% of total net assets in the equity securities of non-U.S. small capitalization companies.

Once an account has met the above criteria and is fully invested, it is included in the Composite in the next full monthly reporting period. Accounts that change investment strategies are transferred between composites in the first full monthly reporting period in which the account is managed under the new style. Terminated accounts are excluded from the Composite in the first month in which they are not fully invested as of the end of the month.


Photo of David Mouser

David Mouser

Lead Portfolio Manager

David Mouser is the lead portfolio manager for the Driehaus International Small Cap Growth strategy. In his role as lead portfolio manager he is responsible for the strategy's portfolio construction and buy/sell decisions. He is also involved in daily tracking of the portfolio performance as well as macro-level trends and the market environment. Prior to being named lead portfolio manager, Mr. Mouser had co-portfolio manager and assistant portfolio manager responsibilities for the strategy and its predecessor limited partnership since 2005.

Mr. Mouser joined Driehaus Capital Management in 1999 as a global research associate and domestic research assistant. Prior to assuming portfolio management responsibilities he was an analyst on the Micro Cap Growth strategy and a long-short strategy. He received his B.S. in finance from the University of Dayton in 1999.


Photo of David Mouser

Daniel Burr

Portfolio Manager

Daniel Burr is portfolio manager for the Driehaus International Small Cap Growth strategy. In this role, he is responsible for idea generation, portfolio construction, security selection and investment research.

Mr. Burr began his career at First Manhattan Consulting Group as an analyst from 2000 to 2001. Prior to joining Driehaus in 2013, Mr. Burr worked at Oberweis Asset Management Inc. from 2008 to 2013 and left with the title of senior international equity analyst. He received his B.S. in applied economics and business management from Cornell University in 2000 and completed his MBA in 2006 with concentrations in finance and accounting from the University of Chicago Booth School of Business.


Photo of Ryan Carpenter

Ryan Carpenter

Assistant Portfolio Manager

Ryan Carpenter is the portfolio manager for the International Realty strategy. In his role as portfolio manager he is responsible for the strategy's portfolio construction and buy/sell decisions. He is also involved in daily tracking of the portfolio performance as well as macro-level trends and the market environment. Mr. Carpenter is also the assistant portfolio manager for the International Small Cap Growth strategy. In his role as assistant portfolio manager he is responsible for providing depth of leadership to the research team and identifying appropriate investment ideas relevant to the strategy. Additionally, Mr. Carpenter acts as a senior analyst focusing on developed small cap stocks within the consumer discretionary, consumer staples and financials sectors.

Mr. Carpenter began his career at Driehaus Capital Management as a research intern in 2005. He received his B.A. in finance from the University of Illinois at Chicago in 2007.

 

 

Strategy Literature

Monthly Strategy Fact Sheet
Quarterly Commentary and Attribution
June 30, 2017
Global Market Outlook
June 2017

 

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