Jay Kaplan on Asset.tv's Small-Cap Investing Masterclass
article 05-04-2016

Jay Kaplan on Asset.tv's Small-Cap Investing Masterclass

Portfolio Manager Jay Kaplan shares why he thinks now is the time to invest in small-caps, particularly small-cap value.   

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On April 15, 2016, Portfolio Manager Jay Kaplan was one of four panelists on Asset.tv's "Small Cap Investing" Masterclass.

"I think we're at a point where quality businesses are being rewarded, companies that make money are being rewarded which has not been the case," said Jay.

"I think managers who have a portfolio of really good businesses that can grow their earnings compound free cash flow over time can do very well. And I think small-cap stocks, particularly value stocks are a great place to be for that."

Jay was joined by three other small-cap portfolio managers who discussed:

  • the prospects for small-cap stocks
  • small-cap performance and maintaining a long-term focus
  • what is driving the asset class in current market conditions
  • why active management and volatility matters for small-caps
  • how the election cycle plays into the small-cap space
  • what he's been seeing in the energy space
  • areas of the market he is emphasizing and avoiding

"So the invisible hand has come back to the market, the laws of economics have come back to the market.  First quarter, same idea, is it long term sustainable?  Nobody really knows, but it feels like there’s some rationality that’s come back," Jay added. 

It feels like there is, "a little more rationality, a little more attention to risk, a little less speculation, a little more focus on fundamentals."

Jay Kaplan is the portfolio manager of Royce Small-Cap Value Fund, Royce Total Return Fund, Royce Dividend Value Fund, Royce Pennsylvania Mutual Fund, and Royce Capital Fund – Small-Cap Portfolio

Important Disclosure Information

The thoughts and opinions expressed in the video 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. Investments in securities of small-cap companies may involve considerably more risk than investments in securities of larger-cap companies. (See "Primary Risks for Fund Investors" in the prospectus.)

Investments in securities of small-cap companies may involve considerably more risk than investments in securities of larger-cap companies. (Please see “Primary Risks for Fund Investors” in the prospectus.)

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell© is a trademark of Russell Investment Group. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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