Small-Cap Value: Portfolio Manager Jay Kaplan on The Street
article 03-09-2016

Small-Cap Value: Portfolio Manager Jay Kaplan on The Street

Jay Kaplan - The Street 1a

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On March 7, 2016, Portfolio Manager Jay Kaplan joined Gregg Greenberg of The Street for a discussion on four small-cap value stocks in Royce Small-Cap Value Fund.

Jay first talked about Matrix Service Company, which makes products for several industries, including oil and gas drillers. He likes the business because, "There's a big backlog of work that’s coming. The Street thinks it's just really and oil and gas drilling company so they trade it like an oil stock but it's much more than that, so we think when people see through that or if energy prices go up, you won't have a 10 multiple anymore."

Jay also explained why he likes three other stocks, including Moelis & Company, DSW, and MYR Group, saying "I know the Street's negative but for value investors like the Royce Small-Cap Value Fund, we like that."

Jay Kaplan has 27 years of investment industry experience, 14 of which at Royce.

Watch the video here. 

Important Disclosure Information

The thoughts expressed in this piece are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Royce Small-Cap Value Fund invests primarily in small-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. In addition, as of 12/31/15 the Fund invested a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than a more broadly diversified portfolio because a decline in the value of any of these stocks would cause the Fund's overall value to decline to a greater degree. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund may invest up to 25% of its net assets in foreign securities (measured at the time of investment), which may involve political, economic, currency, and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.)

Average Annual Total Returns (%) as of 12/31/15

  Matrix Service Moelis & Company Cl. A DSW Cl. A MYR Group
Total Return 0.0 0.0 0.63 0.0
Small-Cap Value 3.0 1.72 2.99 2.3
Dividend Value 0.0 0.0 0.65 0.0
Capital Fund - Small-Cap 2.81 1.18 2.95 1.58
Pennslvania Mutual 0.45 0.0 0.44 0.28

There can be no assurance that any of the securities mentioned in this piece will be included in these portfolios in the future. References to specific securities in this piece are not intended as recommendations and should not be relied upon as the basis for anyone to buy, sell, or hold any security.



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