Chuck Royce on WealthTrack: Where Are Today’s Small-Cap Opportunities?
article 02-26-2018

ChuckRoyce on WealthTrack: Where Are Today's Small-Cap Opportunities?

In an exclusive interview with Consuelo Mack WealthTrack, Chuck Royce talks about the current challenges facing active management, why he thinks value investing will be rewarded, and where he is finding opportunities in the small-cap universe.

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On February 22, 2018 Chuck Royce was a guest on Consuelo Mack WealthTrack.

In the interview, Chuck discussed a wide range of topics, including why he sees risks in the sizable percentage of companies in the Russell 2000 that are losing money. He was quick to point out, however, that the size of the overall small-cap asset class continues to offer what he thinks are attractively valued companies with strong financial characteristics.

He and Consuelo also covered the importance of looking at full market cycle results when evaluating performance.

Watch the interview here

The discussion continued with an exchange about why not losing money is so critical to investment success, the importance of earnings, and why the small-cap asset class offers such great potential for active managers to outperform the index.

After discussing six companies that he likes, they concluded with Chuck detailing why he’s bullish on the prospects for international small-cap stocks.

Chuck Royce has 55 years of investment industry experience. Chuck manages Royce Pennsylvania Mutual Fund (with Jay Kaplan and Lauren Romeo)Royce Premier Fund (with Lauren Romeo and Steven McBoyle), Royce Total Return Fund and Dividend Value Fund (each with Jay Kaplan), and Royce Global Financial Services Fund (with Chris Flynn). He also manages Royce Value TrustMicro-Cap Trust, and Global Value Trust, the firm's three closed-end fund offerings.

Important Disclosure Information

Percentage of Fund Holdings as of 12/31/17 (%)

  Ares 
Management, L.P.
Carlyle 
Group L.P.
Clarkson  Kirby 
Corporation
KKR & Co. 
L.P.
Lincoln 
Electric 
Holdings
Pennslyvania Mutual
0.30
N/A
0.46
0.26
N/A
0.57
Small/Mid-Cap Premier
N/A
N/A
N/A
2.06
N/A
N/A
Premier
2.04
N/A
1.08
2.65
N/A
2.98
Smaller-Companies Growth
N/A
N/A
1.55
N/A
N/A
N/A
Micro-Cap
N/A
N/A
0.77
N/A
N/A
N/A
Low-Priced Stock
0.82
N/A
0.80
N/A
N/A
N/A
Total Return
0.33
N/A
1.09
N/A
0.50
0.54
Dividend Value
N/A
1.53
1.28
N/A
2.38
0.66
Global Financial Services
1.76
1.71
1.80
N/A
0.90
N/A
Value Trust
0.50
N/A
0.76
0.65
0.03
0.38
Micro-Cap Trust
N/A
N/A
1.04
N/A
N/A
N/A
Capital Micro-Cap
N/A
N/A
0.76
N/A
N/A
N/A
Global Value Trust
N/A
N/A
N/A
N/A
N/A
N/A
International Premier
N/A
N/A
1.79
N/A
N/A
N/A

There can be no assurance that any of the securities mentioned in the video will be included in these portfolios in the future. References to specific securities in this video are not intended as recommendations and should not be relied upon as the basis for anyone to buy, sell, or hold any security.

Chuck Royce is Chairman and  Portfolio Manager of Royce & Associates, LP, investment adviser to The Royce Funds. Mr. Royce's thoughts in this interview concerning the stock market reflect his opinions and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

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.)

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