Francis Gannon Talks Small-Caps on —Royce
article 03-04-2024

Francis Gannon Talks Small-Caps on

Co-CIO Francis Gannon discusses valuations, small-cap earnings acceleration, and which areas of the asset class look most promising.


On 2/28/24, Francis Gannon was one of three market experts quoted featured in a video and in an article on Investment News, “Small-caps ready to take over market leadership, strategists say” in which author Gregg Greenberg says, “Take note, advisors. The market’s Davids are finally taking over from the Goliaths” because “The recent run in small-cap and microcap stocks has advisors, fund managers, and strategists telling their clients that it’s time to think small.”

You can watch the video here.

You can read the article here.

In the article, Francis says, “Small-caps are going to benefit from the broadening of the overall market and the fact that they are just so cheap” before adding, “Small-cap earnings will start accelerating, doing better than the large-cap space and that’s going to be key to their outperformance.” In a discussion of possible small-cap sector leadership, Francis mentioned Industrials, Materials, and select areas in Consumer Discretionary.

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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