Chuck Royce's New Buys in Q2 2015

Chuck Royce is known as one of the pioneers of small-cap investing. He has been the CEO of the Royce Funds since 1972. For more than 40 years, Royce & Associates, investment adviser to The Royce Funds, has used a disciplined, value-oriented approach to select micro-cap and small-cap companies.

During Q2 2015, he increased his stakes in 5 companies:

He increased by 3.78% his stake in Park Electrochemical Corp (PKE). This trade had a very easy impact on his portfolio (0.1%) and after this buy he holds 2,149,653 shares of the company at an average price of $27.34/share. Since the first quarter of 2010, he has continuously added to his stake in PKE while the price drops, and so far the investment is giving him a total loss of 20%.

The company develops, manufactures, markets and sells digital and radio frequency microwave printed circuit materials products principally for the telecommunications and internet infrastructure and high-end computing markets and composite materials, parts and assemblies products for the aerospace markets.

PKE is trading with a P/E(ttm) of 19.65 that is ranked higher than 51% of the 556 companies
in the Global Semiconductor Equipment & Materials industry, which has an average P/E(ttm) ratio of 20.60.

Over the last 5 years, revenue dropped by 3.80% and EBITDA by 5.50%.

Chuck Royce (Trades, Portfolio) is the main shareholder with 10.54% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 5.01%, and Mario Gabelli (Trades, Portfolio) with 3.2%.

He increased by 1.94% his stake in Sun Hydraulics Corp (SNHY). Even this trade had a very easy impact on his portfolio (0.1%) and after this buy he holds 2,683,868 shares of the company at an average price of $25.45/share. He has continuously increased his stake in the company since the first quarter of 2010, but here the price is mostly rising and so far the investment is giving him a total gain of 45%.

The company is a designer and manufacturer of high-performance screw-in hydraulic cartridge valves and manifolds, and integrated fluid power packages and subsystems which control force, speed and motion as integral components in fluid power systems.

SNHY is trading with a P/E of 23.23 that is ranked lower than 58% of the 1276 companies in the Global Diversified Industrials industry which has an average P/E of 20.70.

Over the last 5 years, revenue grew by 14.90%, EBITDA by 39.30, EPS by 64.50%.

Chuck Royce (Trades, Portfolio) is the main shareholder with 10.06% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.18% and Joel Greenblatt (Trades, Portfolio) with 0.55%.

He increased his stake in Matrix Service Co (MTRX) by 66.02%. This trade had an impact of 0.09% on his portfolio and after this buy he holds 2,909,975 shares of the company at an average price of $15.77/share. In the fourth quarter of 2014, he heavily increased his stake by 843.78% and so far the investment is giving him a total gain of 52%.

The Company provides engineering, fabrication, infrastructure, construction, and maintenance services to the oil, gas, power, petrochemical, industrial, mining and minerals markets. It operates in four segments namely electrical Infrastructure, Oil Gas & Chemical, Storage Solutions, and Industrial.

MTRX is trading with a P/E of 34.61 that is ranked lower than 83% of the 169 companies
in the Global Oil & Gas Equipment & Services industry which has an average P/E ratio of 13.90.

Over the last 5 years the company had strong growth rates, revenue grew by 13.90%, EBITDA by 12.10, EPS by 16.90%.

Chuck Royce (Trades, Portfolio) is the main guru of the company holding 10.89% of outstanding shares, followed by Jim Simons (Trades, Portfolio) (0.19%) and Paul Tudor Jones (Trades, Portfolio) (0.05%).

He increased his stake in Winnebago Industries Inc (WGO) by 79.39%. This trade had an impact of 0.08% on his portfolio and after this buy he holds 2,361,477 shares of the company at an average price of $15.10/share. This investment is returning him a total gain of 37%.

The Company is a manufacturer of recreation vehicles used in leisure travel and outdoor recreation activities. The Company sells motorhomes through dealers under the Winnebago, Itasca and Era brand names. Other products manufactured by the Company consist of OEM parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles.

WGO is trading with a P/E of 14.81 that is ranked higher than 54% of the 950 companies
in the Global Recreational Vehicles industry which has an average P/E(ttm) ratio of 16.90.

Over the last 5 years revenue grew by 32.10% and book value by 19.30%.

Chuck Royce (Trades, Portfolio) is the main guru of the company holding 8.77% of outstanding shares, followed by James Barrow (Trades, Portfolio) (0.55%) and Mario Gabelli (Trades, Portfolio) (0.39%).

He increased his stake in Identiv Inc (INVE) by 27.10%. This trade had an impact of 0.01% on his portfolio and after this buy he holds 1,078,396 shares of the company at an average price of $11.84/share. This investment is returning him a total loss of 38%.

The Company is a security technology company that provides trust solutions in the connected world, including premises, information and everyday items. Its trust solutions are implemented using standards-driven products and technology, such as hardware, software, digital certificates, mobility, and cloud services.

INVE is trading with a P/B of 1.48 that is ranked lower than 51% of the 2122 companies in the Global Computer Systems industry which has an average P/B ratio of 1.55.

Over the last 5 years revenue dropped by 14.80%, EBITDA by 9.10 and earnings per share by 9.30%. This negative trend is confirmed even over the last 10 years.

Even here, Chuck Royce (Trades, Portfolio) is the main guru of the company holding 10.03% of outstanding shares, followed by Jim Simons (Trades, Portfolio) (1.49%) and First Eagle Investment (Trades, Portfolio) (0.13%).

Summary