article 08-15-2016

Francis Gannon Talks Small-Cap Investing on Fox Business

On "Countdown to the Closing Bell" Co-CIO Francis Gannon discusses the current market environment and his small-cap stock picks with Liz Claman.

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"It's a fascinating year within the small-cap space. We had a bear market in small caps that bottomed in February on February 11th and the market has rallied close to 30% from the bottom," said Co-Chief Investment Officer Francis Gannon on "Countdown to the Closing Bell" on Fox Business.

"This anemic economic environment – we hear day after day from companies that the economy is bumping along and they’re doing okay."

On August 11, 2016, Francis joined host Liz Claman and discussed the current market environment and his small-cap stock picks.

Remarking on the current small-cap environment, Francis said, "I think a couple of things have happened since the low. One is there have been some unfounded economic fears that haven’t taken place so the correction in the market was based on an economic growth scare that hasn’t happened."

Francis highlighted Moelis and Dorman Products, two companies that he describes as having "great opportunity going forward," and "a very high quality company," respectively.

Francis Gannon has 23 years of investment industry experience. He joined Royce in 2006.

Important Disclosure Information

The thoughts and opinions 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. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

Percentage of Fund Holdings as of 6/30/2016 (%)

  Moelis & Company
Cl. A
Dorman Products
Dividend Value 0.55 0.00
Heritage 0.00 0.75
Pennslyvania Mutual 0.31 0.75
Premier 0.00 2.07
Small-Cap Value 2.44 0.48
Total Return 0.49 0.00
Capital Fund - Small-Cap 2.22 0.11

There can be no assurance that any of the securities mentioned in the interview will be included in these portfolios in the future. References to specific securities in this interview 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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