David Nadel on MoneyLife with Chuck Jaffe
article 10-19-2017

David Nadel on MoneyLife with Chuck Jaffe

David Nadel discusses why now might be the right time to look at international small-caps on MoneyLife with Chuck Jaffe.

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Portfolio Manager David Nadel joined financial radio talk show MoneyLife with Chuck Jaffe on October 2, 2017, and discussed why it is a good time to look at international small-caps.

David provided an introduction to this asset class, discussing the key characteristics, including volatility, performance, and lower correlation.

He highlighted the potential for diversification, saying, "I think people are trying to get diversified away from U.S. large-caps at this point because the S&P 500 of course has doubled in the last 6 years…The multiple in the S&P has become very extended and you look at international stocks, particularly small-cap stocks, and you’re looking at much more attractive valuation, so that’s timely, you’re looking at much richer dividend yields."

David also details why choosing an active manager within the international small-cap space could be beneficial: "There are also 250-300 really fantastic companies and we own 50 of those in our strategy. It does take a lot of work to ferret out the best long-term investment opportunities and create a strategy that outperforms with less volatility."

Continuing, David touches how movements of the dollar and potential implications from actions of the Fed could impact the asset class, saying, "We want to be exposed to sectors and to businesses that have proven themselves to execute extremely well through any sort of rate changing environment or any sort of a macro-economic environment. We’re trying to take a more or less “all weather” approach to the macro-economic climate."

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.

The S&P 500 is an index of U.S. large-cap stocks, selected by Standard & Poor’s based on market size, liquidity, and industry grouping, among other factors. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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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