Francis Gannon Talks Small-Cap Prospects with Morningstar —Royce
article 06-06-2023

Francis Gannon Talks Small-Cap Prospects with Morningstar

Co-CIO Francis Gannon makes the case for small-cap quality Morningstar.


Francis Gannon spoke recently to Sandy Ward and Jakir Hossain of in the piece entitled, “Markets Brief: Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive.” Francis was one of several small-cap experts who weighed in on the view that small-cap stocks are currently very attractively valued

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Francis detailed his belief that “quality companies with high returns on invested capital and great balance sheets that are generating enough cash to operate without requiring tapping the capital markets to finance their businesses.” He further emphasized that “It’s a moment in time you rarely get. It’s a forgotten asset class, and it represents a great opportunity. We could be on the cusp of a new small-cap cycle.”

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Important Disclosure Information

Mr. Gannon’s thoughts and opinions concerning the stock market are solely his 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.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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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