International Small-Cap Specialists
Philosophy
- 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 almost 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.
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 environmentPeter 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
Friendly engagement: Help improve visibility and business practices to promote discovery
Strategies
International
Micro-Cap Equity
International
Small-Cap Equity
International Small- to Mid-Cap Equity
Emerging Markets Small-Cap Equity
International
Micro-Cap Equity
- Launched 2004
- Closed (due to capacity) 2012
- Limited Capacity
International
Small-Cap Equity
- Launched 2006
- Open to new capital
International
Small- to Mid-Cap Equity
- Launched 2013
- Open to new capital
Emerging Markets
Small-Cap Equity
- Launched 2018
- Open to new capital
About
/ˌkaːˈbɑu̯.tər/
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 11 investment professionals and 15 operations professionals
100%
Employee Owned
80%
Senior Management
Represented by Minorities and Women
82%
Investment Team
Represented by Minorities and Women
69%
Employees
Represented by Minorities and Women
12+
Languages Spoken
All information as of December 1, 2022
Affiliations
