Small cap stocks
If the Russell 2000 index were a company, how attractive would it be to investors? Royce co-CIO Francis Gannon has his doubts.
Portfolio Manager Chuck Royce and Co-CIO Francis Gannon see a consolidating asset class ready to make its next move up.
Co-CIO Francis Gannon discusses the ongoing consolidation in small-caps, while also touching on earnings, valuations, and the prospects of a pick-up in volatility.
International small-caps have attractive attributes and active managers are well positioned to uncover the best that this underutilized asset class has to offer.
Small cap stocks have far less sensitivity to interest rate moves than their large-cap cousins -- a quality worth considering given the Fed's plans to normalize rates further this year.
Chart of the Week
Source: Bloomberg and Legg Mason, Jan 18, 2018. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
For unemployment claims, the devil was in the details; Global oil looked to offer its own cure for high crude prices; China growth beat expectations
Looking beyond the U.S.
Why should investors consider maintaining a small but consistent allocation to this often-overlooked asset class? The answer is simple: superior risk-adjusted returns with very low correlation to traditional equities.
Smaller companies in cyclical sectors that do business abroad -- or with other U.S. firms that have global exposure -- could be well positioned to benefit from improving global growth.
CEO and CO-CIO Chris Clark and Director of Risk Management Gunjan Banati discuss the significance of incorporating Environmental, Social, and Governance Factors into Royce's investment process.
Royce Co-CIO Francis Gannon looks at recent small-cap results and sees a consolidating asset class setting the stage for its next move up
Will the recent run-up in the Russell 2000 hold? Co-CIO Francis Gannon examines the forces behind the latest rise.
It was a curious quarter for small-caps, with several key trends in 2016 reversing. Royce Co-CIO Francis Gannon analyzes the cross-currents, why they may be temporary, and why the small-cap rally has room to run.
Given the many risks specific to the small-cap sector, active managers like Royce's Bill Hench must constantly update their views on companies and markets.
When good things are happening in the stock market, investors can be forgiven for forgetting about volatility.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.