Chuck Royce

Chuck Royce

Last Update: 01-17-2018

Number of Stocks: 1234
Number of New Stocks: 176

Total Value: $15,088 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Chuck Royce past Portfolios

Chuck Royce 13F Filings

Portfolio DateNumber of StocksTotal Value (Mil)Number of New StocksQ/Q Turnover

Chuck Royce 13D/G Filings

Filing date : 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-12-31, 2017-11-30, 2017-11-30, 2017-10-31, 2017-10-31, 2017-10-31,

Chuck Royce Watch

  • Small-Cap Investor Chuck Royce Boosts Bets on 3 Stocks

    Chuck Royce - Small-Cap Investor Chuck Royce Boosts Bets On 3 Stocks

    Chuck Royce (Trades, Portfolio), a pioneer in small-cap investing at The Royce Funds, reported 14 new adjustments to the stock holdings in his portfolio on Dec. 31, Real Time Picks reported.

    The three positions he made significant increases to were Amber Road (NYSE:AMBR), Synalloy Corp. (NASDAQ:SYNL) and CUI Global Inc. (NASDAQ:CUI).


  • Royce Funds - Why Our Focus Is on Profitability, Cyclicals and Economic Growth

    Chuck Royce - Royce Funds - Why Our Focus Is On Profitability, Cyclicals And Economic Growth What stands out to you about the way the small-caps performed in 2017?

    Chuck Royce (Trades, Portfolio) It was an odd year in a lot of ways, although it was also a good one for equities as a whole. After a robust comeback in 2016, small-cap value underperformed, which was admittedly not what we were expecting. On the other hand, international small-caps rebounded in a big way, which was much more in line with our expectations because they had been trailing domestic small-caps for a number of years prior to 2017.  

  • Royce Funds - Be Selective and Lower Your Expectations: Six Small-Cap Points for 2017 and Beyond

    Chuck Royce - Royce Funds - Be Selective And Lower Your Expectations: Six Small-Cap Points For 2017 And Beyond

    4Q17 Gave Us More of the Same…

    In 2017’s final quarter, the U.S. markets extended the performance pattern that characterized the first three quarters of the year: Small-cap growth beat value, large-cap beat small-cap, and international small-caps beat their US counterparts.


  • Royce Funds Commentary: How Risky Is the Russell 2000 Right Now?

    Chuck Royce - Royce Funds Commentary: How Risky Is The Russell 2000 Right Now? If the Russell 2000 were a company, would you buy it?

    While admittedly a rhetorical question on our part, it also highlights some of the important challenges facing investors right now as we move toward completing a second consecutive year of positive small-cap returns and the near certainty of lower corporate tax rates mixed with mounting concerns over equity valuations throughout the U.S. stock market.

    In other words, the signals remain mostly positive—global growth is expanding, GDP at home is trending upwards toward 3%, and we have normalizing, slowly rising interest rates across the developed world.


  • Chuck Royce Curbs IXYS Position, Boosts Circor International

    Chuck Royce - Chuck Royce Curbs IXYS Position, Boosts Circor International

    Royce & Associates leader Chuck Royce (Trades, Portfolio) disclosed this week his firm reduced its position in IXYS Corp. (NASDAQ:IXYS) and increased its Circor International Inc. (NYSE:CIR) holding on Nov. 30.

    With a portfolio of 1,234 holdings, Royce's firm focuses on investments in the small-cap space. The current portfolio is largely composed of industrial stocks at 26.6%. In 2016, the Premier Fund returned 23%, outperforming the S&P 500’s return of 11.96%.


  • Royce Funds Commentary: The Impact of Tax Reform on Small-Caps

    Chuck Royce - Royce Funds Commentary: The Impact Of Tax Reform On Small-Caps

    Watch the video here.

    What needs to happen to sustain current small-cap valuations?

    Valuations are not inexpensive. We can debate as to how expensive they are. At this level, with the hope and expectation of higher interest rates and inflation, again, that normalization process, it's hard to make the case. It's virtually impossible to make the case for higher multiples.

    You need earnings growth. And for earnings growth, we need sales growth. One thing that's clear, quantitative easing did not accomplish much in terms of the real economy. It inflated asset prices, but did very little as it affected the real economy.

    So, at this stage, we're going to require some action of government. It's either going to be public works kind of projects, infrastructure and the like, or some kind of tax cut/reform, that invigorates, or gives some kind of stimulus to the economy allowing sales to grow more rapidly, which will allow earnings to grow, which would allow prices to advance.

    Could a correction come in time instead of in price?

    Definitely, that can happen. It historically has happened. If there were time for earnings to truly advance and prices didn't, valuations would be better, and it would give portfolio managers like myself an opportunity to repopulate. It's very difficult to find attractive names in the current environment.

    How do you see small-cap companies allocating their tax savings?

    It's interesting. My companies, in my portfolio, don't have a lot of debt. Those that have a lot of debt, and if the tax policy has limits on the deductibility of interest, clearly, debt pay down, debt reduction, will be one item that would be focused on. I suspect we're going to get good dividend growth.

    Small-cap companies tend to run in niche businesses, and the reinvestment opportunities within those are somewhat more limited. They can obviously try buying someone else. They can do stock repurchases. But I think it will be balance sheet-centric.

    I think once the tax policy is pretty much known, I think there will be a removal, or lessening of the hesitation and uncertainty. So, people who were concerned about those issues might indeed proceed with CAPEX.

    How might tax reform affect small-caps and the U.S. economy?

    Tax reform would definitely help the economy in toto. The degree might vary and unanswered are issues such as the effect on the deficit and so forth. But it's certainly a positive. Small-caps could be benefited several ways.

    Most small-cap companies being more US-centric than large-caps pay a fuller tax rate. And, to the extent that taxes decline, earnings would go up. Cash flow would go up.

    There's another element that has gotten discussed, but not so much as to the consequences regarding small-caps, and that is the repatriation part of reform. Large companies will be the primary beneficiaries, but when they bring those monies back they have a lot of opportunities as to what to do with it.

    But given the stage of the cycle we're in, and the difficulty in further reducing costs at this late stage, I think large companies are going to be prone to acquiring strategic acquisitions, i.e., their competitors. And some of those will be smaller companies. I think I have many of those potential targets in my portfolio. You should get some transactional value appearing in the small-cap names.

    The acquiring company, the larger company gets the mathematical accretion that comes with acquisitions. But they also, the reason for doing it, is the synergies that they may be able to employ through reducing factory count paying only once for R&D.


  • Chuck Royce on What You Need to Know About Small-Caps

    Chuck Royce - Chuck Royce On What You Need To Know About Small-Caps Francis Gannon: Chuck, it was an up-and-down third quarter. Rates bottomed somewhere around September 7th timeframe, and right around that timeframe we began to see that shift back to the value again. What are your thoughts on that and where do you think we are in that normalization process?

    Chuck Royce (Trades, Portfolio): I do think rates are the single most important indicator of style at the moment. And, for me, this normalization process is a very critical process that influences value, therefore, influences active managers. I think it’s very significant. And I think it puts us back in the place that we started with in early '16, where we had a beginning of a longer run for value. And I believe that is being reestablished as we speak.   

  • Royce Funds: Where Are Small-Caps Headed Next?

    Chuck Royce - Royce Funds: Where Are Small-Caps Headed Next?

    Co-CIO Francis Gannon on the state of the current small-cap market, the prospects for value's leadership, and why cyclical businesses with global exposure continue to look attractive.

    Watch the video here.


  • Royce Funds: Will Amazon Kill All Retail?

    Chuck Royce - Royce Funds: Will Amazon Kill All Retail?

    Portfolio Manager Charlie Dreifus looks at the impact of e-commerce and how it’s affected his investments in small-cap retailers.

    Watch the video here.


  • Royce Funds Commentary: Are Small-Cap Cyclicals Signaling Good News About the Economy?

    Chuck Royce - Royce Funds Commentary: Are Small-Cap Cyclicals Signaling Good News About The Economy?

    Small-cap returns have often been seen as something like economic mood rings, those briefly trendy baubles from the 1970s.

    Broad-based bullishness is thought to reveal confidence or optimism about growth while more narrow markets (usually led by defensive stocks) generally expose feelings of caution or even pessimism about economic prospects.


  • Royce Funds: Why Do Small-Cap Cyclicals with Global Exposure Look Poised to Lead?

    Chuck Royce - Royce Funds: Why Do Small-Cap Cyclicals With Global Exposure Look Poised To Lead? With small-caps up more than 20% over the past year, what is your take on current valuations?

    Chuck Royce (Trades, Portfolio) Small-cap valuations are definitely elevated. It's been more than 18 months since the Russell 2000 declined more than 7%. That kind of run will definitely help create higher-than-usual valuations. However, I think investors need to keep current small-cap valuations in context. My own view is that valuations are fair; not great, but not extremely high either.  

  • Chuck Royce Curbs 2 Retail Positions in 3rd Quarter

    Chuck Royce - Chuck Royce Curbs 2 Retail Positions In 3rd Quarter

    During the third quarter, Royce Premier Fund manager Chuck Royce (Trades, Portfolio) reduced his positions in Buckle Inc. (NYSE:BKE) and Cato Corp. (NYSE:CATO) as the companies offer weak revenue guidance for the rest of the year.



  • Royce Funds: How Does This Royce Portfolio Manager Find New Ideas?

    Chuck Royce - Royce Funds: How Does This Royce Portfolio Manager Find New Ideas?

    How does a new idea get into the portfolio?

    There are lots of ways that I find new ideas. One of the basic ways is by running a screen. We have some elegant software that does this. Anybody sitting at home at their PC can do the same thing without the elegant software. It's all on the internet and it's pretty easy to do today.


  • Royce Funds: The September Shift to Small-Cap Value + 5 More Observations on 3Q17

    Chuck Royce - Royce Funds: The September Shift To Small-Cap Value + 5 More Observations On 3Q17

    The Russell 2000 Growth Index climbed 6.2% versus 5.1% for the Russell 2000 Value Index—with the 5.7% gain for the Russell 2000 Index masking the strong move for value late in the quarter. Similarly, defensive sectors—with their top performer Health Care still led by biotechnology stocks so far in 2017—outpaced their cyclical counterparts in 3Q17.

    A key insight emerged when we examined the intersection of style and sector results. As the heat map with YTD results through 9/30/17 shows, the disparity between cyclical and defensive sector returns was especially pronounced within the two small-cap style indexes.


  • Royce Funds: Why Asset Allocators Should Consider International Small-Cap

    Chuck Royce - Royce Funds: Why Asset Allocators Should Consider International Small-Cap

    Asset allocators should be looking at the international small-cap asset class as maybe a two to five percent permanent allocation within a total portfolio for essentially one reason. In a sound bite, superior risk adjusted returns with very low correlation.

    Watch the video here.


  • Royce Funds Commentary: Disconnected Defensives

    Chuck Royce - Royce Funds Commentary: Disconnected Defensives

    So far in 2017, we’ve seen economically sensitive cyclicals (Consumer Discretionary, Energy, Financials, Industrials, Information Technology, and Materials) continue to underperform their defensive counterparts (Consumer Staples, Health Care, Real Estate, Telecommunication Services, and Utilities).

    Health Care has driven this year’s returns for defensive sectors (as was the case in 2015), while within the sector biotechnology stocks have led, as was also the case in 2015.


  • Royce Funds: Resisting the Madness of Crowds

    Chuck Royce - Royce Funds: Resisting The Madness Of Crowds

    Steve Lipper: You've seen a number of manias through history, most of which haven't worked out well for investors. What's your perspective on ETFs and how they're similar?

    Buzz Zaino: There are the manics and depressives of every cycle. And in the manic period, you can put enough money into the favored things and the ETF makes sense.


  • Royce Funds: How Will an Expanding Global Economy Affect U.S. Small-Caps?

    Chuck Royce - Royce Funds: How Will An Expanding Global Economy Affect U.S. Small-Caps?

    Watch the video here.

    What are you hearing about growth outside the U.S.?


  • Royce Funds Commentary: Where Is a Contrarian Finding Opportunities in a High-Priced Market?

    Chuck Royce - Royce Funds Commentary: Where Is A Contrarian Finding Opportunities In A High-Priced Market?

    The market's at an all-time high, so opportunities aren't easy to find. But they're out there. One area is technology. Now technology as defined is really really broad.So we're playing in a number of different areas.

    One area would be components, very small components. There are components like capacitors and resistors and diodes that go into absolutely everything electronic. So we own a company that makes all those components. Business there has been pretty soft for a number of years, so the company worked hard to take costs out. Their competitors have done the same. No one's added capacity. But now demand has picked up, and there's no capacity and prices are going up. So that's kind of a really cool thing. The cloud is another area.


  • American Eagle Outfitters Soars on Same-Store Sales Growth

    Chuck Royce - American Eagle Outfitters Soars On Same-Store Sales Growth

    Retailer American Eagle Outfitters Inc. (NYSE:AEO) reported its second-quarter 2017 earnings before the opening bell on Aug. 23.

    The Pittsburgh-based apparel retailer posted EPS of 19 cents, beating estimates of 16 cents per share. Quarterly revenue of $845 million surpassed expectations of $824 million and increased 3% from the prior-year quarter. In contrast, net income fell to $21.2 million, or 12 cents per share, from $41.6 million, or 23 cents per share, in the comparable quarter of 2016.


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