Francis Gannon in The Wall Street Journal—Royce
article 11-06-2018

Francis Gannon in The Wall Street Journal

Francis Gannon was quoted in Suzanne McGee’s piece in The Wall Street Journal, “A Reality Check for Small-Stock Investors,” discussing whether or not the recent small-cap selloff is the end of the cycle or just a pause.


The Wall Street Journal recently featured Francis Gannon in an article titled “A Reality Check for Small-Stock Investors” by Suzanne McGee.

Read the piece here (registration required).

In the piece, Francis made the case that investors hadn’t been paying enough attention to the multiple risks associated with small-cap stocks, only becoming aware of them as valuations climbed. He cited that about 35% of companies within the Russell 2000 had no earnings during the first eight months of 2018. Citing Francis, Suzanne wrote that “those stocks soared 22.8%, while companies that did produce profits got only a boost of 12.6%.”

“We had been lulled to sleep until the end of August by the lack of volatility,” Francis was quoted saying in the article.

He added that this pattern was also seen with dividend-paying companies, which climbed 8% during the same aforementioned period while non-dividend payers reached a 20.8% average. As for what an investor should do, Francis argues that they should be picky.

Read the piece here (registration required).

Bio of Francis Gannon:

Co-CIO Francis Gannon has been with Royce for 12 years, having joined in 2006. He has 25 years of experience, and in 2001 a portfolio under his management, SunAmerica Growth and Income Fund, was listed in the fourth edition of Gene Walden's book The 100 Best Mutual Funds to Own in America. He was also a regular panelist with Louis Rukeyser's Wall Street for several years. Francis holds a bachelor’s degree and a master’s degree from Boston College.

More Small-Cap Perspectives


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. 

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