Bill Hench on Asset TV’s Small-Cap Masterclass
article 04-09-2018

Bill Hench on Asset TV’s Small-Cap Masterclass

Portfolio Manager Bill Hench joins Asset TV's Small-Cap Masterclass to discuss volatility, tax reform, and current opportunities in the asset class.


PM Bill Hench joined host Gillian Kemmerer along with two other small-cap managers on 3/16/18 to discuss some of the current and prospective drivers of small-cap stock performance.

Watch Bill's appearance here.

Bill discussed recent performance trends in the asset class, observing that valuations for many of his holdings look very attractive to him and offered as proof the relatively large number of recent acquisitions of portfolio holdings during 2018’s first quarter. He also remarked that there was not a specific catalyst he could see that would reverse growth’s leadership while, however, he went on to point out that style shifts have always been part of small-cap’s long-term performance dynamic.

Discussing the market’s recent increase in volatility, he said that it presents active managers with “great opportunities to take advantage of it… if you do your work.” He went on to say that global growth is strong, particularly with “innovation breaking out everywhere” in technology, with giants such as Amazon and Google having “a profound effect” on small-cap businesses that provide the semiconductors and other basic equipment powering these larger companies’ innovations.

Watch Bill's appearance here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of March 16, 2018 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.

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.)

The Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russel is a trademark of Russell Investment Group. The 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 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. 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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