Bill Hench on MoneyLife with Chuck Jaffe
article 08-01-2017

Bill Hench on MoneyLife with Chuck Jaffe

Portfolio Manager Bill Hench discusses his deep value approach and where he is finding opportunities in the current small-cap market on MoneyLife with Chuck Jaffe.

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Portfolio Manager Bill Hench joined financial radio talk show MoneyLife with Chuck Jaffe on July 26, 2017, and discussed where he is finding opportunities for his portfolios in the current small-cap market.

Bill discussed how smaller companies have been involved in larger trends, like the current global tech buildout: "If you look at the technology sector, it's been very good for that small group of names in the big and mega-cap land, but because of the way those companies operate and what they spend money on, it’s had a great result for small-cap companies that make devices for semi-conductors like semi-conductor equipment, connectors, all the little parts that go into the servers and the products that those big companies are buying. So it’s had a very good effect there."

He also highlighted the housing industry as a current area of interest for his portfolios, "Housing would be a great group. The stocks have terrific statistics, meaning they're not trading at big multiple of book. They’re earning money and their margins should be able to show improvement. With time, there has been under-production, if you will, of homes and land, which is restricting current production. So you’ve got valuation, and you’ve got a good story going forward as employment continues to be well and as existing home sales continue to hold their value."

Bill also details other areas where he's been finding opportunities in an environment marked by high valuations, "With the type of fund that we run or with the type of process that we use, the market is big enough that there’s always something that isn’t working… So, we've been doing a fair amount of looking in energy, whether it is in the service side or the E&P side, and also amongst the consumer companies.”

To close out the piece, Bill then gave his thoughts on audience-chosen stocks in the "Hold It or Fold It" segment.

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 July 26, 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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