International Small-Cap Specialists

Watch Intro Video

Philosophy 

International Small-Cap Equity Opportunity
  • We believe the international small-cap universe is inefficient due to often poor management disclosure practices, sparse analyst coverage, and a natural institutional preference for larger companies in well-known industries
  • Though international companies make up over 90% of all listed companies worldwide (and growing), the majority of the buy- and sell-side research is focused on the US market1
  • Structural changes like MiFID II in Europe have reduced the number of sell-side analysts, resulting in declining coverage of non-US small-cap companies
  • Kabouter is willing to invest the time and energy to find these undiscovered gems and then pushes to get them discovered by the rest of the investment community.
Watch Outlook Video

The Markets in Financial Instruments Directive II (“MiFID II”) went live on January 3, 2018. MiFID II is a set of regulations passed into law across Europe in 2014. Investment managers subject to MiFID II must now pay separately for equity research produced by the sell-side, rather than as part of other services like trading execution. Note: Kabouter is not subject to MiFID II.

/ˌkaːˈbɑu̯.tər/

In Dutch folklore, kabouters (or gnomes) are known for being curators of wealth and stewards of the environment

Peter Zaldivar, JD, CFA | Principal & Senior Portfolio Manager

Prior to co-founding Kabouter Management, LLC, Peter was a Principal of Wanger Asset Management where he co-managed the Wanger International Small-Cap Fund, a five-star Morningstar rated fund. He also worked as an international equities analyst for the international small cap fund and all other international funds managed at Wanger. In all, he had direct responsibility for managing over $700 million in international small and mid-cap stocks. Prior to working at Wanger, he was Vice President of Lord Asset Management, a Chicago-based value investor for pension and endowment clients, where he worked on US and Japanese portfolios. Peter speaks or has studied Spanish, Japanese, Mandarin and Korean. Peter co-authored two research papers titled Anatomy of the Small-Cap Anomaly and the Importance of Investor Relations in Unlocking Value in International Equities. Both papers were reviewed by faculty at the University of California at Berkeley and the University of Chicago. He graduated Phi Beta Kappa with a B.A. from the University of Wisconsin at Madison, holds a J.D. from Harvard Law School, and is a CFA charterholder.

Marcel Houtzager, CFA | Principal & Senior Portfolio Manager

Prior to co-founding Kabouter Management, LLC, Marcel was a Principal of Wanger Asset Management, where he co-managed the Wanger International Small-Cap Fund, a five-star Morningstar rated fund, the Acorn Foreign Forty Fund, and the Wanger Foreign Forty Fund. Marcel also served as an international equities analyst for these funds and for all other international funds managed at Wanger. In all, he had direct responsibility for managing over $1.0 billion in international small and mid-cap stocks. Prior to working at Wanger, he was an analyst at Steiner Diamond & Co., a Chicago-based investment firm, and a manager in the litigation consulting department at Price Waterhouse in San Francisco. Marcel possesses varying degrees of fluency in Dutch, Portuguese, French, and German. Marcel co-authored two research papers titled Anatomy of the Small-Cap Anomaly and the Importance of Investor Relations in Unlocking Value in International Equities. Both papers were reviewed by faculty at the University of California at Berkeley and University of Chicago. He has a B.A. from Pomona College, an M.B.A. from the University of California, Berkeley, and is a CFA charterholder.

Approach

Singular focus: Aim to invest in sustainable, structurally growing international micro- and small-cap equities

Methodical process: Strive to uncover mispriced equities and conduct deep fundamental company research

ESG analysis: Typically integrated into the investment process to help manage material risks and identify possible opportunities
Conviction: Seek to construct concentrated portfolios based on our highest-conviction ideas
Friendly engagement: Work to improve visibility and encourage business practices that may promote discovery
Aligned and diverse team: 100% employee-owned, minority firm committed to fostering diversity of thought
Capacity discipline: Proactively close strategies to help preserve alpha opportunities for existing clients

Strategies

International
Micro-Cap Equity

International
Small-Cap Tax-Managed

International
Small-Cap Equity

Japan Equity Portfolio

International
Micro-Cap Equity

International
Small-Cap Tax-Managed

International
Small-Cap Equity

Japan Equity Portfolio

About

/ˌkaːˈbɑu̯.tər/

Headquartered in Chicago with a satellite office in the San Francisco Bay Area, Kabouter is a minority-owned investment adviser registered with the United States Securities and Exchange Commission (SEC). Kabouter was founded in 2003 by Marcel Houtzager and Peter Zaldivar, who each have over 25 years’ experience investing in international markets. Prior to forming Kabouter, the founders were principals at Wanger Asset Management, where they co-managed international equities portfolios beginning in 1996.

Marcel Houtzager, CFA

Principal & Senior Portfolio Manager

Peter Zaldivar, JD, CFA

Principal & Senior Portfolio Manager

Singular focus on international small-cap equities with a dedicated team of 7 investment professionals and 8 operations professionals

100%

Employee Owned

67%

Senior Management
Represented by Minorities and Women

86%

Investment Team
Represented by Minorities and Women

73%

Employees
Represented by Minorities and Women

12+

Languages Spoken

All information as of December 31, 2025