CNBC PowerLunch: Portfolio Manager Bill Hench on Small-Cap Tech Opportunities
article 06-29-2017

CNBC PowerLunch: Portfolio Manager Bill Hench on Small-Cap Tech Opportunities

Portfolio Manager Bill Hench joins CNBC PowerLunch to discuss where he’s been finding opportunities in small-cap technology companies, driven by the sector’s global buildout.

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On June 26, 2017, Bill Hench joined CNBC’s PowerLunch to discuss opportunities in small-cap tech stocks.

Bill describes why he's currently looking at these, including semi-conductors and capital equipment. "We're value managers so we buy cheap stocks … because something may have caused them to be cheap. We look for things that are very cheap that we think can fix themselves over time. Traditionally we've used a lot of the cyclical industries like technology."

He also discusses how the "FANG" (Facebook, Amazon, Netflix, & Google) group is affecting small-cap companies he's interested in, "They provide a lot of the ammunition for our companies to have great earnings. So if you look at the income statements of those big stocks, Facebook, Google, Amazon…..tremendous amount of CAPEX."

Additionally, Bill highlights Fabrinet, an electronic fabric manufacturer and Unisys, a provider of IT services and technology.

Watch the interview at CNBC.com.

 

Average Annual Total Returns as of 3/31/17 (%)
  QTR YTD 1YR 3YR 5YR 10YR 20YR SINCE
INCEPT.
DATE
Opportunity 5.21 5.21 33.85 4.31 11.98 7.10 12.41 12.40 11/19/96
Russell 2000 2.47 2.47 26.22 7.22 12.35 7.12 8.67 8.47 N/A
Annual Operating Expenses: 1.19%

Important Performance and Expense Information


All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 30 days of purchase may be subject to a 1% redemption fee, payable to the Fund which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.roycefunds.com. Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund's most current prospectus and include management fees and other expenses.

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. There can be no assurance that a company that currently pays a dividend will continue to do so in the future.

As of 3/31/17, Fabrinet was 0.0% of Royce Opportunity Fund's assets, and 0.0% of Royce Micro-Cap Opportunity Fund's assets.

As of 3/31/17, Unisys Corporation was 1.2% of Royce Opportunity Fund's assets, and 0.0% of Royce Micro-Cap Opportunity Fund's assets.

As of 3/31/17, Brooks Automation was 1.3% of Royce Opportunity Fund's assets, and 0.0% of Royce Micro-Cap Opportunity Fund's assets.

As of 3/31/17, KEMET Corporation was 1.2% of Royce Opportunity Fund's assets, and 2.4% of Royce Micro-Cap Opportunity Fund's assets.

As of 3/31/17, Kulicke & Soffa Industries was 1.2% of Royce Opportunity Fund's assets, and 0.0% of Royce Micro-Cap Opportunity Fund'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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