Grant's Conference: Big Opportunities in Small-Cap
article 03-28-2017

Grant's Conference: Big Opportunities in Small-Cap

Chuck Royce and Steve Lipper joined Jim Grant at Grant's Conference to discuss overlooked innovation in small-cap.


Chuck Royce and Steve Lipper joined host Jim Grant at Grant's Conference on March 15 to discuss uncovering innovation and opportunities in small-cap stocks.

Also speaking at the conference with Chuck and Steve were Jack Bogle and Peter R. Fisher.

They discussed a variety of topics covering the future of small-cap investing.

On the small-cap market, Chuck said: "We see 2016 as beginning a new period of small-cap leadership. In contrast to the prior period, we think we're just beginning a multi-year run of leadership for value stocks and active management."

Russell 2000 Value vs Growth Annualized Trailing 10-Year Relative Return as of 12/31/16


1The 10-year avearge annual total return through 12/31/16 was 5.78% for the Russell 2000 Value and 7.76% for the Russell 2000 Growth. -1.50% represents the difference.
Standard Deviation is a measure that quantifies the amount of dispersion in a data set. Roughly 68% of the data values are within one standard deviation of the mean.

Steve discussed innovation in the asset class, saying it "Comes in multiple forms in small-cap companies. Sometimes the business model is the innovation, and investors often undervalue the long-term difference a superior business model can create."


For more information on Grant's and the investment conference, click here.

Important Disclosure Information

The thoughts and opinions expressed in the article are solely those of the persons speaking as of March 15, 2017 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.

There can be no assurances with respect to future small-cap market performance. The performance data and trends outlined in this presentation are presented for illustrative purposes only. All performance information is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements. Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Frank Russell Company is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. All investments involve risk, including the loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small-cap stocks involve greater risks and volatility than large-cap stocks.

For the Morningstar Small Blend Category: © 2016 Morningstar. All Rights Reserved. The information regarding the category in this piece is: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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.)



Sign Up