article 09-13-2016

Jay Kaplan Joins Nightly Business Report to Talk Small-Caps

Portfolio Manager Jay Kaplan joins Nightly Business Report hosts Tyler Mathisen and Sue Herera to discuss his small-cap stock picks and market volatility. 

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"The small-cap market, since its bottom in February, is up 30%, really about straight up until today. That's off of the bear market from the middle of '15 through February of '16. Twenty five down, thirty up," said Portfolio Manager Jay Kaplan on Nightly Business Report on PBS.

Jay joined Nightly Business Report on September 9, 2016 and explained why he sees more volatility ahead for small-caps with hosts Tyler Mathisen and Sue Herera, saying "Corrections are normal when you have that kind of action."

Jay also laid out his three stock picks which "could help ride out stock market volatility."

His picks include Moelis & Co, an independent investment bank that is currently taking market share: "Their genesis is in restructuring. They have a very vibrant restructuring practice and as we've gone through a little bit of volatility and some agita in the junk bond market and in the energy patch, that business is starting to pick up steam."

He also highlighted PC Connection (which recently changed its name to 'Connection'), a technology distribution business that helps small and medium-sized municipalities and businesses acquire technology, and Camden National Corporation, a bank located in Maine which acquired its biggest competitor in 2015.

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 persons speaking as of September 9, 2016 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.

As of 6/30/16, Steven Madden was 0.8 % of Royce Small-Cap Value Fund's assets, 0.4% of Royce Total Return Fund's assets, 0.4% of Royce Dividend Value Fund's assets, 0.1% of Royce Pennsylvania Mutual Fund's assets, and 0.7% of Royce Capital Fund – Small-Cap Portfolio's assets.

The Buckle was 2.5 % of Royce Small-Cap Value Fund's assets, 0.6% of Royce Total Return Fund's assets, 0.6% of Royce Dividend Value Fund's assets, 0.6% of Royce Pennsylvania Mutual Fund's assets, and 2.7% of Royce Capital Fund – Small-Cap Portfolio's assets.

G-III Apparel Group was 1.5 % of Royce Small-Cap Value Fund's assets, 0.0% of Royce Total Return Fund's assets, 0.0% of Royce Dividend Value Fund's assets, 0.4% of Royce Pennsylvania Mutual Fund's assets, and 1.9% of Royce Capital Fund – Small-Cap Portfolio's assets.

Moelis & Company Cl. A was 2.4 % of Royce Small-Cap Value Fund's assets, 0.5% of Royce Total Return Fund's assets, 0.5% of Royce Dividend Value Fund's assets, 0.3% of Royce Pennsylvania Mutual Fund's assets, and 2.2% of Royce Capital Fund – Small-Cap Portfolio's assets.

PC Connection was 3.0 % of Royce Small-Cap Value Fund's assets, 0.0% of Royce Total Return Fund's assets, 0.0% of Royce Dividend Value Fund's assets, 0.5% of Royce Pennsylvania Mutual Fund's assets, and 2.9% of Royce Capital Fund – Small-Cap Portfolio's assets.

Camden National was 1.7 % of Royce Small-Cap Value Fund's assets, 0.5% of Royce Total Return Fund's assets, 0.6% of Royce Dividend Value Fund's assets, 0.3% of Royce Pennsylvania Mutual Fund's assets, and 1.8% of Royce Capital Fund – Small-Cap Portfolio's assets.

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.

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. (Please see "Primary Risks for Fund Investors" in the prospectus.)

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