David Nadel On ‘Capturing Opportunity In International Stocks’ Webcast
article 11-27-2018

David Nadel On ‘Capturing Opportunity In International Stocks’ Webcast

David Nadel participated in a Legg Mason webcast sponsored by Wealth Management to discuss the opportunities in international small-cap stocks.

TELL US
WHAT YOU
THINK

On November 13, David Nadel participated in Legg Mason’s webcast discussing opportunities in international stocks. The event was sponsored by Wealth Management and available only to financial professionals.

David spoke specifically to the opportunities available in international small-cap stocks, stating that it’s important to put aside preconceived notions about this asset class in part because more than 80% of international small-caps pay a dividend (Source: FactSet).

Listen to the webcast here (registration required—log in at the bottom of the page for the webcast replay).

His view is that this is an attractive asset class. As evidence, he cited how international small-caps have produced the highest rolling 10-year returns of any major equity asset classes.

Averages of Monthly Rolling Annualized 10-Year Returns
From Russell Global Index’s First Full Month (Ended 7/31/96) through 9/30/18

Averages of Monthly Rolling Annualized 10-Year Returns

Past Performance is no guarantee of future results. “U.S. Large-Cap” is represented by Russell 1000, “International Large-Cap” by Russell Global ex-U.S. Large Cap, “U.S. Small-Cap” is represented by Russell 2000, and “International Small-Cap” by Russell Global ex-U.S. Small Cap.

Speaking more specifically about the strategy he and Portfolio Manager Mark Rayner use here at Royce, David described it as a high conviction approach to the asset class, resulting in approximately 50 holdings in the strategy. This strategy emphasizes companies that are often “global number-one businesses, meaning companies that are the world leader in their niche.” They focus on companies in “sectors that are suitable for long-term investment and have the capacity to compound results, both their financial results and then eventually their total shareholder return.”

Listen to the webcast here (registration required—log in at the bottom of the page for the webcast replay).

Bio of David Nadel

David Nadel joined Royce in 2006 and he is the portfolio manager for International Premier. Previously, he was a Senior Portfolio Manager at Neuberger Berman Inc. and a Senior Analyst at Pequot Capital Management Inc. (2001-2003). He was also named to the 1999 and 2000 Institutional Investor All-American Research Teams. Mr. Nadel started his career at the French advisory firm Lazard Frerès & Co. and also worked in Hong Kong for Value Partners Group Ltd, Asia's largest hedge fund manager. David holds a bachelor's degree from Williams College and a master's degree from Harvard University, as well as a Master of Business Administration from Harvard Business School.

Important Disclosure Information

Mr. Nadel’s thoughts and opinions concerning the stock market are solely his own 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.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. 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 Russell 1000 index is an unmanaged, capitalization-weighted index of domestic large-cap stocks. It measures the performance of the 1,000 largest publicly traded U.S. companies in the Russell 3000 index. The Russell Global ex-U.S. Small Cap Index is an index of global small-cap stocks, excluding the United States. The Russell Global ex-U.S. Large Cap Index is an index of global large-cap stocks, excluding the United States. 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. The Fund may invest a significant portion of its assets in foreign companies which may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic, or other developments that are unique to a particular country or region. These risk factors may affect the prices of foreign securities issued by companies headquartered in developing countries more than those headquartered in developed countries. (Please see "Investing in Foreign Securities" in the prospectus.) Therefore, the prices of the securities of foreign companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies. (Please see “Primary Risks for Fund Investors” in the prospectus.) The Fund invests primarily in small-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. The Fund also generally invests a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than a more broadly diversified portfolio because a decline in the value of any one of these stocks would cause the Fund's overall value to decline to a greater degree. (Please see "Primary Risks for Fund Investors" in the prospectus.)

Share:

Subscribe:

Sign Up

Follow: