article 09-27-2016

Jay Kaplan Talks Small-Caps on MoneyLife with Chuck Jaffe

Portfolio Manager Jay Kaplan discusses his investment approach and a few stocks in which he is currently interested on the MoneyLife with Chuck Jaffe financial talk show. 

TELL US
WHAT YOU
THINK

On September 21, 2016, Portfolio Manager Jay Kaplan joined the financial radio talk show MoneyLife with Chuck Jaffe and shared his investment approach and stock picks with host Chuck Jaffe.

On his investment approach Jay said, "There are three key points to what we do. Number one, we're looking for companies with strong balance sheets. Number two, we're looking for really good companies and we try to measure that by the returns they get on their capital or the return that they get on their assets and thirdly we're trying to buy them at discounts, buy them at the right price. We're really about contrarian value investing and we're trying to think like business owners."

Jay also explained the value picture for small-caps: "Let's rewind to the summer of 2015 and if you look at the small cap's market performance from the summer of 2015 up to about the first six weeks of 2016, you basically had a 25% quick drop in the market. So in the fall and early winter there were a lot of opportunities. Now, from the middle of February up through early September you had a 30% up in the small cap market so if you didn't get frightened out, and a lot of people get frightened out by the down blips, you had a very nice upswing."

Jay added, "At The Royce Funds we have a very deep knowledge of small cap companies. As a firm, we've been at this for more than 40 years. The group here is a very experienced group so we can cover a lot of ground, we know a lot of stocks, and we know a lot of management teams."

He discussed the companies that meet his standards, and his thoughts on audience-chosen stocks in the "Hold It or Fold It" segment.

Listen to the entire show here.

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 21, 2016 and may differ from those of other Royce investment professionals, or the firm as a whole.

As of 6/30/16, 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.

As of 6/30/16, Ascena Retail Group was 0.0% 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, 0.0% of Royce Pennsylvania Mutual Fund's assets, and 0.0% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 6/30/16, FitBit Cl. A was 0.7% 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, 0.1% of Royce Pennsylvania Mutual Fund's assets, and 0.7% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 6/30/16, Allied World Assurance Company Holdings was 0.3% of Royce Small-Cap Value Fund's assets, 0.2% of Royce Total Return Fund's assets, 0.4% of Royce Dividend Value Fund's assets, 0.04% of Royce Pennsylvania Mutual Fund's assets, and 0.7% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 6/30/16, Symerex Energy Company was 0.0% 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, 0.0% of Royce Pennsylvania Mutual Fund's assets, and 0.0% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 6/30/16, Monarch Casino and Resort was 0.0% 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, 0.0% of Royce Pennsylvania Mutual Fund's assets, and 0.0% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 6/30/16, American Woodwork Corporation was 0.0% 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, 0.0% of Royce Pennsylvania Mutual Fund's assets, and 0.0% 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.)

Share:

Subscribe:

Sign Up

Follow: