Francis Gannon on the Next Small-Cap Cycle —Royce
article 01-31-2023

Francis Gannon on the Next Small-Cap Cycle

Francis joined host Maggie Lake on’s Daily Briefing to talk about what he sees as a major regime change in the market.


On 1/27/23, Co-CIO Francis Gannon joined host Maggie Lake on’s Daily Briefing to talk about what he sees as a massive change in the market’s dynamics—one that may already be underway.

Francis talked about the fact that small-cap finished 2022 as the cheapest asset class among U.S. equities. He went on to detail why we think quality small caps—defined as those with high returns on invested capital and low leverage—were well positioned for long-term success. He also discussed how non-U.S. small caps also look attractively valued and why he believes select U.S. small caps in the industrial space could be poised to break out.

When discussing the recent shifts in monetary policy—most notably higher interest rates, Francis said, “We’re actually thinking we’re on the cusp of what could be a really exciting small-cap cycle in the U.S.”

You can watch Francis’s interview here.

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.

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