Small-cap stocks in general have generated subpar returns in the last five years and have underperformed large-cap stocks by a wide margin over the last nine. However, Royce believes that small caps are due for a significant and lasting rebound. He says that history is the best guide to future performance, and that small caps have outperformed large caps over the long term.
Chuck Royce is a small-cap pioneer with over 50 years of experience in the investment industry. He is the chairman of Royce Investment Partners, which he founded in 1973. Royce is also a portfolio manager on four Royce mutual funds and three closed-end funds. He is best known for his flagship fund, the Royce Pennsylvania Mutual Fund, which he has managed since 1972.
In this exclusive interview, Royce discusses why his Royce Pennsylvania Mutual Fund has outperformed its benchmark for over half a century and why he believes small-caps are laying the foundation for an extended cycle of above-average returns.
WEALTHTRACK Episode #2002 broadcast on July 07, 2023
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CHARLES “CHUCK” ROYCE
- Founder & Chairman, Royce Investment Partners
- Lead Portfolio Manager, Royce Pennsylvania Mutual Fund
ACTION POINT
STAY INVESTED IN STOCK
S&P 500 cumulative returns1930 to 2/28/23
- Missing 10 best days per decade: 33%
- Staying invested: 18,761%
Source: BofA Global Research Equity Strategy Focus Point: Cash for the near term, stocks for L-T, but be wary of bonds 3/29/2023
ONE INVESTMENT
AIR LEASING LEADER
Buy Air Lease Corporation (AL)
STOCK, BOND, FUND MENTIONS
First Citizens BancShares Inc. Class A (FCNCA)
Artisan Partners Asset Management Inc Class A (APAM)
Lazard Ltd Class A (LAZ)
Morningstar Inc (MORN)
ARCHIVES
Savita Subramanian from the WEALTHTRACK Archives:
WEB EXTRA
LOVE OF INVESTING
Why is Chuck Royce’s love of investing undiminished after managing the Pennsylvania Mutual Fund for 51 years?
