Bill Hench On Asset TV’s Small-Cap Masterclass—Royce
article 06-05-2020

Bill Hench On Asset TV’s Small-Cap Masterclass

PM Bill Hench joined Asset TV’s Small-Cap Masterclass to discuss how recent market disruptions have created opportunities in small-caps and how he’s investing for the long term.

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Portfolio Manager Bill Hench joined host Jenna Dagenhart and another investment professional on Asset TV’s Small-Cap Masterclass, which aired June 3, 2020, to discuss what opportunities the tumultuous market has created for small-caps and how he is investing for the long-term despite uncertain times.

Watch Bill’s appearance here.

Bill explained that when the market started going down, he and his Deep Value team began examining the turnarounds they currently held while also looking into new opportunities. He added that due to the unknown times we’re currently living in, he’s taking a careful approach to see if the companies he’s buying can weather the storm.

“We're looking for people that are going to come out of this and do much better than perhaps the market is looking for,” he added. “So, if there's something that could be some support, some competitive advantage, because of the new world, or if they've been able to improve themselves during a difficult time like this. Anything that's not so obvious, we're looking for. So, we're looking for turnarounds, we're looking for things that are going to grow better than expected."

Bill noted that in times like these portfolio managers are challenged to maintain performance, stick with their discipline, and provide maximum upside. “It's always hard, but I think when you do have disruptions like this, ironically that's when you get the best chance to really shine,” he added.

Watch Bill’s appearance here.

Learn more about Bill Hench here.

Important Disclosure Information

Average Annual Total Returns as of 3/31/20 (%) 

  2Q201 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Opportuity -37.14 -29.50 -9.26 -2.69 4.77 4.79 6.90 9.35 11/19/96
Russell 2000 -30.61 -23.99 -4.64 -0.25 6.90 5.71 5.28 6.69 N/A
Russell 2000 Value -35.66 -29.64 -9.51 -2.42 4.79 4.11 6.83 7.11 N/A

Annual Operating Expenses: 1.20

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 www.royceinvest.com. 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.

The thoughts and opinions expressed in the video are solely those of the persons speaking as of May 20, 2020 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.

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.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

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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