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Results 151–200
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Equities Remain Resilient in Current Environment
by Charlie Dreifus of The Royce Funds,
While there was a brief shift towards higher quality from April through mid-May, low quality reasserted itself in June to mark a fairly mutedand mixedsecond-quarter performance for small-caps. Forty-plus-year industry veteran Charlie Dreifus discusses the market's behavior during this period, as well as the U.S. economy and stock market.
Hong Kong: A Rich Market for Long-Term Investors
While largely out of favor, we are finding Hong Kong-listed Chinese companies that possess the characteristics we typically look for in our investmentshigh returns on invested capital, strong balance sheets, and attractive dividend yields. Portfolio Managers Jim Harvey and Dilip Badlani run through some names they currently like and talk about why the market is still appealing.
How Jay Kaplan Interprets Royce's Investment Process
At the heart of our investment process is risk management, a hallmark of our work put into practice by Chuck Royce more than 40 years ago. To this day, mitigating, controlling, and thinking about risk continues to guide our seasoned staff of investment professionals and to inform our long-term portfolio decisions. Co-Chief Investment Officer Francis Gannon sits down with Portfolio Manager Jay Kaplan to talk about our process.
Absolute Returns with Less Volatility: A Premise of Our Firm
In stark contrast to last year's virtually correction-free bull market, 2014 has already seen two pullbacks large enough to give investors pause. Chuck Royce and Co-Chief Investment Officer Chris Clark discuss the current environment and how we as a firm have attempted to guard against the market's volatile behavior.
Looking Closer at Morningstar Peer Groups for Fund Analysis
Director of Risk Management Gunjan Banati sits down with Co-Chief Investment Officer Francis Gannon to discuss the results of her Morningstar peer group research whitepaper and suggests ways in which investors can compare funds within peer groups more effectively.
Chuck Royce on 2Q14: Fundamentals Reassert Their Importance
by Chuck Royce of The Royce Funds,
Since the May 2013 low for the 10-year Treasury, we have seen the market shift its focus to more fundamentally and financially stronger companies with attractive long-term prospects—qualities that we have always championed at Royce.
Stock Picking Matters in the Current Market Climate
by Whitney George of The Royce Funds,
Has the current market environment begun to favor less speculative companies and investment managers with a more active orientation? Director of Investments, Managing Director, and Portfolio Manager Whitney George talks about valuations, sectors and industries that he believes look promising, and some names in which he has high conviction.
What Opportunities Do Active and Passive Strategies Provide in the Current Market?
In the post financial-crisis period, there has been much debate over active versus passive strategies. Co-Chief Investment Officer Chris Clark and Chuck Royce discuss this topic, along with active management in the small-cap space, the characteristics of an actively managed portfolio versus those of an index-based portfolio, current small-cap opportunities, and the case for active management in today's environment.
When is it Time to Sell: A WWE Case Study
by Jay Kaplan of The Royce Funds,
As disciplined, contrarian investors, our take on a stock is often at odds with Wall Street's consensus. Portfolio Manager and Principal Jay Kaplan explains why we carefully assess the value of our holdings and why discipline and conviction are paramount to both buy and sell decisions.
Why We're Often Bullish When the Market Turns Bearish
by Francis Gannon of The Royce Funds,
While economic anxiety has hit the market prior to the often bearish summer months, we continue to concentrate on matters less publicized: a shift in equity market leadership in favor of quality driven by rising interest rates.
Will a Rise in Rates See a More Lasting Shift to Quality?
by Charlie Dreifus of The Royce Funds,
Late March saw signs of a re-emergence and shift back to the kind of quality names that we like. Portfolio Manager and Principal Charlie Dreifus discusses the recent Fed policies and their effects on the market, his outlook on the U.S. and global economy, current valuations, small-cap quality, and more.
Looking at Current Long-Term Growth Plays
by Chip Skinner of The Royce Funds,
Portfolio Manager and Principal Chip Skinner talks about the market's more volatile behavior in the first quarter, potential growth areas that he finds interesting, ideas in which he has high confidence, and one stock that has recently done well for him.
Chuck Royce on 1Q14: Despite Minor Pullback, Market Still Shows Strength
by Chuck Royce of The Royce Funds,
Despite the market's subdued first-quarter performance, annualized total returns for the major indexes remained in double-digit territory for the one-, three-, and five-year periods ended March 31, 2014. President, Director of Investments, and Portfolio Manager Chuck Royce offers his thoughts on the market's behavior during the first quarter and why he thinks investors can expect a major correction within the next twelve months.
Gain International Exposure with Small-Caps
by David Nadel of The Royce Funds,
Portfolio Manager and Director of International Research David Nadel discusses our attraction to international small-caps, how our investment approach translates into the international small-cap universe, how we try to avoid value traps, the effect monetary policy has had on our approach and performance, and more.
What Columbus Missed: Royce Rediscovers India
by David Nadel of The Royce Funds,
In 1492, Italian explorer Christopher Columbus set sail to discover India. He missed his mark, however, landing in America instead. The rest, as they say, is history-with the exception that more than 500 years later India is still worthy of discovery for many Western investors.
The State of International Small-Cap
by Francis Gannon of The Royce Funds,
While some argue that domestic small-cap leadership in 2013 was a result of its heavy exposure to companies that tend to generate most of their income domestically, others contest that this greater focus on the U.S. may mean missing out on the benefits of faster-growing foreign economies. We, on the other hand, choose to focus our attentions on individual companies, particularly those in more cyclical areas of the market that are more closely tied to the global economy.
The U.S. an Oasis in a Global Sea of Problems
by Charlie Dreifus of The Royce Funds,
Despite the ongoing political and economic uncertainty in the emerging markets and a slow start for stocks in 2014, Portfolio Manager and Principal Charlie Dreifus believes the U.S. economy is in good shape going forward.
Chuck Royce on 4Q13: Abnormally High Returns Reinforce Our Absolute Bias
by Chuck Royce of The Royce Funds,
In a market thats behaved far from normally, we are sticking with what we believe works best for our shareholders-finding quality small-caps at what we think are attractively inexpensive valuations that have the ability to generate strong long-term returns. President, Director of Investments, and Portfolio Manager Chuck Royce offers his thoughts on last years small-cap performance and the prospects for high-quality small-caps.
Some Small-Caps Are More Global Than Others
by Francis Gannon of The Royce Funds,
How much of a contribution have overseas revenues made to this years dynamic domestic small-cap rally? Part of the answer lies in where portfolios invest and where they do not. Portfolio Manager and Principal Francis Gannon notes the emerging strength shown by those more economically sensitive sectors that are closely tied to global economic activity.
GameStop and Our Long-Term, Contrarian Investment Approach
by Jay Kaplan of The Royce Funds,
Because our contrarian approach emphasizes a long-term time horizon, we tend to invest in companies that we believe have the financial wherewithal to withstand out of favor periods. GameStop used trying times to build conviction and expand its core business rather than abandoning its discipline to meet outside expectations.
The Market May Be Signaling a Return to a More Typical Recovery
by Whitney George of The Royce Funds,
Despite the Feds indecision about whether or not to taper, we see evidence that business activity is normalizing and the global economy is getting healthier. Co-CIO, Managing Director, and Portfolio Manager Whitney George talks about how economically sensitive sectors have begun to benefit from rising rates in the small-cap rally, how recent news coming out of China has affected certain portfolio investments, where he is currently seeing long-term opportunities, and stocks in which he has high confidence.
Are Investors Paying More Attention to Quality Small-Caps?
by Francis Gannon of The Royce Funds,
Although it covers only a brief time period, recent research by Furey Research Partners showed that since the beginning of May 2013 through September 30 the lowest leveraged companies outperformed the highest leveraged companies within the Russell 2000to us a long-anticipated reversal and an encouraging signal that suggests investors have not abandoned quality despite an environment of easy money and near-zero interest rates.
Chuck Royce on 3Q13: Quality Small-Caps Can Continue to Bear Fruit
by Chuck Royce of The Royce Funds,
Co-CIO, President, and Portfolio Manager Chuck Royce discusses his outlook on the current state of the small-cap market, his continued confidence in quality despite the Feds announcement in September to prolong its ongoing stimulus efforts, and the current case for active small-cap management.
Opportunity Out of Uncertainty: Finding Investment Ideas in a Rising Market
by Jay Kaplan of The Royce Funds,
Portfolio Manager and Principal Jay Kaplan talks about investing in a slow-growth, high-price environment and discusses where we are in the current retail cycle, companies in which he has high confidence, and his experience with a long-term holding.
Hong Kong: A Gateway to Chinese Companies
by Dilip Badlani of The Royce Funds,
While many investors and businesses in Hong Kong are struggling with Chinas slowed-growth policy, increased rates on commercial rentals, and government intervention to cool the residential property market, we at Royce are looking for opportunities in Hong Kong-listed companiesour primary entrance to gain access to Chinese companieswhose valuations are reflective of the macro challenges facing their economy.
What Does an Improving Economy Mean for Stocks and Bonds?
by Charlie Dreifus of The Royce Funds,
With the economy improving, inflation tame, and a Federal Reserve meeting approaching in September, Portfolio Manager and Principal Charlie Dreifus believes that small-caps remain an attractive option within the equities market.
Whitney George on 2Q13: Stocks Continue to Look More Appealing Than Fixed Income
by Whitney George of The Royce Funds,
In addition to detailing what sectors currently look attractive to him from a valuation standpoint, Co-CIO, Managing Director, and Portfolio Manager Whitney George discusses three stocks that exemplify his approach, the current case for active small-cap management, why stocks look more attractive than fixed income, and his opinions on the markets decline in late June.
Why a Normalized Yield Environment Marks the Return of Capitalism
by Francis Gannon of The Royce Funds,
While market sentiment over the past few years has shifted between confidence and fear, the quality companies that we covetand never abandonedhave been relatively ignored. Portfolio Manager Francis Gannon suspects that, although a shift back to a more normalized environment will mean continued volatility, the landscape will be more favorable for active managers.
Bullish on Quality and Active Management Over the Long Term
by Chuck Royce of The Royce Funds,
While solid on an absolute basis, quality stocksas measured by returns on invested capitalhave lagged their lower-quality peers. Chuck Royce explains why shifts in Fed policy should help to complete a reversal thats already begun.
Are Actively Managed Funds About to Gain an Edge
by Francis Gannon of The Royce Funds,
Although 10-year Treasury rates rose last month, the strong performance of certain cyclical sectors within small-cap looks to us like investors may be showing a bit more confidence in areas favored by many active investment approaches.
Searching for Super Small-Cap Companies Through the Macro Noise
by Chris Clark of The Royce Funds,
While market pundits tell us to worry about everything from currency concerns and environmental challenges to the ongoing threat of nuclear assault and resource depletion, these ominous obstacles and the endless possibilities of their potential fallout have a tendency to draw attention away from what we believe really matters: the companies that have the ability to survive, adapt, and grow stronger in the wake of uncertainty.
The Clock is Ticking for Passive Management
by Team of The Royce Funds,
It may feel like only yesterday, but it has been four years since the equity market bottomed in March 2009. Much has changed since that timegovernment debt and the Feds balance sheet have exploded, bond yields have declined, and quantitative easing has become the norm.
What Will Drive the Market?
by Charlie Dreifus of The Royce Funds,
The sequester adds to the economic headwinds caused by ending the payroll tax holiday and the boost in tax rates. However, even with the sequester, total federal government outlays will rise this fiscal year. Finally, after more than a month of daily increases for a gallon of unleaded gasoline, prices are now declining. This has been of concern as rising oil and gasoline prices were yet another headwind facing the U.S. economy. (Oil prices have also declined.)
M&A and Dividends Likely Drivers of the Market
by Charlie Dreifus of The Royce Funds,
The sequester adds to the economic headwinds caused by ending the payroll tax holiday and the boost in tax rates. However, even with the sequester, total federal government outlays will rise this fiscal year. Finally, after more than a month of daily increases for a gallon of unleaded gasoline, prices are now declining. This has been of concern as rising oil and gasoline prices were yet another headwind facing the U.S. economy. (Oil prices have also declined.)
Capex Revival
by Francis Gannon of The Royce Funds,
For some time now, we have been noting the defensive nature of the investment environment, one in which fear and uncertainty continue to be the major forces driving markets. Interestingly, this trend has held true for both investors and corporations alike of late. Even after a powerful move from the low of last November, for example, investors remain fearful about cyclical or economically sensitive sectors while at the same time embracing those very sectors that benefit from easy money, are defensive by nature, and are supposedly riskless.
Chuck Royce on Q4 2012: Quality Rising
by Chuck Royce of The Royce Funds,
Do you think the market's strength in the year's second half marks the beginning of a more historically normal period for equities? I do. Of course, we've been calling for a more typical market environment for a while now, so our recent forecasting has been less than stellar. However, the market's second-half results were telling. In the third quarter we saw many quality stocks keep pace with the small-cap market as a whole. Many of these businesses then went on to outpace the Russell 2000 in the fourth quarter, particularly in October, when the rally began to cool.
Another Look at Small-Cap Myths
by Francis Gannon of The Royce Funds,
A few years ago we wrote about several small-cap myths. As we begin the New Year, we thought it might be helpful to revisit some of the more prominent misconceptions about our chosen asset class and to examine how they have factored into recent performance.
Japan: Abundant Opportunities Despite Debt-Induced Deleveraging Cycle
Over the last two decades, Japan has suffered under the malaise of deflationary deleveraging after its stunning growth between the 1960s through the end of the 1980s. In 1991, economists were predicting that Japan would overtake the U.S. as the world's largest economy by 2010. Instead, Japan's GDP has stayed largely stagnant over this time period as the country has been trapped in a debt-induced deleveraging cycle.
High Uncertainty, Low Optimism
by Francis Gannon of The Royce Funds,
In these uncertain times, we continue to follow our discipline and to identify those ideas that we believe will be the beneficiaries of potentially better economic times ahead. Many of the economic events that the markets feared would pull the U.S. economy into recession have already occurred, including the rapid slowdown in China and the recession in Europe. As the saying goes, bull markets climb a wall of worrysurprisingly , the Russell 2000 gained 12.35% year-to-date, 13.09% over the one-year, 13.85% over the past three years, and 8.71% over the past 10 years through the end of November.
2Q 2012: Why I Still Believe in the Long-Term Viability of Stocks
by Chuck Royce of The Royce Funds,
Royce's President and Co-CIO talks about recent volatility, correlation, and why he still has confidence in stocks...How long do you think the market will be caught in this volatile, range-bound pattern? I think it's impossible to say with any certainty, though obviously we'd all like it to be over soon. There's vast turmoil going on in Europe, which is having an effect on the equity markets, and that is a large part of this range-bound phenomenon that has characterized the markets.
Are Small-Caps Overexposed to International Markets?
by Frank Gannon of The Royce Funds,
Frank Gannon looks at U.S. small-caps and how much revenue they derive from non-U.S. sources. According to a recent report by Steven DeSanctis of Bank of America-Merrill Lynch, small-caps derive less than 20% of their revenues from outside the U.S. but almost 45% of all companies in the Russell 2000 have overseas exposure.
1Q 2012: Why The Rally Can Last
by Chuck Royce of The Royce Funds,
We're seeing one of those rare occasions when one of our predictions for the market as a whole worked out almost exactly the way we thought it would. For a while now, we have been noting the disjunct between the very negative and alarmist headlines and the more optimistic view our own analyses and contacts with managements were revealing. It seemed to us as early as last September that the economy was in better shape than the conventional wisdom was suggesting.
Results 151–200
of 219 found.
