Francis Gannon on the Evolution of Small Cap Investing—Royce
article 07-14-2023

Francis Gannon on the Evolution of Small Cap Investing

Co-CIO Francis Gannon examines the development of our chosen asset class on


On 7/6/23, Francis Gannon penned an article on that looks at the evolution of small-cap investing since the introduction of the Russell 2000 Index on 1/1/84—though Russell backdated performance to 12/31/78, which serves as the inception date for the index.

You can read the piece here.

Francis wrote that a benchmark devoted to small caps helped the asset class gradually gain more institutional acceptance since, “At that time, small cap companies were seen as the Wild West, a large and mostly unsettled landscape where the usual conventions of investing did not necessarily apply.”

You can read the piece here.

He concluded by discussing what he sees as the bright long-term prospects for small-cap stocks within a currently uncertain period.

Important Disclosure Information

Mr. Gannon’s thoughts and opinions concerning the stock market are solely his 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.

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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