Charlie Dreifus in Barron’s on Royce Small-Cap Special Equity Fund’s accounting-centric approach—Royce
article 10-16-2023

Charlie Dreifus in Barron’s on Royce Small-Cap Special Equity Fund’s accounting-centric approach.

Why Barron’s thinks that small-cap stocks look promising.


Charlie Dreifus and Royce Small-Cap Special Equity Fund were mentioned in the Barron’s article, “Small-Cap Funds Are More Promising Than They Have Been in Years. Here Are the Ones to Buy,” penned by Lewis Braham, that looked at why small-cap stocks may be close to a rebound.

Read the article here (subscription required).

Braham’s piece claims that, “Although small-caps look appealing now, you should probably favor funds that minimize the downside risks.” He goes on to say that, “Small-cap stocks are a less efficient market than large-caps, which are covered widely by financial analysts, providing opportunities for active managers to add value.” before listing several funds, including Royce Small-Cap Special Equity Fund.

While acknowledging concentration risk in Special Equity and another, non-Royce portfolio, Braham states that, “Both funds are run by managers who pay scrupulous attention to small-company balance sheets, so there is less potential for individual company blowups. Royce’s fund is run by two managers with accounting backgrounds, a rarity among funds. The other risk-control measure is a strict unwillingness to overpay for stocks and a willingness to hold cash instead.”

Learn more about Charlie Dreifus.

Important Disclosure Information

Average Annual Total Returns as of 9/30/2023 (%)

NET               GROSS
Small-Cap Special Equity -3.96 15.47 11.43 5.34 5.70 8.34 05/01/98  1.21  1.21
Russell 2000 Value
-2.96 7.84 13.32 2.59 6.19 7.17 N/A  N/A  N/A
Russell 2000
-5.13 8.93 7.16 2.40 6.65 6.67 N/A  N/A  N/A
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 the Fund’s total annual operating expenses for the Investment Class as of the Fund’s most current prospectus and include management fees and other expenses.

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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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