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. 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
Micro-Cap is a SPICE compatible analog/digital circuit simulator with an integrated schematic editor that provides an interactive sketch and simulate environment for electronics engineers. It was developed by Spectrum Software and is currently at ...
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
s.
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
Consuelo Mack (née Cotter, born 30 November 1949 in New York, New York) is an American business news journalist and host of ''WealthTrack'', a news program presented by WLIW-TV in New York City, distributed by American Public Television, and air ...
, 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.
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.
Legg Mason was an American investment management and asset management firm headquartered in Baltimore, founded in 1899 and acquired by Franklin Templeton Investments as of July 2020. As of December 31, 2019, the company had $730.8 billion in asse ...
In the 2000s, the company began to introduce global and international small-cap
mutual fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV i ...
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.
Royce emphasizes long-term, absolute (as opposed to relative) performance.
See also
*
Active management
Active management (also called ''active investing'') is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive man ...
*
Value Investing
References
External links
The Royce Investment Partners Official Website
{{DEFAULTSORT:Royce Funds, The
Mutual funds of the United States
Investment companies based in New York City
Financial services companies established in 1972
1972 establishments in New York (state)