article 09-23-2014

WealthTrack Web Extra: Jay Kaplan on Translating His Early Experience with Bonds into Small-Cap Stock Analysis

In his WealthTrack Web Extra interview with Consuelo Mack, Portfolio Manager Jay Kaplan talks about his transition from bonds to small-cap stocks and the lost art of reading financial statements.


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Before managing small-cap mutual funds, Portfolio Manager and Principal Jay Kaplan began his investment career in high-yield bonds shortly after the collapse of Drexel Burnham Lambert. It was during this time of market disarray when Jay started to learn about stocks and stock analysis, he told Consuelo Mack in a WealthTrack Web Extra exclusive published September 12, 2014 on

"I got into the stock business, eventually the small-cap stock business, and it's taught me to focus on the downside," said Jay. "The way I approach small-cap stocks is to look for companies where expectations are very, very low, where prices in the marketplace are very, very low, where Wall Street has really thrown the baby out with the bath water… It's a way to try and bring risk control to what is otherwise a very, very risky asset class," he added.

Jay Kaplan has 26 years of investment experience, 13 of which at Royce. He manages Royce Total Return and Dividend Value Funds (with Chuck Royce as Lead Portfolio Manager), Royce Value Fund, and Royce Capital Fund – Small-Cap Portfolio. Jay also assists on Royce Pennsylvania Mutual Fund alongside Lauren Romeo.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

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. Investments in securities or small-cap stocks may involve considerably more risk than investments in securities of larger-cap stocks. (Please read "Primary Risks for Fund Investors" in the prospectus.)



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