Charlie Dreifus At The Morningstar Investment Conference
article 05-16-2019

Charlie Dreifus At The Morningstar Investment Conference

Charlie Dreifus was interviewed by Morningstar to discuss his vigilance about debt.

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Charlie Dreifus, who recently spoke on a panel at Morningstar Investment Conference, was interviewed by Kevin McDevitt to discuss how risk management shapes his work.

Watch the video here.

In the video, Charlie detailed his “refugee mentality” and how he is vigilant about debt when investing. He went on to explain how having lower financial leverage can potentially help offset the cyclicality of his small-cap holdings.

“Certainly on an individual stock basis, if you have a lot of cyclical exposure, you prefer to have lower leverage so that they can withstand a severe economic downturn,” Charlie said. “So on a case-by-case basis, the consequences tend to be many of these companies have such a strong balance sheet because, particularly in small-cap land, they have a niche business that is a cash cow.”

For FPs: Royce's Annual Special Equity Webcast
June 25th at 11:00 AM ET
Portfolio Managers Charlie Dreifus and Steven McBoyle join Senior Investment Strategist Steve Lipper to discuss the strategy. Register

 

Watch the video here.

Bio of Charlie Dreifus:

Charlie Dreifus manages the firm’s Special Equity mutual fund that attempts to combine classic value analysis, the identification of good businesses, and accounting cynicism. In 2008, he was named Morningstar's Domestic-Stock Fund Manager of the Year. Mr. Dreifus has been at Royce for 20 years and has 50 years of experience in the industry, having worked at Limited Managing Director of Lazard Freres & Co., LLC as the Portfolio Manager, General Partner, and Managing Director. He also formerly worked at Oppenheimer & Co. as a Limited Partner and as the Portfolio Manager, and at Oppenheimer Capital as an Executive Vice President. Mr. Dreifus holds a bachelor's degree from the City College of New York/Baruch School and a Masters of Business Administration from Baruch College. He is a CFA® charterholder.

 

ROYCE SPECIAL EQUITY FUND

 

Important Disclosure Information

Average Annual Total Returns as of 3/31/19 (%) 

  1Q19 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Special Equity 7.69 2.18 9.43 4.33 11.88 7.33 10.04 8.71 5/1/98
Russell 2000 14.58 2.05 12.92 7.05 15.36 8.04 8.44 8.32 N/A
Russell 2000 Value 11.93 0.17 10.86 5.59 14.12 7.24 9.40 9.14 N/A

Annual Operating Expenses: 1.18% 

1 Not annualized.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 30 days of purchase may be subject to a 1% redemption fee, payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.roycefunds.com. Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund's most current prospectus and include management fees and other expenses.

The thoughts and opinions expressed in the video are solely those of the persons speaking as of May 9, 2019 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.

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.

Percentage of Fund Holdings As of 3/31/2019 (%)

  Royce Special Equity Fund

Meredith Corporation

5.7

Company examples are for illustrative purposes only. This does not constitute a recommendation to buy or sell any stock. There can be no assurance that the securities mentioned in this piece will be included in any Fund’s portfolio in the future.

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 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

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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