April 25, 2014

In a WEALTHTRACK exclusive, Great Investor, Charles “Chuck” Royce, warns us not to read too much into recent super-sized stock returns, particularly off the 2009 market lows. He predicts quality companies will once again lead over speculative ones and active managers to overtake passive index strategies. This small cap pioneer, for one, has been doing that for decades.

WEALTHTRACK Episode #1044; Originally Broadcast on April 25, 2014

Listen to the audio only version here:
Charles Royce

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Director of Investments, Portfolio Manager

The Royce Funds Consuelo MackWhat is the biggest mistake individual investors make? According to next week’s WEALTHTRACK guest, Financial Thought Leader and MIT Professor Andrew Lo, it is  waiting too long to get back into the stock market after a major correction.

Talk to any financial advisor and they will tell you that many of their clients are just starting to recover psychologically from the beating they took during the financial crisis.  Five years from the 2009 market lows individual investors are just now considering getting back into stocks or adding to their stock portfolios. The question they are all asking is: is it too late?

This week’s WEALTHTRACK guest, small-cap pioneer Chuck Royce of the Royce Funds says it is not too late, but he cautions investors not to expect the outsized returns of the last five years. He warns a market correction is overdue and that the 20% plus annualized returns from the market lows are unlikely to be repeated.

He also believes as the markets return to their normal cyclical and volatile behavior,  that good active managers will outperform passive index strategies and protect investors during downturns.

Great Investor Charles “Chuck” Royce is President, Director of Investments and Portfolio Manager at the value and small-cap oriented Royce Funds which he founded in 1972. His flagship Pennsylvania Mutual Fund has outperformed the Russell 2000 for the last 10, 20 and 30 year periods. The fund has delivered impressive 14.5% annualized returns over the last 40 years.

He will discuss why he believes we have reached a turning point in the stock market, why quality will start mattering more, and the exceptional opportunities he sees in international small company stocks.

In this week’s EXTRA feature, available on our website, Royce gives his views on high-frequency trading and whether or not the market is “rigged,” as alleged by Michael Lewis in his new book Flash Boys. He also discusses his private passion for historic buildings, including his restoration of Ocean House in Watch Hill, Rhode Island where we taped his interview and other recent WealthTrack episodes.

Also, this week on WEALTHTRACK WOMEN there is an interesting discussion from experienced women financial advisors about how women investors differ from men.

Have a great weekend and make the week ahead a profitable and a productive one!

Best Regards,

Mathews Asia

Buy Some Unloved Sectors Of The Market


  • Annualized returns past 20 years over 3-year holding periods
  • Unloved Funds 10.4%
  • Loved Funds 6.4%

Source: Morningstar

“Unloved” Categories 2013:

  • Large-growth funds
  • Commodity funds
  • Precious metals funds

Kinnel’s “Unloved” Picks

  • Primecap Odyssey Growth (POGRX)
  • Harbor Commodity Real Return Strategy (HACMX)
  • Oppenheimer Gold & Special Minerals (OPGSX)
No Books from this guest.


Pick an active manager with a great long-term record
Lincoln Electric Holdings (LECO)

LECO Chart

LECO data by YCharts

Federated Investors (FII)

FII Chart

FII data by YCharts

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An exclusive interview with small-company stock pioneer Charles “Chuck” Royce. The Royce Fund’s Great Investor shares his forty years of lessons learned in the markets, what’s changed and what still works for long-term investment success.



An exclusive interview with legendary “Great Investor” Charles “Chuck” Royce. Royce pioneered investing in small company stocks with his Royce Pennsylvania Mutual Fund forty years ago this year. He’ll explain why high quality small cap stocks are undervalued compared to large cap stocks right now and the advantages they offer to investors from the vantage points of portfolio diversity, international exposure and income, three characteristics normally not associated with the small cap universe.



An exclusive interview with legendary portfolio manager Chuck Royce. The small company stock guru explains how he has beaten the market with less risk over the last 35 years and why small is still beautiful.


Chuck Royce: Trading And Restoring

With more than fifty years of investing and trading under his belt Chuck Royce has a different take on the allegation that high-frequency trading means the market is rigged.  Plus this renaissance man explains his personal passion for restoring historic buildings, including Ocean House in Watch Hill, Rhode Island the site of a recent WEALTHTRACK taping.


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