ROYCE SPECIAL EQUITY FUND’S LEGENDARY CHARLIE DREIFUS EXPLAINS HIS “WINNING BY LOSING LESS” STRATEGY

February 5, 2021

One of the most notable characteristics of the last decade was the wide divergence in market performance. We have reported many times on the narrow group of superstars, mainly large-cap U.S. tech stocks and the much wider universe of laggards, value and small-cap stocks in particular. 

In 2020 that divergence blew up.  Small-cap went from worst to first. The year began disastrously.   Small-caps ended the year with their best quarterly gain ever, a stunning 31% advance in the index, handily beating large-caps for the quarter. 

When it was all over the Russell 2000 had gained 101.3% from its March 18th low to year-end, although it lagged large-cap and tech for the entire year.  

We have a WEALTHTRACK exclusive this week with an investment legend whose specialty is in-depth financial analysis in the small-cap universe. He is Charlie Dreifus, lead portfolio manager of the Royce Special Equity Fund .

Before delving into small-caps I asked Dreifus to share his perspective on current market conditions based on his half-century of managing money. A hint: he told me “I’ve seen this movie before, and it doesn’t end well.”  

WEALTHTRACK Episode #1732; Originally Broadcast on February 05, 2021

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CHARLIE DREIFUS

  • Lead Portfolio Manager,
  • Royce Special Equity Fund

TAKE SOME RISK OFF THE TABLE

  • Market Conditions Flashing Caution
  • Winning By Losing Less: A Tried And True Approach
  • Trim Some Of Your Most Elevated Holdings

No Bookshelf titles this week.

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Chalres Dreifus from the WEALTHTRACK archives:

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BEHAVIORAL PANDEMIC CHANGES

Working from home more will be a permanent effect of the pandemic experience for legendary investor Charlie Dreifus, but what about company visits, travel, colleague interactions? He discusses some of the behavioral changes he sees ahead.


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