What Does a Post-Trump Market Mean for Investors?

    by Charlie Dreifus

    Portfolio Manager Charlie Dreifus on the market's enthusiastic response to Trump's election and what to watch for going forward. ... Continue reading

    Market Perspective

    What Should Asset Allocators Know About Value-Led Markets?

    by Steve Lipper

    Are asset allocators missing a connection in the small-cap market?

    Market Perspective

    Why Investors Should Care About Corporate Governance

    by Charlie Dreifus

    What are the four key corporate governance issues investors should know about?

    Market Perspective

    What Small-Cap Investors Need to Know About the Election

    by Francis Gannon

    Co-CIO Francis Gannon outlines what's important for small-cap investors to know about the election.

    Market Perspective

    Investors Should Focus on GDP Growth, Not Interest Rates

    by Charlie Dreifus

    Why should investors pay close attention to GDP growth rather than worry about interest rates?

    Market Perspective

    The Small-Cap Bull Market Has Legs

    by Chuck Royce

    Why does Chuck Royce believe value will continue to outperform?

    Market Perspective

    Is The Fed Out of Options?

    by Charlie Dreifus

    Portfolio Manager Charlie Dreifus explains the Fed's conundrum, why there's too much hesitation in the market and economy, and the challenges to subsequent growth.

    Market Perspective

    The Strong Small-Cap Rally Will Keep Rolling

    Four small-cap specialists discuss the small-cap rally and their outlook for the asset class.

    Market Perspective

    Small-Cap Strength Broadens in 3Q16

    by Chuck Royce and Francis Gannon

    Chairman Chuck Royce and Co-CIO Francis Gannon discuss broadening small-cap strength, why value should continue to lead in the current cycle, and why many Industrials still look reasonably valued.

    Market Perspective

    The Stealth Bull Market for Small-Caps Rolls On

    3Q16 was a strong quarter for small-cap stocks. Despite potential near-term volatility, Co-CIO Francis Gannon thinks the small-cap rally has room to run.

    Market Perspective

    What Is The Connection Between Value-Led Small-Cap Markets and Success for Active Management?

    by Steve Lipper

    Our recent research into markets led by small-cap value and success for active management revealed a striking connection.

    Market Perspective

    How Are Leading Companies Adapting to a Low Return World?

    Why is Portfolio Manager Steven McBoyle bullish on small-caps companies with the capacity to reinvest capital?

    Market Perspective

    3 Investment Ideas from Chuck Royce

    by Chuck Royce and Francis Gannon

    Why is Chuck Royce bullish on industrial automation, alternative asset managers, and select investment banks?

    Market Perspective

    A Bear, A Brexit, and A Welcome Start to 2016

    We were happy to greet 2016 with a spirited "Hello" because we think that leadership for value—now in place for more than a year—has ample room to run.

    Market Perspective

    Why Is Small-Cap Value so Attractive Now?

    by Francis Gannon

    Even in a post-Brexit world, we expect small-cap value to continue outperforming.

    Market Perspective

    Why Are the Markets Prone to Black Swans?

    by Charlie Dreifus

    Does the combination of slow growth and high valuations, make the markets more prone to black swan events?

    Market Perspective

    Equity Market Highs, Bond Yields at Record Lows. Who's Right?

    by Francis Gannon

    Co-CIO Francis Gannon examines the disconnect between the equity and bond markets.

    Market Perspective

    Small-Cap Value Leads 2Q16 Despite Brexit Interruption

    A once mildly bullish quarter turned wildly volatile in the wake of Brexit. The small-cap indexes then rebounded, recouping their losses to finish the quarter with modest gains. Despite the volatility, we saw certain longer-term trends continue to progress throughout the quarter.

    Market Perspective

    Small-Cap Value Stays Strong

    by Chuck Royce and Francis Gannon

    Chuck Royce and Francis Gannon look at value's leadership in the current small-cap cycle, the impact of Brexit, and where they are currently finding opportunities.

    Market Perspective

    How Will the Brexit Affect Small-Caps?

    by Chris Clark and Francis Gannon

    Royce's Co-Chief Investment Officers Chris Clark and Francis Gannon on the surprising Brexit and the importance of prudence and perspective in the days ahead.

    Market Perspective

    Investors: Mind the Gap in GAAP

    by Charlie Dreifus and Steven McBoyle

    The gap between GAAP and non-GAAP accounting practices may prove problematic to investors.

    Market Perspective

    Finding Deep Value in the Small-Cap Market

    by Bill Hench

    Where Portfolio Manager Bill Hench is finding value in today's small-cap market.

    Market Perspective

    Optimistic About the Small-Cap Market

    by Bill Hench

    Why is Portfolio Manager Bill Hench optimistic about the small-cap market?

    Market Perspective

    Why We Think Value's Outperformance Is Likely to Continue

    by Francis Gannon

    Why does the small-cap leadership shift from growth to value have a long way to go?

    Market Perspective

    Is M&A in Small-Caps Accelerating?

    by Bill Hench

    Why is Portfolio Manager Bill Hench closely watching small-cap M&A activity?

    Market Perspective

    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?

    Market Perspective

    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

    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

    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.

    Market Perspective

    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

    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

    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

    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.

    Market Perspective

    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

    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

    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

    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.

    Market Perspective

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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?

    Market Perspective

    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

    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

    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

    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

    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

    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.

    Market Perspective

    Current Opportunities in Consumer Discretionary

    by Charlie Dreifus and Dave Gruber

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

    Market Perspective

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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
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    Fund Manager Commentaries

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