Bill Hench on MoneyLife: Finding Opportunities in Small-Caps
article 02-03-2017

Bill Hench on MoneyLife: Finding Opportunities in Small-Caps

Portfolio Manager Bill Hench joins the MoneyLife with Chuck Jaffe podcast and explains where he is currently finding opportunities in the small-cap market.


Portfolio Manager Bill Hench joined the financial radio talk show MoneyLife with Chuck Jaffe on February 1, 2017 discussed the small-cap market and where he is finding opportunities.

Bill discusses Opportunity Fund's methodology: "The philosophy is very simple and is that in the small and micro-cap part of the market, there are risks like liquidity, financial risk, management risk that just aren't the same as the bigger and more established companies and therefore if you're going to invest in this part of the market you have to make sure you get paid for it."

On the current small-cap market, Bill said, "At any given moment, you're going to have parts of the markets that are really rich and others that being neglected and it's no different now. Since the election, a lot of the infrastructure stocks have done very well. So we've trimmed back there, but the day after the election a lot of the Health Care stocks, specifically things like hospitals and other facilities really got tagged and all of a sudden they became very cheap, if you will, on the assumption that changes in the Affordable Care Act would increase their debt and do some other things to their earnings. So there's always different parts of the market that look rich and different parts that look opportunistic, especially if you're a value player."

Bill also discusses the semiconductor industry, an area he find attractive, saying, "One of the things we love is technology, which is a little different than a lot of other value funds but we think tech, and specifically things like semiconductors, semiconductor capital equipment, contract manufacturers all have a very good future."

Listen to the entire MoneyLife with Chuck Jaffe segment here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of February 1, 2017 and may differ from those of other Royce investment professionals, or the firm as a whole.

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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