Royce Investment Partners

Royce Investment Partners is a family of mutual funds that focuses primarily on small-cap investing, and has been considered one of the industry's most experienced smaller-company stock pickers.[1] Royce & Associates, LLC serves as investment adviser to all Royce portfolios, including open-end mutual funds and closed-end funds.

Royce uses a bottom-up approach to invest in small-cap and micro-cap stocks.

History

Charles M. Royce assumed investment management of Pennsylvania Mutual Fund when he purchased Quest Advisory Corp. in 1972. (The firm's name was changed to Royce & Associates in 1997.) Royce, who has been described as a "small-company stock pioneer" by American business journalist Consuelo Mack,[2] enjoys one of the longest tenures of any active mutual fund manager.

After assuming management of Pennsylvania Mutual Fund, Royce began to shift his focus toward small-cap stocks that he believed were able to generate free cash flow and better survive down-market periods. This emphasis on downside protection would become one of the hallmarks of the firm's investment approach.[3]

During the 1990s, Royce broadened its portfolio line-up and expanded its investment staff. On October 1, 2001, Royce became a wholly owned, independent subsidiary of Legg Mason, Inc.[4] In the 2000s, the company began to introduce global and international small-cap mutual fund portfolios.

Effective July 1, 2014, Co-Chief Investment Officer Christopher D. Clark assumed the role of President of Royce, a position held by Royce since he purchased the firm in 1972.

Investment approach

Royce Investment Partners invest in primarily micro-cap and small-cap companies using disciplined, value-oriented approaches. Royce portfolio managers look primarily at balance sheet strength, cash flow characteristics, and returns on invested capital when choosing stocks for the funds they manage.[5] Royce emphasizes long-term, absolute (as opposed to relative) performance.

See also

References
  1. "Can Legg Mason Bounce Back?". Barron's.
  2. "Charles Royce". Consuelo Mack WealthTrack.
  3. "Royce's Goal: Safety First". Financial Advisor.
  4. "Legg Mason to Buy Royce & Associates". Los Angeles Times. 19 July 2001.
  5. "Willing to Wait". Barron's.
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