Miles Lewis Discusses the Case for Small-Cap Banks on Fox Business’s Claman Countdown.—Royce
article 10-26-2022

Miles Lewis Discusses the Case for Small-Cap Banks on Fox Business’s Claman Countdown

Miles talks about why he thinks that the long-term outlook for small-cap stocks is “pretty bright” and discusses why rising rates should help small-cap banks.


PM Miles Lewis was a guest on the 10/21/22 edition of the Claman Countdown on Fox Business, where he talked with anchor Cheryl Casone about the promising long-term prospects for small-cap stocks and how rising rates should help the long-term prospects for banks in the asset class.

Watch the video here.

Miles explained that trailing three- and five-year returns ended 9/30/22 for the Russell 2000 Index were lower than the index’s long-term three- and five-year averages—which has often resulted in reversals to higher-than-average small-cap returns in the past.

He also talked about what he sees as strong long-term prospects for small-cap banks such as HomeBanc Shares (Nasdaq: HOMB) in a rising interest rate environment.

Learn more about Miles Lewis.

Important Disclosure Information

Average Annual Total Returns as of 9/30/22 (%)

Pennsylvania Mutual -4.47 -24.77 -19.50 4.44 4.50 8.16 6.11 N/A N/A
Small-Cap Total Return -10.09 -22.35 -17.01 2.70 2.73 7.33 5.64 9.49 12/15/93
Russell 2000
-2.19 -25.10 -23.50 4.29 3.55 8.55 6.40 N/A N/A
Russell 2000 Value
-4.61 -21.12 -17.69 4.72 2.87 7.94 5.70 N/A N/A

Annual Operating Expenses: 0.92 (PENNX), 1.25 (RYTRX)

1 Not annualized.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 30 days of purchase may be subject to a 1% redemption fee, payable to the Fund which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at Operating expenses reflect each Fund's total annual operating expenses for the Investment Class as of each Fund's most current prospectus and include management fees and other expenses.

Mr. Lewis’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.

Percentage of Fund Holdings As of 9/30/22 (%)

  Small-Cap Total Return Pennsylvania Mutual

Home BancShares



Company examples are for illustrative purposes only. This does not constitute a recommendation to buy or sell any stock. There can be no assurance that the securities mentioned in this piece will be included in any Fund’s portfolio in the future.

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. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. 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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