Jay Kaplan in MarketWatch: Bullish on Small-Cap Retail Stocks
article 10-10-2016

Jay Kaplan in MarketWatch: Bullish on Small-Cap Retail Stocks

Portfolio Manager Jay Kaplan discusses his small-cap retail picks with MarketWatch.

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Portfolio Manager Jay Kaplan shares his thoughts on the small-cap retail stocks that he currently likes with MarketWatch. The article "5 retail stocks to buy before the holiday-shopping bonanza" by Michael Brush says that "now might be a good time to step up and selectively buy some retailers, ahead of the holiday season."

On Genesco and its footwear store, Journeys: "It's not the first time that Journeys has had this kind of issue. Every few years this happens," says Jay Kaplan, a portfolio manager at Royce & Associates who manages Royce Total Return Fund with Lead Portfolio Manager Chuck Royce. "They are selling to teens and young adults, and the fashion can change on a dime."

Regarding clothing retailer American Eagle Outfitters, Jay said, "It looks like there is a denim cycle coming again, and denim is really important to them. They are not having the discounting they had a year ago, and that tells you the costumer likes their product."

Jay Kaplan is the portfolio manager of Royce Small-Cap Value Fund, Royce Total Return Fund (with Chuck Royce as Lead Portfolio Manager), Royce Dividend Value Fund (with Chuck Royce as Lead Portfolio Manager), Royce Pennsylvania Mutual Fund (with Chuck Royce as Lead Portfolio Manager), and Royce Capital Fund – Small-Cap Portfolio.

Read the article here.

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.

As of 9/30/16, Genesco 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, 0.4% of Royce Pennsylvania Mutual Fund's assets, and 2.1% of Royce Capital Fund – Small-Cap Portfolio's assets.

As of 9/30/16, American Eagle Outfitters was 2.9% 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, 0.4% of Royce Pennsylvania Mutual Fund's assets, and 3.0% 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.)

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