From upcoming U.S. midterm elections to ongoing deregulation, four small-cap specialists discuss what they believe many investors are not considering -- but should be.
Small cap stocks
Royce co-CIO Francis Gannon explains why he thinks select small-cap cyclicals look well positioned to lead in the months ahead.
Increased volatility is obscuring the rising strength of small-cap earnings, which we believe should ultimately translate into leadership for certain cyclical sectors—those that combine profitability, relatively attractive valuation, and global exposure.
History suggests that it's time for value stocks—as well as cyclical sectors—to take the lead in small-caps, yet investors seem to be resisting the shift. What's behind the disconnect?
The case for a strategic allocation to international small cap is well supported by historical data.
Chart of the Week
Chart courtesy of Clarion Partners. * Source: CBRE-EA, Clarion Partners Investment Research, Q3 2018, latest available figures. Past performance is no guarantee of future results. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
U.S. consumers had a downbeat December; China-U.S. trade talks were set to reconvene in Washington; Mexico's Pemex got yet more help; U.K. clothiers discounted deeply, pre-Brexit
Royce sees ample opportunities in the wake of one of small-cap’s most challenging quarters in 40 years.
Royce co-CIO Francis Gannon explores why ongoing earnings strength for small-cap cyclicals is bolstering confidence in the sector.
Much Ado About the Midterms? Royce managers offer their insights about the investment implications on small-cap stocks.
Surveying the small cap landscape after a period of strong gain, Royce co-CIO Francis Gannon is selectively bullish -- but generally wary of the considerable risks for growth stocks and defensive industries.
During the first six months of 2018, small-cap stocks enjoyed the good times bred by a bull market that at this writing has not yet slowed down.
Despite a wild finish, the second quarter was still markedly more bullish and less volatile than the first—and saw a shift in small-cap style leadership that we’ll be watching closely.
Co-CIO Francis Gannon explains why upward revisions to CapEx spending could be very good news for small-cap cyclicals.
Thoughts on Brexit, tariffs, and the need to look beyond a company's home country to understand the true scope of its business.
Bill Hench looks at the dynamics in the retail industry and outlines the factors that he thinks will help some companies to survive and thrive.
...and probably here to stay, notes Royce co-CIO Francis Gannon. His advice: tune out the noise about tariffs and rising rates, and instead focus on cyclical small caps with improving earnings and global exposure.
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