Bill Hench Talks Small Cap Value in Morningstar—Royce
article 12-29-2020

Bill Hench Talks Small Cap Value in Morningstar

PM Bill Hench was quoted in a Morningstar article discussing small cap value’s resurgence in November.

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Portfolio Manager Bill Hench was recently featured in a Morningstar article titled “Small-Cap Value Comes Back--But Not All the Way” by Linda Abu Mushrefova that discussed if November’s small cap value rally can continue.

Read the article.

The article stated that Bill, who manages Royce Opportunity Fund, said there were some positive trends that contributed to small cap value’s positive month, such as few companies announcing dissapointing earnings. He also noted that value stock sellers decreased, the risk/reward proposition was pretty good, and fundamental news was relatively good in food, auto, housing, and capital goods companies that had little capital investment and tight inventories.

Bill added that, while he understands that other investors may be willing to pay more for high-flying growth stocks due to franchises’ cash flow and disruptive business models, he isn’t willing to do so.

Read the article.

Learn more about Bill Hench here.

Important Disclosure Information

Average Annual Total Returns as of 9/30/20 (%) 

  3Q201 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Opportunity 11.11 0.10 -1.11 8.48 8.79 6.91 8.60 10.86 11/19/96
Russell 2000 Value 2.56 -14.88 -5.13 4.11 7.09 4.93 7.40 7.85 N/A
Russell 2000 4.93 0.39 1.77 8.00 9.85 7.03 6.88 7.78 N/A

Annual Operating Expenses: 1.22

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.

Mr. Hench’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.

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. The Fund invests primarily in small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss.

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