Investment Focus

Royce offers a collection of distinct small-cap investment strategies offers portfolios with different risk/return profiles that aim to meet a variety of investors' needs.

What does each Fund have in common?

  • Active, bottom-up, risk-conscious, and fundamental investment approach
  • Experienced small-cap portfolio managers
  • High active share, significant manager investment

What makes each Fund different?

  • Investment styles that focus on companies with specific attributes including, attractive valuations, premium quality companies, or companies with significant growth potential
  • Investable market caps that range from micro-cap to small-cap to mid-cap
  • Volatility levels and approaches to risk management


Each of our portfolio managers uses an active, bottom-up, risk-conscious, and fundamental investment approach that aligns with one of the following styles.


Emphasizes attractive valuation as one of the primary stock selection criteria
  • Seeks companies trading at a significant discount to Royce’s estimate of the business's worth and/or
  • Statistically inexpensive companies with low price-to-book or price-to-sales ratios


Portfolios in this group use one of two distinct approaches
  • The first focuses on high-quality companies with histories of attractive, sustainable returns on invested capital
  • The second utilizes a combination of our value and growth strategies with selected high-quality companies


Invests in companies with above-average growth potential driven by organic revenue expansion
  • Seeks businesses benefiting from growth themes/trends
  • Focuses on companies with sustainable competitive advantage

Market Cap

Market cap defines the size of the companies in each Fund’s primary investment universe.


Companies with market caps up to $1B.
  • Stocks may often be inefficiently (and thus attractively) priced
  • May have higher volatility than small-cap or mid-cap stocks
  • More than 3,370 companies*


Companies with market caps up to $3B
  • Stocks have more research coverage than micro-caps, but also greater liquidity
  • Lower volatility than micro-caps, but higher volatility than mid-caps
  • More than 4,240 companies*


Companies with market caps up to $15B
  • Many stocks are established businesses with long histories of steady profitability
  • Lower volatility than micro-cap or small-cap stocks
  • More than 5,035 companies*

* Source: Reuters as of 6/30/15


Royce Funds fall into one of five volatility levels based on that Fund’s relative volatility compared with its Morningstar peer group.


Below Average


Above Average


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About Us

Small-cap equity specialists offering mutual funds with distinct investment strategies designed to meet specific investor needs.

Learn more about The Royce Funds

Firm Culture

Our culture aligns the interests of each employee at Royce with those of our Funds’ shareholders.

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Our History

We’ve been cultivating our unique small-cap focus for more than four decades.

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Contact Us

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