A Disciplined Approach to Small-Cap Investing

Hallmarks of Our Approach

We are focused on risk, absolute value, and a long-term investment horizon.
Investment Universe

Our universe consists of micro-cap, small-cap, and mid-cap companies.
Portfolio Approach

Our portfolios are either Broadly Diversified or Focused.
Stock Selection

We're looking for strong balance sheets and returns on capital.
Buy/Sell Discipline

We are looking to buy at a discount and sell before a company is overvalued.
Risk Management

We seek to manage business risk, valuation risk, and portfolio risk.

The Royce Funds' Unique Culture

We have always cherished certain values here at Royce, and those values inform everything that we do. — Chuck Royce

From our firm's inception almost 40 years ago, Chuck Royce established a culture that aligned the interests of each employee at Royce & Associates with those of our Funds' shareholders.

That core tenet is alive and well today and is demonstrated by Royce employees often being the largest individual shareholders in many of our portfolios.

We not only take a long-term approach toward our investments, we also take a long-term approach to our people.

     

Small Talk: 20 Questions with Chuck Royce, Chris Clark, and Francis Gannon

Illustration of Chuck Royce and Whitney George

CEO and Portfolio Manager Chuck Royce, President and Co-CIO Chris Clark, and Co-CIO Francis Gannon discuss what they believe sets Royce's investment style apart.

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A Style Cultivated Over Four Decades

Chuck Royce began managing our flagship fund, Royce Pennsylvania Mutual Fund, in 1972 and it bears the earliest imprints of our style.

Lower Manhattan in the 1970s

New York in 1972

Letter from Chuck announcing management for Pennsylvania Mutual Fund

Letter from Chuck announcing management for Pennsylvania Mutual Fund

Our Beginnings

Chuck Royce, Director of Research at a small Wall Street firm, bought Quest Advisory Corporation and gradually assumed management of Royce Pennsylvania Mutual Fund in 1972. It was an opportune time for a young investment manager with a new approach: value investing in small-cap stocks.

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Tom Ebright and Chuck Royce

Tom Ebright and Chuck Royce

Developing our Discipline

Our version of value investing continued to focus on fundamental criteria such as a company's balance sheet, income statement, and financial history in part because of our discipline's cynical perspective on anyone's ability (including our own) to know precisely where the market is headed and when it will move there.

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Chuck Royce on the cover of Fee Advisor, 1995

Chuck Royce on the cover of Fee Advisor, 1995

Chuck Royce with The Royce Funds team at the listing of Royce Micro-Cap Trust on the NYSE

Chuck Royce with The Royce Funds team at the listing of Royce Micro-Cap Trust on the NYSE

Small-Cap Sector Expands, Micro-Caps Emerge

During the '90s, the small-cap sector grew more popular while the parameters of what constitutes small-cap expanded by the middle of the decade to include companies with market capitalizations up to $1 billion.

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The Royce Funds team

The Royce Funds Team

The New Millennium

Arguably our most challenging decade, these years were distinguished by the extraordinary Internet bubble, the horrific events of 9/11, a real estate crash, and the worst global financial crisis since the Great Depression.

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Chuck Royce celebrates 40 years with Pennsylvania Mutual Fund

Chuck Royce celebrates 40 years with Pennsylvania Mutual Fund

Royce Today

Royce & Associates offers today's investor 40 years of experience coupled with an ongoing commitment to an investment style founded on consistency and discipline; one that emphasizes building long-term returns while reducing risk.

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Office

Being based in New York City gives us amazing access to meeting with companies.

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People

Meet our seasoned staff of more than 30 investment professionals.

Our Portfolio Managers and Staff

Funds

The Royce Funds includes 30 open-end mutual funds, three closed-end funds, and two open-end mutual funds offered to variable annuity and variable life insurance companies.

Our Funds
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Illustrations

Drawings from our Annual and Semiannual Report and Review by Hank Blaustein.

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