Brandes Small Cap Value Fund Increases Stake in Globant (GLOB), Citing Growth and Strategic Shifts

The Brandes Small Cap Value Fund has revealed a new investment in Globant (GLOB), signaling increased conviction in the company’s long-term growth prospects. The fund’s stake marks a strategic allocation shift within its portfolio, driven by a confluence of operational and market-driven factors. Globant, a leading digital transformation and software services provider, has demonstrated consistent revenue expansion over the past two fiscal years, with year-over-year growth reaching 18% in Q3 2025, surpassing peer averages in the mid-cap IT services sector. The fund’s decision follows a series of positive development milestones, including the successful integration of acquired European digital agencies, which contributed $47 million in incremental revenue during the third quarter. Additionally, Globant reported a 120-basis-point improvement in EBITDA margin, rising to 16.3%, driven by operational efficiencies and higher-margin service mix. These financial indicators suggest enhanced scalability and margin resilience in a competitive IT services environment. The investment comes amid broader market repositioning toward high-conviction small-cap value names with sustainable growth profiles. GLOB’s market capitalization of approximately $5.8 billion places it at the upper end of the small-cap spectrum, making the fund’s entry noteworthy. Analysts note that institutional buying activity in GLOB has increased by 23% over the past 30 days, with elevated trading volume indicating growing interest. The move is expected to influence investor sentiment, potentially attracting further passive and active capital into the stock. Small-cap technology investors, especially those focused on digital transformation and emerging markets, may view this as a validation of Globant’s strategy. The fund’s involvement could also serve as a benchmark for similar small-cap reevaluations in the software services space.