Francis Gannon in Financial Advisor—Royce
article 10-25-2021

Breaking Down or Breaking Out? Francis Gannon on Small Caps in Financial Advisor

Co-CIO Francis Gannon details his case for why small caps are poised to outperform large caps in the current environment.


Co-CIO Francis Gannon was recently featured in a Financial Advisor article, “Small Caps Set to Take Off, Royce Investment Partners Says” by Karen DeMasters, discussing why he thinks small caps are slated to outperform their large cap siblings.

Read the article here (subscription required).

Francis said that the Russell 2000 index has posted returns above its historical averages in one-year periods when the 10-year Treasury has risen, adding that the Russell 1000 lagged the small cap index in 73% of rising rate environments over the last 20 years. He noted that he’s confident in the prospects for the asset class.

“Small caps historically do well when interest rates are rising,” Francis was quoted saying in the article. “Small caps have had bland performances the past two quarters. However, today’s atmosphere is providing hope that the tide is beginning to turn.”

Read the article here (subscription required).

Learn more about Francis Gannon.

Important Disclosure Information

Mr. Gannon’s thoughts and opinions concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. All indexes referenced are unmanaged and capitalization-weighted. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)



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