Risk, Volatility, and Royce Total Return Fund

by Chuck Royce and Jay Kaplan

How has Total Return fared in down market periods relative to its benchmark and peers? ...
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Research & Whitepapers

Our Case for Active Management

Our focus has always been on seeking to provide our shareholders with above-average long-term results on both an absolute and risk-adjusted basis—not on beating our respective benchmarks.

Research & Whitepapers

Rolling Returns: A Better Way to Measure Performance

Though calendar-year returns are among the most common measures of portfolio performance, rolling returns arguably offer a robust analysis.

Research & Whitepapers

Understanding The Royce Funds' 1Q16 Performance

by Steve Lipper

With a strong performance across The Royce Funds lineup in the first quarter, Senior Investment Strategist Steve Lipper examines the value, core, and growth funds.

Investment Approach

The Economy's Journey into Uncharted Waters

by Charlie Dreifus

Portfolio Manager Charlie Dreifus's observations on current Fed policy and how the globe's continuing dependence on monetary stimulus has kept the markets in uncharted waters.

Market Perspective

Does the Shift to Value Signal a Shift to Active Management?

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon discuss the first quarter, which saw a sharp down and sharp up, and the transition from growth to value and non-earners to earners.

Market Perspective

An Encouraging Market Turn For a Disciplined Contrarian

Portfolio Manager Jay Kaplan looks at the recent market shift and discusses his contrarian approach with current holdings in retail and energy.

Fund Focus

Is Value Just Getting Started?

by Francis Gannon

Co-CIO Francis Gannon examines the resurgence of value throughout the market and notes that small-cap stocks first showed signs of tilting that way following the small-cap peak on 6/23/15.

The Blog

The Royce Funds Show Shift, Outperform YTD

by Chris Clark and Francis Gannon

Royce's Co-CIOs Chris Clark and Francis Gannon on The Royce Funds' recent performance turnaround.

Investment Approach

Fundamentals Rule Small-Caps in 1Q16

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon look at the resurgence in value, the small-cap bottom in mid-February, and the earnings-driven performance reversal in the first quarter.

Market Perspective

Small-Caps Shift in a Wild Quarter

In a volatile quarter full of downs and ups, equity returns wound up close to where we started in 2016. Underlying these unremarkable results was the real story-the leadership shift to small-cap value.

Market Perspective

The Small-Cap Market in 2016

by Francis Gannon

Co-CIO Francis Gannon discusses the current bear market and why he sees it as an opportunity within the small-cap space.

Market Perspective

Time for Value?

by Francis Gannon

We wholeheartedly agree with the conclusion drawn by the recent Barron's cover story that surveys the current market and sees a significant leadership shift for value over growth.

The Blog

What's Working in the Current Market?

by Jay Kaplan

Portfolio Manager Jay Kaplan looks at three holdings in the trucking and transport industry, which is bucking the market's downward trend in 2016.

Investment Approach

2016 Outlook for Royce Total Return Fund

by Jay Kaplan

Portfolio Manager Jay Kaplan offers his outlook for Royce Total Return Fund and discusses opportunities in the Consumer and Industrial sectors for the Fund.

Fund Focus

Four Reversals in the Market

by Francis Gannon

Co-CIO Francis Gannon looks at the four substantial market reversals that have occurred within the last year, and how these will impact active managers.

Market Perspective

The Importance of Dividends in Small-Cap Investing

In the small-cap asset class we view dividends as a key component of strong, long-term total returns.

Research & Whitepapers

Wild Swings and Black Swans

by Charlie Dreifus

Portfolio Manager Charlie Dreifus offers his insights and observations on the wild ride to nowhere that was 2015 and the crazy swings that have so far marked 2016.

Market Perspective

A Wild Start to 2016 Follows an Eventful 2015

After an eventful 2015 and a wild start to 2016, the question is: Where are we now? In spite of a long and chilling list of risks, we're guardedly optimistic about the prospects for active small-cap management.

Market Perspective

Royce Opportunity Fund Review and Outlook

by Bill Hench

Portfolio Manager Bill Hench looks at Royce Opportunity Fund’s performance in 2015, and explains what drives his optimism for the portfolio in 2016.

Fund Focus

A Disciplined Strategy Will Prove Its Merits

by Charlie Dreifus

Portfolio Manager Charlie Dreifus reviews 2015 performance for Royce Special Equity Fund and details the portfolio's disciplined strategy.

Fund Focus

Small Talk: Positioning The Royce Funds for 2016

Five small-cap portfolio managers share how they are positioning their Funds for 2016.

Market Perspective

Chuck Royce & Francis Gannon: Small-Cap Review and Outlook

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon look back at 2015, discuss signs such as widening credit spreads that signal a possible return to normalcy, and examine the prospects for active managers.

Market Perspective

A Market in Transition?

In the fourth quarter of this volatile year equities rebounded and the Fed (finally) raised interest rates, which we believe points to a market in transition.

Market Perspective

Signs of a Market Turning

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon look at the volatile fourth quarter, the credit markets, and recent signs that the market is turning gradually back to steady profitability and strong balance sheets.

Market Perspective

What Has Driven Healthcare's Success?

by Carl Brown

Few places in the equity market have matched the performance of health-related stocks over the last few years. Portfolio Manager Carl Brown discusses some of the major factors behind its success.

Global/International

Seizing Opportunities When the Market Pulls Back

by Chip Skinner

Portfolio Manager Chip Skinner looks at the current volatile market and explains how a GARP investor tries to take advantage of market corrections.

Investment Approach

The Fed Raises Rates—Why U.S. Stocks Still Look Pretty Good

by Charlie Dreifus

What does the Fed's modest rate increase mean for U.S. stocks and the economy?

Market Perspective

What Makes The Current Market Cycle Unique?

by Chuck Royce and Francis Gannon

CEO Chuck Royce draws a few parallels between the past several years and the Internet bubble of the late '90s while discussing how today's environment has so far had a different outcome.

Market Perspective

Is Biotech in a Bubble?

by Carl Brown

Portfolio Manager Carl Brown discusses valuations in the biotech industry.

Market Perspective

Growth Themes Benefiting from a Steady Economy

by Chip Skinner

The volatile market is creating both successes and opportunities for our GARP portfolio, Royce Smaller-Companies Growth Fund.

Fund Focus

How Does Market Volatility Usually Affect Investing in Small-Caps?

by Jay Kaplan

To us, volatile periods provide opportunities to purchase quality stocks at a discount.

Market Perspective

How Should an Asset Allocator Think About The Royce Funds Today?

by Steve Lipper and Francis Gannon

While each Royce portfolio uses a disciplined, bottom-up approach to stock selection, our varied investment approaches give investors options depending on where they think the economy and markets are heading.

Investment Approach

Managing a Portfolio of Premier Businesses

by Steven McBoyle and Lauren Romeo

Portfolio Managers Lauren Romeo and Steven McBoyle share the lessons they've learned from working with Chuck Royce.

Fund Focus

What Makes Royce Smaller-Companies Growth Fund Unique?

by Chip Skinner

Portfolio Manager Chip Skinner talks about the distinctive Growth at a Reasonable Price (“GARP”) approach he uses in Royce Smaller-Companies Growth Fund.

Fund Focus

Does A Rate Hike = Normal?

by Charlie Dreifus

With an interest rate increase looking all but certain to us, what are the prospects for stocks and the economy?

Market Perspective

3 Unusual Aspects of the Current Market

by Francis Gannon

What anomalies have characterized the market over the past several years, and what signs have we seen that these irregularities are reversing?

Market Perspective

Will Rate Increases Impact Investing in Dividend-Paying Companies?

by Jay Kaplan

To Portfolio Manager Jay Kaplan, the ways in which dividend income is generated and distributed could play a major role in determining the effects a rise in rates might have on dividend investors.

Investment Approach

Chuck Royce on the Current State of the Small-Cap Market

by Chuck Royce and Francis Gannon

Is the recent small-cap correction signaling a shift in investor preferences?

Market Perspective

Staying Diversified in the Pursuit of Sustainable Growth

by Chip Skinner and Carl Brown

With growth as their primary objective, Portfolio Managers Chip Skinner and Carl Brown have found recent successes in the Health Care and Consumer sectors.

Fund Focus

Market Reversals Are on the Horizon

The volatile third quarter was characterized by the largest declines for U.S. stocks in four years, small-cap value reasserting leadership over small-cap growth, U.S. large-caps outperforming small-caps, and steep losses for Energy, Materials, and Health Care within the Russell 2000.

Market Perspective

Recent Volatility Signals a Market in Transition

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon talk about why they believe the recent tumult in the market, as well as the waning of the Fed's interventionist policies, is ultimately a positive sign for disciplined, active small-cap approaches.

Market Perspective

Why Consider Royce Global Financial Services Fund?

by Chuck Royce

Unique among our product lineup, Royce Global Financial Services Fund explores the long-term, secular opportunities within the Financials sector.

Fund Focus

Royce Premier Fund: Looking for Enduring Franchises

by Steven McBoyle and Lauren Romeo

Portfolio Managers Lauren Romeo and Steven McBoyle on the characteristics they like to see in potential portfolio candidates.

Fund Focus

Micro-Cap Opportunity Fund: Exploiting Market Inefficiencies

by Bill Hench

A detailed look into Portfolio Manager Bill Hench's four opportunistic investment themes and how he manages risk in an inherently riskier part of the market.

Fund Focus

The Benefits of Being Temporarily Out of Favor

by Lauren Romeo

Investor preferences have not been kind to our style of investing over the past couple of years—and this has created opportunities.

Market Perspective

Searching for Sustainable Growth in Malaysia

by Dilip Badlani

Focusing on non-U.S. companies that have the ability to grow irrespective of market environments.

Global/International

Near-Term Headwinds Offer Attractive Buying Opportunities

by Steven McBoyle and Lauren Romeo

Portfolio Managers Steven McBoyle and Lauren Romeo give their outlook for small-cap stocks and discuss the sectors in which they're finding opportunities.

Market Perspective

U.S. Small-Caps: A Look Forward and a Look Back

by Bill Hench

A deeper look into the small-cap market's strong long-term returns suggests that there is still untapped potential in stocks investors have mostly passed by.

Market Perspective

How Are We Responding to This Challenging Period?

by Chuck Royce and Francis Gannon

While our underlying process has not changed, we have made several adjustments that we believe will strengthen the firm for the future.

Investment Approach

Is the Small-Cap Market Out of Joint?

by Chuck Royce, Chris Clark, and Francis Gannon

Were shifting investor preferences in the first half, led most notably by a GDP growth scare in the first quarter, an indication of how the landscape for small-cap stocks might look when markets begin to normalize?

Market Perspective

Taking Stock of the Changing Environment

by Chris Clark

President Chris Clark addresses the challenges we face as a firm and how we're making strides to better serve our clients.

Investment Approach

Royce Smaller-Companies Growth: Seeking Emerging Industry Leaders

by Chip Skinner and Chuck Royce

Listen to Portfolio Manager Chip Skinner share the details of his investment approach in Royce Smaller-Companies Growth Fund with CEO Chuck Royce.

Fund Focus

The Foundations for Royce's Future Success

by Chris Clark

Royce's President Chris Clark reflects on his first year in this leadership role, the performance challenges we face, and how we are positioning the business for the long-term benefit of our shareholders.

Investment Approach

Royce International Premier: A Portfolio of World-Class Businesses

by David Nadel and Chuck Royce

CEO Chuck Royce and Portfolio Manager David Nadel discuss the types of companies we like to own in International Premier's portfolio and how we evaluate candidates.

Global/International

Micro-Caps Look Attractive in an Expanding Economy

by Bill Hench

Several sectors and industries within micro-cap appear compelling in a normalizing economy.

Investment Approach

2Q15 Market: Is a More Normalized Environment on the Horizon?

by Francis Gannon

Will higher volatility follow high returns as the economy continues to strengthen and rates rise?

Market Perspective

More Volatility: A Positive Environment for Active Managers

by Chuck Royce and Francis Gannon

CEO Chuck Royce and Co-CIO Francis Gannon discuss second-quarter results for small-caps and the prospects for active management in an environment poised for a hike in interest rates, lower returns, and increased volatility.

Market Perspective

Royce Global Financial Services: A Sector Fund with a Difference

by Chuck Royce and Chris Clark

A discussion about the secular opportunities—both domestically and abroad—that make financial services an appealing space for long-term investors.

Fund Focus

Small-Cap Value Fund: Trying to Profit from Low Expectations

by Jay Kaplan and Francis Gannon

As contrarian investors, our portfolio positioning is often at odds with the market's consensus.

Fund Focus

What is Royce Smaller-Companies Growth Fund?

by Chip Skinner and Carl Brown

Looking for growth at a reasonable price.

Fund Focus

Total Return: Managing Risk by Investing in Dividend-Paying Stocks

by Jay Kaplan and Francis Gannon

At Royce, we're more interested in a company's ability to pay dividends over time than we are high yields.

Fund Focus

Positioned for Increased Consumer Spending

by Chip Skinner and Carl Brown

Are a decline in the unemployment rate and lower gas prices creating a more favorable backdrop for consumer spending?

Investment Approach

Can a Slow-Growth Environment Create Opportunities?

by Bill Hench

Portfolio Manager Bill Hench is taking advantage of current market and economic conditions.

Market Perspective

Collecting High-Quality Stocks for the Long Term

by Chuck Royce and Francis Gannon

A close look at the characteristics we typically seek for this Royce portfolio.

Fund Focus

The Market and U.S. Economy from a Small-Cap Perspective

by Jay Kaplan and Francis Gannon

Why owning high-quality companies, especially during periods of uncertainty, may have long-term benefits for patient, fundamental investors.

Market Perspective

On the Road to Normal

by Charlie Dreifus

Despite uncertainty over the pace of economic growth, one thing remains clear—an increase in interest rates is still on the horizon.

Market Perspective

What's Driving M&A in the Healthcare Space?

by Chip Skinner and Carl Brown

Is a growing appetite for new assets a benefit for small-caps?

Market Perspective

Energy, Interest Rates, and Risk Management Today

by Chuck Royce and Francis Gannon

Investing in quality businesses as the economy continues on the road to normalization.

Market Perspective

The Long Reach of Technology in Taiwan

by Jim Harvey and Dilip Badlani

Portfolio Managers Jim Harvey and Dilip Badlani report on what opportunities they are finding in Taiwan.

Global/International

Royce Pennsylvania Mutual: The Next Five Years for Our Flagship

by Chuck Royce

Here are some key takeaways for Royce Pennsylvania Mutual.

Fund Focus

What's Next for Active Small-Cap Investing?

by Chuck Royce, Charlie Dreifus, Bill Hench, Lauren Romeo, Francis Gannon, Steve Lipper, and Jack Fockler

Why the next few years will not look like the last five for small-cap stocks.

Market Perspective

Margin Levels Look Safe Despite Tepid Economic Growth

by Charlie Dreifus

While economic growth cooled in the first quarter, Portfolio Manager Charlie Dreifus believes many companies still look poised for additional incremental margin expansion.

Market Perspective

Chuck Royce on 1Q15: Will Rising Rates Benefit Active Stock Pickers?

by Chuck Royce

Chuck Royce believes the economy continues to look strong, in spite of slower growth in 2015's first quarter. What does this all mean for our risk-conscious approaches?

Market Perspective

1Q15 Market: Slow Start Leads to Solid Gains

by Jack Fockler

A bearish January gave way to solid first-quarter gains, with the small-cap Russell 2000 leading the broad-based domestic indexes.

Market Perspective

Signs of a Normalizing Market

by Chris Clark

Quantitative easing as we have known it in the U.S. has ended, and we are anticipating a more favorable environment for active management in the years ahead.

Market Perspective

The Perfect Storm for Risk-Conscious Active Managers

by Steve Lipper and Francis Gannon

How have narrow credit spreads, lower-than-average volatility, and higher-than-usual small-cap returns put pressure on active stock pickers with a quality focus?

Market Perspective

Premier: Building a High-Conviction Portfolio of Superior Businesses

by Lauren Romeo and Steve Lipper

Portfolio Manager Lauren Romeo discusses the investment strategy for Royce Premier Fund.

Fund Focus

Special Equity Fund: Looking Back at 2014 and Ahead to 2015

by Charlie Dreifus and Dave Gruber

Portfolio Manager and Principal Charlie Dreifus believes his small-cap portfolio could benefit from increased M&A activity.

Fund Focus

Bill Hench on Consumer and Tech Stocks

by Bill Hench and Jeff Smith

What consumer and technology areas most interest Portfolio Manager Bill Hench?

Investment Approach

Royce Premier: Reviewing 2014 and Positioning for 2015

by Lauren Romeo and Steve Lipper

What economic developments in the U.S. might benefit our holdings?

Fund Focus

Great Expectations for Small-Cap Active Management

by Chuck Royce, Chris Clark, and Francis Gannon

Widening credit spreads, increasing volatility, and decreasing stock correlation should allow stock pickers the chance to emerge as performance leaders.

Market Perspective

Economic Outlook and Current Opportunities

by Chuck Royce and Francis Gannon

Chuck Royce and Co-CIO Francis Gannon talk about the prospects for increased capital spending and opportunities for active small-cap management in 2015.

Market Perspective

Why Equities Should Be in Your Portfolio

by Charlie Dreifus and Dave Gruber

What kind of total return could the market produce this year?

Market Perspective

Positioning Opportunity Fund for Long-Term Results

by Bill Hench and Jeff Smith

For this Royce Fund, how we positioned the portfolio in previous years generally determines current performance.

Fund Focus

Looking at Returns in Today's Environment

by Chuck Royce and Francis Gannon

The last four years have been a period in which government intervention has largely distorted asset prices. How should investors look at performance during this time frame?

Market Perspective

Surprises in 2014 and Expectations for 2015

by Charlie Dreifus and Dave Gruber

Portfolio Manager Charlie Dreifus on interest rates, the global economy, and wage inflation.

Market Perspective

Will Active Stock Picking Be More Relevant in 2015?

by Charlie Dreifus

Portfolio Manager Charlie Dreifus believes recent developments in the U.S. equity market should favor patient investors with a quality orientation.

Market Perspective

Small-Caps Rebound in 4Q But Lag for 2014

by Jack Fockler

After a dreadful third quarter, small-caps rallied to outpace large-caps in the fourth quarter.

Market Perspective

Chuck Royce on 4Q14: Positioning for a Normalizing Economy

by Chuck Royce

While equity leadership rotated to large-cap stocks in 2014, Chuck Royce remains bullish on the long-term prospects for quality small-caps.

Market Perspective

What is a Deep Value Investor?

by Chris Flynn

Portfolio Manager Chris Flynn talks about his contrarian, deep value approach to stock picking.

Investment Approach

Avoiding Value Traps and Aggressive Growth

by Jim Stoeffel and Francis Gannon

Meeting with company management teams is one way Portfolio Manager Jim Stoeffel attempts to find value and reduce risk.

Investment Approach

Will Current M&A Activity Benefit Small-Caps?

by Lauren Romeo and Jeff Smith

Portfolio Manager Lauren Romeo on recent M&A activity in the small-cap space.

Market Perspective

Investing During Turbulent Markets

by Chris Flynn

As value investors, we believe corrections can act as an ally in our search for discounted small-cap companies.

Investment Approach

Germany and France: Looking for Quality in the Eurozone

by Jim Harvey and Dilip Badlani

Portfolio Managers Jim Harvey and Dilip Badlani report on their recent visit to Germany and France.

Global/International

A Healthy Skepticism is Key to Managing Risk

by Jim Stoeffel and Francis Gannon

Portfolio Manager Jim Stoeffel brings skills from his auditing background to his investment style.

Investment Approach

Portfolio Replenishing During Bull Markets

by Bill Hench and Dave Gruber

As a value investor, how does Portfolio Manager Bill Hench find new names in an environment of high valuations?

Investment Approach

Current Opportunities Built from Short-Term Headwinds

by Lauren Romeo and Jeff Smith

How do macroeconomic and geopolitical issues impact our investment approach?

Investment Approach

Why Should an Investor Consider International Small-Caps?

by David Nadel and Francis Gannon

How we apply our active management approach to markets overseas.

Global/International

Think About Active Management in Small-Caps

by Francis Gannon

Today, approximately 25% of the Russell 2000 Index is comprised of small-cap companies with no earnings.

Investment Approach

Finding Small-Cap Opportunities in Technology and Energy

by Jim Stoeffel and Francis Gannon

Portfolio Manager Jim Stoeffel on mobile technology infrastructure and energy services companies.

Investment Approach

Hong Kong: Looking at Commercial Rental Prices and Automotive Demand

by Dilip Badlani

Portfolio Manager Dilip Badlani returns to Hong Kong for fresh ideas and due diligence.

Global/International

Building a Database of Quality Businesses

by Steven McBoyle and Francis Gannon

Portfolio Manager Steven McBoyle on three key investment tenets that we call the enterprise conviction framework.

Investment Approach

Trick or Treat? Slow Global Growth Hits Cyclical Sectors Hardest

by Francis Gannon

How are growth concerns in Europe and Asia affecting U.S. markets?

Market Perspective

Why Consider Brazil Now?

by David Nadel

Brazil's smaller companies offer a compelling combination of compression in both valuation multiples and profit margins.

Global/International

Five Things You Should Know About U.S. Small-Caps

by Francis Gannon

What should investors know about the recent volatility and more-than-12% correction for small-cap stocks?

Market Perspective

Maintaining a Consistent Portfolio Approach

by Bill Hench

Portfolio Manager Bill Hench on the process and philosophy he and Buzz Zaino use when managing their portfolios.

Investment Approach

Royce Opportunity Fund: Looking for Success in Turnarounds

by Buzz Zaino and Bill Hench

Opportunity Fund's unique take on small-cap value investing makes it a viable choice for long-term investors with a reasonable tolerance for risk

Fund Focus

Japan: Changes in Sentiment and Tokyo's Property Market

by Dilip Badlani

Portfolio Manager Dilip Badlani reassesses the micro-cap market in Japan.

Global/International

The Royce Funds: A Culture of Discipline and Consistency

by Chris Clark

"When people find their way to Royce, they tend to stay, and it really has a very meaningful impact on our domain knowledge and the collaboration that we see across our fund lineup."

Investment Approach

The State of Small-Cap Valuations and Holding High-Confidence Names

by Jay Kaplan

As a portfolio manager who approaches stock picking with a business-buyer's perspective, what have been Jay Kaplan's biggest challenges so far in 2014?

Investment Approach

Chuck Royce on 3Q14: Is Volatility Ushering in a New Market Phase?

by Chuck Royce

The third quarter was a volatile period—with a pronounced downward bias—and offered evidence that the year-and-a-half bull market may be at its end.

Market Perspective

Capital Allocation and Risk Management

by Steven McBoyle and Francis Gannon

How does capital allocation fit into our efforts to manage risk?

Investment Approach

3Q14 Market: Small-Caps at a Relative Disadvantage

by Jack Fockler

Will small-cap underperformance in the third quarter open the door to new opportunities?

Market Perspective

How In-Depth Accounting Analysis Helps Find Good Investments

by Charlie Dreifus and Dave Gruber

Applying the lessons of the late Abe Briloff.

Investment Approach

Current Turnaround Candidates

by Bill Hench and Dave Gruber

How do these four holdings exemplify Portfolio Manager Bill Hench's investment approach?

Investment Approach

Bullish on the U.S. Manufacturing Renaissance and Cyclical Businesses

by Steven McBoyle and Francis Gannon

Portfolio Manager Steven McBoyle believes the U.S. offers a number of attractive investments.

Market Perspective

Why Large-Caps Looked Attractive to This Small-Cap Portfolio Manager

by Charlie Dreifus and Dave Gruber

Portfolio Manager Charlie Dreifus on finding opportunities in the large-cap space.

Fund Focus

Bullish on Japanese Small-Caps

by David Nadel and Francis Gannon

How is Portfolio Manager David Nadel thinking about Japan today?

Global/International

Prospects for the U.S. Economy

by Chuck Royce and Chris Clark

Chuck Royce on inflation, interest rates, M&A activity, and CAPEX.

Market Perspective

Bill Hench on Health Care and Energy

by Bill Hench and Dave Gruber

How did Portfolio Manager Bill Hench take advantage of developments in the Health Care and Energy sectors?

Market Perspective

How Quality Can Lead in the Small-Cap Market

by Chuck Royce and Chris Clark

Chuck Royce on the prospects for quality leading in small-cap and opportunities abroad.

Market Perspective

Current Opportunities in International Small-Caps

by David Nadel and Francis Gannon

Valuation disparities around the world make international small-caps an attractive source of investment opportunity.

Global/International

The Long-Term Value of Active Management in the Small-Cap Space

by Chuck Royce

A willingness to stick to one's approach—regardless of market movements and trends—is critical to long-term outperformance.

Market Perspective

Brazil: A Ripe Market for Bottom-Up Stock Pickers

by Jim Harvey and Dilip Badlani

The economic climate and political uncertainty in Brazil have created conditions that may benefit patient value investors.

Global/International

There's No Such Thing as a Sure Thing

by Jack Fockler

In this business, every asset manager must live with the reality of the scorecard.

Investment Approach

Why Individual Stock Selection Matters in Today's Environment

by Bill Hench and Dave Gruber

Our job is to find temporarily inexpensive stocks that will one day appreciate in value.

Investment Approach

Current Opportunities in Consumer Discretionary

by Charlie Dreifus and Dave Gruber

Why is Portfolio Manager Charlie Dreifus bullish on Consumer Discretionary names, particularly retailers?

Investment Approach

2014's Market So Far

by Chuck Royce and Chris Clark

Chuck Royce offers his perspective on the investment performance of The Royce Funds.

Market Perspective

Is the Improving Economy a Good Sign for Active Managers?

by Chuck Royce, Chris Clark, and Francis Gannon

Ultimately, we suspect that both the expanding economy and slower pace of returns will result in more fundamentally focused investors.

Market Perspective

Current Economic Conditions May Push Valuations Higher

by Charlie Dreifus and Dave Gruber

Slow but consistent growth has created a "Goldilocks" scenario in which the economy is not too hot, not too cold.

Market Perspective

Drawing Parallels Between Company Quality and Economic Strength

by Francis Gannon

As August begins and markets move further into 2014, it's interesting to look at first-half results in the broader context of the last five years.

Market Perspective

South Korea's Influence on Asia is Hard to Ignore

by Jim Harvey and Dilip Badlani

South Korea is the seventh-largest exporter in the world, with exports making up roughly half of the country's GDP.

Global/International

Are Small-Caps Overvalued?

by Chuck Royce and Chris Clark

What does Chuck Royce think about Janet Yellen's comments on current small-cap valuations?

Market Perspective

Equities Remain Resilient in Current Environment

by Charlie Dreifus

Portfolio Manager Charlie Dreifus on the second quarter, the current economy, and why he thinks stocks still have room to run.

Market Perspective

Hong Kong: A Rich Market for Long-Term Investors

by Jim Harvey and Dilip Badlani

Portfolio Managers Jim Harvey and Dilip Badlani are finding attractive, undervalued Hong Kong-listed Chinese companies.

Global/International

Chuck Royce on 2Q14: Fundamentals Reassert Their Importance

by Chuck Royce

The market is beginning to once again favor quality and reward investors with an active orientation.

Market Perspective

2Q14 Market: Bullish Trend Continues

by Jack Fockler

Managing Director and Vice President Jack Fockler believes the market appears to be conducive for a quality focus and active approach.

Market Perspective

Royce's Dividend-Paying Mutual Funds

by Jay Kaplan and Francis Gannon

Our dividend-paying funds focus on total return, not yield.

Fund Focus

How Operating Margins and Capital Allocation Affect Small-Caps

by Chuck Royce and Chris Clark

We look for companies that have high margins of safety and management teams that allocate excess capital sensibly and conservatively.

Market Perspective

Looking Closer at Morningstar Peer Groups for Fund Analysis

by Gunjan Banati and Francis Gannon

Are investment advisors effectively able to compare funds using Morningstar peer groups?

Market Perspective

Royce Small-Cap Value Fund's Investment Strategy

by Jay Kaplan and Francis Gannon

Jay Kaplan provides a detailed look into how he manages Royce Small-Cap Value Fund.

Fund Focus

Why Have We Been Focusing on Cyclical Growth?

by Chuck Royce and Chris Clark

Chuck Royce talks about cyclical growth opportunities in the current market.

Market Perspective

Current Opportunities for Active Management

by Chuck Royce and Chris Clark

Chuck Royce is optimistic about active management, especially in the small-cap space.

Market Perspective

When is it Time to Sell: A WWE Case Study

by Jay Kaplan

Portfolio Manager Jay Kaplan walks through the steps that led us to sell a long-held position.

Investment Approach

Chip Skinner on the Current Market and Smaller-Companies Growth

by Chip Skinner and Chris Clark

With only two small market corrections so far in 2014, Portfolio Manager Chip Skinner believes the economy is accelerating.

Market Perspective

Canadian Micro-Caps Provide Ample Opportunities

by Jim Harvey and Dilip Badlani

Canada is a resource-rich country home to many high-quality businesses that are leaders in their industries.

Global/International

How Jay Kaplan Interprets Royce's Investment Process

by Jay Kaplan and Francis Gannon

How does Portfolio Manager and Principal Jay Kaplan apply our process on a daily basis?

Investment Approach

Absolute Returns with Less Volatility: A Premise of Our Firm

by Chuck Royce and Chris Clark

Chuck Royce sits down with Co-Chief Investment Officer Chris Clark to talk about the recent shifts in the market.

Market Perspective

Our Favorite European Small-Caps

by David Nadel

Europe is home to a number of world-class businesses, many of them export oriented

Global/International

Why We're Often Bullish When the Market Turns Bearish

by Francis Gannon

Is the market finally beginning to reward the kind of patient and disciplined stock selection that has always been a hallmark here at Royce?

Market Perspective

Why We're Optimistic About Japanese Micro-Caps

by Jim Harvey and Dilip Badlani

We think Japan's potential structural reforms will benefit the types of smaller Japanese companies that we typically invest in.

Global/International

Royce Dividend Value Fund Celebrates 10 Years of History

by Chuck Royce and Jay Kaplan

We believe that dividend-paying small-caps and mid-caps offer investors many advantages, especially at this point in the economic and stock-market cycle.

Fund Focus

Combining the Elements of a Value and Growth Approach

by Chip Skinner

A more singular product in our lineup of offerings, Royce Smaller-Companies Growth Fund is a growth-oriented portfolio with a value overlay.

Fund Focus

Will a Rise in Rates See a More Lasting Shift to Quality?

by Charlie Dreifus

The Federal Reserve meeting on March 19 had an effect on the market, which included a move to more quality-like attributes in stocks.

Market Perspective

Why Should Investors Look at European Small-Caps?

by David Nadel

Our exposure to European small-caps has always been a result of careful stock selection, not macro factors.

Global/International

Understanding Market Cycles and Fund Performance

by Gunjan Banati

Director of Risk Management Gunjan Banati explains the advantages of measuring performance over full market cycles.

Market Perspective

Chip Skinner on 1Q14: Looking at Current Long-Term Growth Plays

by Chip Skinner

While the pace of returns cooled to kick off 2014, we think the bull market still has legs.

Market Perspective

Chuck Royce on 1Q14: Despite Minor Pullback, Market Still Shows Strength

by Chuck Royce

It's been nearly two-and-a-half years since the market has seen a significantly bearish period.

Market Perspective

Gain International Exposure with Small-Caps

by David Nadel

Investors should consider adding international small-caps to their portfolio to gain exposure to new businesses and to take advantage of compelling valuations and depressed profit margins.

Global/International

A Focus on Dividends and Cash Flow

by Charlie Dreifus

We view the practice of consistently paying dividends as a sensible act of corporate governance.

Investment Approach

Getting Rightsized with Small-Caps

by Gunjan Banati

How are we applying our small-cap expertise to the micro-cap and smid-cap segments?

Investment Approach

Strengthening Economy Should Benefit High-Quality Small-Caps

by Chuck Royce

As the economy keeps expanding, we think investors will return their focus to fundamentals, helping companies with the high-quality characteristics we have always coveted to once again assume market leadership.

Market Perspective

What Columbus Missed: Royce Rediscovers India

by David Nadel

While most investors are running away, our investment view on India is cautiously optimistic.

Global/International

The U.S. an Oasis in a Global Sea of Problems

by Charlie Dreifus

Portfolio Manager and Principal Charlie Dreifus believes the U.S. economy is in good shape going forward despite the market's slow start in 2014.

Market Perspective

Finding Value in More Economically Sensitive Sectors

by Lauren Romeo

Portfolio Manager Lauren Romeo likes how Royce 100 Fund is positioned for the long-term.

Fund Focus

The State of International Small-Cap

by Francis Gannon

How much of a contribution have overseas revenues made to last year's dynamic domestic small-cap rally, and where do we stand on international investing?

Market Perspective

Small-Cap Opportunities in a Bull Market

by Chuck Royce

Chuck Royce looks at 2013's small-cap performance and how he's finding ideas in an expensive market.

Market Perspective

Royce Special Equity Multi-Cap's Notable Three-Year Record

by Charlie Dreifus

Why, after 40 years of investing almost exclusively in smaller companies, did we turn our sights toward the large-cap space?

Fund Focus

4Q13: Abnormally High Returns Reinforce Our Bias

by Chuck Royce

In his 40 plus years in the industry, Chuck Royce has seen many bull and bear markets come and go. What does he have to say about 2013’s small-cap rally?

Market Perspective

How Charlie Dreifus Uncovers Absolute Value

by Charlie Dreifus

What type of businesses does Portfolio Manager and Principal Charlie Dreifus seek for his portfolios, and what metrics does he use to determine whether or not they will provide a desired rate of absolute return?

Investment Approach

Royce Total Return Fund: A Focus on Dividend-Paying Small-Caps

by Chuck Royce and Jay Kaplan

To us, the practice of consistently paying or growing a dividend is not only a mark of quality but a shareholder-friendly capital allocation strategy.

Fund Focus

Some Small-Caps Are More Global Than Others

by Francis Gannon

Small-caps vary widely in the percentage of revenue they generate from outside the U.S. Francis Gannon looks at why that may become more important in the months ahead.

Market Perspective

GameStop and Our Long-Term, Contrarian Investment Approach

by Jay Kaplan

What is it about GameStop that has made it attractive to contrarian investors like us?

Investment Approach

Royce Select Fund I: Valuation and Emerging Quality

by Lauren Romeo

To mark Select I’s 15 years of history—which it celebrated November 18, 2013—we want to provide a closer look at the Fund’s investment approach, portfolio process, management, and performance.

Fund Focus

Quality, Low-Leverage Companies Should Benefit from Tapering

by Francis Gannon

To us, quality companies are those that are conservatively capitalized.

Market Perspective

Understanding the Benefits of Rolling Returns

by Gunjan Banati

What are the advantages of using rolling returns when measuring performance?

Market Perspective

Can Small-Cap Year-to-Date Outperformance Continue?

In an environment of slow economic growth accompanied by robust stock market returns, what’s next for small-cap stocks?

Market Perspective

Despite Uncertainty, the Market Still Looks Strong

by Charlie Dreifus

Do a strong market, improving consumer confidence, and favorable economic conditions indicate that the U.S. is beginning a more typical recovery?

Market Perspective

A Theme-Based Approach to Small-Cap Investing

by Bill Hench

Portfolio Manager Bill Hench discusses the strategy used in building Royce Opportunity and Opportunity Select Funds' performance records.

Investment Approach

Chuck Royce on 3Q13: Quality Small-Caps Can Continue to Bear Fruit

by Chuck Royce

While corrections are to be expected, Co-CIO Chuck Royce anticipates positive results for small-caps and active managers with a disciplined, long-term approach.

Market Perspective

Are Investors Paying More Attention to Quality Small-Caps?

by Francis Gannon

Historically, prudently capitalized, well-managed companies have been solid investments, and we believe they will be once again.

Market Perspective

Exploring Compelling Investment Themes in an Atypical Market

by Chip Skinner

Portfolio Manager and Principal Chip Skinner discusses areas of the market that he believes are providing attractive opportunities and companies that exemplify the themes he’s been developing.

Investment Approach

Using Capture Ratios to Measure Market Cycles

by Gunjan Banati

Capture ratios provide a revealing way to measure portfolio performance during full market cycles.

Investment Approach

Out-of-Sync Periods: A Natural Byproduct of Active Management

by Chris Clark

While not always pleasant, we accept that out-of-sync periods are a natural byproduct of our active management approach.

Investment Approach

Finding Investment Ideas in a Rising Market

by Jay Kaplan

Despite company margins that are generally still solid and profitability that is still respectable, Jay Kaplan believes that low revenue growth continues to be a major obstacle.

Investment Approach

An Inside Look at How We Evaluate Stocks

by Chris Flynn

What characteristics do we look for in our long-term investments?

Investment Approach

Risk-Oriented Approach to Micro-Caps

by Jen Taylor

Portfolio Manager Jenifer Taylor details our approach to the micro-cap asset class.

Investment Approach

Chuck Royce on the Opportunities and Elements of Micro-Cap Investing

by Chuck Royce

Co-CIO Chuck Royce talks about micro-caps as a distinct asset class and our approach to this large and evergreen universe.

Investment Approach

Royce Heritage Fund: A Broader Definition of Quality

by Steven McBoyle

At Royce, we pride ourselves on being a quality-focused investment manager. But what do we mean by “quality,” why is it so important to us, and how does it inform what we do?

Fund Focus

Light at the End of the Tunnel: Patience and Discipline Matter Most

by Chuck Royce

We suspect an environment in which the Fed is not as intimately involved in the economy will be a healthy one for stocks.

Market Perspective

What Does an Improving Economy Mean for Stocks and Bonds?

by Charlie Dreifus

As investors start to look towards the end of the summer, Portfolio Manager and Principal Charlie Dreifus believes much is ahead for September.

Market Perspective

Seeking Out Global and International Opportunities

by David Nadel

International small-cap is an asset class rapidly growing in acceptance—one that we believe investors should consider when allocating assets.

Global/International

Understanding Quality: The Crux of Long-Term Investing

by Francis Gannon

The search for quality companies begins with an analysis of a company’s historical returns over full business cycles.

Market Perspective

Beyond the T.I.N.A. Principle: Why Quality Stocks Remain Attractive

by Charlie Dreifus

With the U.S. economy improving, Charlie Dreifus explains why he thinks U.S. equities remain attractive.

Market Perspective

Volatility, Correlation, and Cyclical Businesses

by Francis Gannon

Does a rise in volatility signal a positive change in the overall market?

Market Perspective

Humility, Discipline, and Patience Drive Our Approach

by Chris Clark

The gravitational pull of the market’s increasingly short-term orientation can be challenging, but we believe having the courage to stay the course will ultimately win out.

Investment Approach

We Think Dividend Growers Are Better Businesses

by Francis Gannon

The dividend story is one that can be exciting within the small-cap space, but it’s not about investing in companies that have the highest dividend yields.

Market Perspective

Francis Gannon Makes a Case for Small-Cap Equities

by Francis Gannon

Our goal is to find high quality small-cap companies that are selling at a discount to what we believe their intrinsic net value might be.

Investment Approach

Why a Normalized Yield Environment Marks the Return of Capitalism

by Francis Gannon

Are stocks moving from a reliance on Fed policies to fundamentals?

Market Perspective

Royce on 2Q13: Bullish on Quality and Active Management

by Chuck Royce

Will higher-quality companies lead the market once Fed policy cools?

Market Perspective

Searching for Super Small-Cap Companies Through the Macro Noise

by Chris Clark

Rather than predict the outcome of the macro challenges at hand, we look for companies that have the resilience to survive in any environment.

Market Perspective

The Evolution of International Small-Cap Investing at Royce

by David Nadel

From our perspective, international small-caps offer a large universe of companies that we believe can benefit from a disciplined active management.

Global/International

Are Actively Managed Funds About to Gain an Edge?

by Francis Gannon

Did May’s sector shift signal that active managers will begin to assert themselves over their passive counterparts?

Market Perspective

Adding Value Through Qualitative Analysis

by John Protos

In an asset class where research coverage is limited, we go to great lengths to get a full picture of our investments.

Investment Approach

Charlie Dreifus Looks at the Fed, Interest Rates, and Money Velocity

by Charlie Dreifus

What happens to stock prices if interest rates rise?

Market Perspective

Are Investors Missing the Bull Market?

by Chris Clark

While many investors feared that equities would suffer the same slow-growth fate as the global economy during the past 10 years, few saw that the overall performance of the market for the 10-year period as of March 31, 2013 was actually quite good.

Market Perspective

Charlie Dreifus on the Current Market, Managing Risk, and T.I.N.A.

by Charlie Dreifus

Portfolio Manager Charlie Dreifus offers his thoughts on topics such as the importance of managing risk in the current market environment and how the T.I.N.A. Principle (There Is No Alternative) might potentially push equities higher.

Market Perspective

Steven McBoyle Makes a Case for Mid-Caps

by Steven McBoyle

Mid-cap investing is a logical extension of Royce’s 40-year experience with the small-cap asset class. Portfolio Manager Steven McBoyle talks about our approach to mid-caps, as well as his thoughts on current market opportunities and portfolio positioning.

Investment Approach

Charlie Dreifus on Picking Large-Cap and Small-Cap Stocks

by Charlie Dreifus

Charlie Dreifus talks about his classic value and accounting-oriented investment approach and the differences in finding opportunity between small- and large-cap businesses.

Investment Approach

Dividends, Investing Across Market Caps, and Lessons from the Bear

by Charlie Dreifus

“Dividend policy is likely more important now than it ever has been in the entire history of U.S. equities.”

Market Perspective

Back to Basics

by Francis Gannon

As the ongoing effects of anemic economic growth continue to play out, one has to wonder when investors will resume viewing stocks as businesses.

Market Perspective
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