David Nadel, Portfolio Manager of 2015’s number one foreign fund, Royce International Premier Fund explains why international small cap companies deserve a place in everyone’s portfolio.
WEALTHTRACK Episode #1235; Originally Broadcast on February 19, 2016
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- Portfolio Manager,
- Director International Research,
- The Royce Funds
In these uncertain times investors are looking for safety and stability. For the stock portion of our portfolios that usually means large cap U.S. stocks, which are valued for their quality, strength and liquidity.
That thesis did not work very well last year. Most major U.S. market indices lost money. The few that didn’t were propped up by a handful of tech stocks, the FANGs: Facebook, Amazon Netflix and Google.
Given the headlines coming out of international markets investors were wary of them, yet some of the best places to invest were overseas. The Euro Stoxx index advanced 8% and despite its dramatic roller coaster course, the Shanghai Composite finished the year up better than 9%.
One of the last places investors gravitate to during challenging markets is the
small cap universe, especially international small caps. That was a miscalculation last year. The Global ex-U.S.Small Cap index eked out a small gain, besting its U.S. brethren and one of the best performing foreign markets was the European Small Cap Index, which advanced more than 9%.
This week’s guest led the overseas small cap charge with two top performing funds.
He is David Nadel, Director of International Research for The Royce Funds, which was founded and is still led by small cap pioneer Chuck Royce.
Nadel is Portfolio Manager for several funds, including two funds ranked number one in their categories. The Royce International Premier Fund beat out all foreign fund competitors with its 16% plus gain last year, and the Royce European Small Cap Fund’s 13% return led its Morningstar category. Nadel will discuss the outlook for international small caps this year and why investors should consider adding them to their portfolios permanently.
If you can’t watch this week’s episode on television, you can always watch it by going to our website. In the EXTRA section you’ll find an online exclusive with Nadel about how he stays mentally fit in stressful markets.
I also want to thank all of you who are following my weekly tweets. I will be tweeting tomorrow afternoon. For those of you active on Facebook, thank you for contacting us!
Have a great weekend and make the week ahead a profitable and productive one.
“KNOW WHAT YOU OWN AND KNOW WHY YOU OWN IT”
- Do a Quick Stress Test Portolio Analysis
- What You Own is Cheaper Than it Was
- Do You Want to Make Slight Adjustments?
- Add to Long Term Holdings?
- Sell Questionable Investments?
No Bookshelf titles this week.
- VZ Holding
- Zurich Exchange, Switzerland
- Bajaj Finance, Bombay Stock Exchange, India
- Spirax-Sarco, London Stock Exchange, UK
- OdontoPrev, Sao Paolo Exchange, Brazil
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The Royce Funds’ David Nadel has to deal with turmoil and volatility in both domestic and international markets as the firm’s Director of International Research and portfolio manager of two funds, the Royce International Premier fund, 2015’s top performing foreign fund and the Royce European Small-Cap fund, its category winner. We asked him how he stays mentally fit.