Francis Gannon Details His Case for Small-Cap Value on Yahoo Finance—Royce
article 05-19-2021

Francis Gannon Details His Case for Small-Cap Value on Yahoo Finance

Co-CIO Francis Gannon discussed how strong earnings for small caps could bode well for the asset class on Yahoo Finance.


Co-CIO Francis Gannon was recently featured on Yahoo Finance explaining how increased volatility is to be expected following a strong market and the rotation from growth to value.

Watch the video here.

Francis detailed that over the past 20 years when nominal GDP growth exceeded 5%, small-cap value outperformed small-cap growth 68% of the time by an average of 420 basis points.

He added that small caps posted strong earnings this year, with 71% of companies reporting that they beat expectations and 68% of those beating on the top line. “Psychology runs the market in the short term, but earnings run the market in the long term,” Francis said. “I think that’s going to be playing itself out.

Learn more about Francis Gannon here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of May 14, 2021 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.

Cyclical and Defensive are defined as follows: Cyclical: Communication Services, Consumer Discretionary, Energy, Financials, Industrials, Information Technology, and Materials. Defensive: Consumer Staples, Health Care, Real Estate, Utilities.

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