For more than 40 years, Royce & Associates, investment adviser to The Royce Funds, has been managing micro-cap, small-cap and small/mid-cap portfolios. Chuck Royce (Trades, Portfolio) is its chief executive officer, is one of the pioneers in small-cap investing and enjoys one of the longest tenures of any active mutual fund manager.
Following are stocks the guru added to his portfolio or increased in the fourth quarter.
The guru raised his stake in Flexsteel Industries Inc. (FLXS) by 764.76% with an impact of 0.12% on the portfolio. He is the company's main shareholder among the gurus with 7.51% of outstanding shares held.
The company operates in one reportable operating segment, furniture products. The company is one of the manufacturers, importers and marketers of residential and commercial upholstered and wooden furniture products in the U.S. During the last quarter net sales increased 6.5% and adjusted net income increased 21.0% compared to the fourth quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 23.41% and ROA 7.39% that are overperforming 68% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 9 out of 10 with cash-to-debt of 0.27 that is below the industry median of 0.83.
The investor acquired a new position in Sprott Inc. (SPOXF) in which he bought 10,210,633 shares with an impact of 0.09% on the portfolio. He is the company's main shareholder among the gurus with 4.16% of outstanding shares held.
The company is an independent asset management company. Through its subsidiaries, the company provides asset management, portfolio management, wealth management, fund management and administrative and consulting services to its clients.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with negative returns of ROE -8.71% and ROA -7.73% that are underperforming 84% of the companies in the Global Asset Management industry. Financial strength has a rating of 10 out of 10 with no debt.
The guru raised his stake in Capella Education Co. (CPLA) by 56.56% with an impact of 0.08% on the portfolio.
Capella Education was founded in 1991 as a Minnesota corporation. In 1993, it established its wholly owned university subsidiary, then named The Graduate School of America, to offer doctoral and master's degrees. Third quarter revenue had an increase of 0.6% and operating margin was 13.0%, compared to 12.8% for the third quarter 2014.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE 20.91% and ROA 15.80% that are overperforming 89% of the companies in the Global Education & Training Services industry. Financial strength has a rating of 9 out of 10 with no debt.
Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 8.12% of outstanding shares; other notable guru shareholders are Joel Greenblatt (Trades, Portfolio), who holds 1.11% of outstanding shares, James Barrow (Trades, Portfolio) with 0.58% and John Hussman (Trades, Portfolio) with 0.02%.
The investor increased his stake in Scholastic Corp. (SCHI) by 13.15% with an impact of 0.05% on the portfolio.
The company publishes and distributes children's books, provides print and digital instructional materials for pre-K to grade 12 and is a producer of educational and entertaining children's media.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10, with strong returns of ROE 25.06% and ROA 16.11% that are overperforming 89% of the companies in the Global Publishing industry. Financial strength has a rating of 6 out of 10 with cash-to-debt of 17.19 that is far below industry median of 1.15.
The investor is the company’s largest shareholder among the gurus with 6.44% of outstanding shares followed by Greenblatt with 0.46%, Jeremy Grantham (Trades, Portfolio) with 0.05%, Paul Tudor Jones (Trades, Portfolio) with 0.03% and Mario Gabelli (Trades, Portfolio) with 0.02%.
Stein Mart (SMRT) saw an increase of 21.01% with an impact of 0.03% on the portfolio. Royce holds 12.45% of the company’s outstanding shares.
The company is a national retailer that offers fashion merchandise, service and presentation of a department or specialty store. During the third quarter diluted loss per share was 1 cent compared to a loss of 3 cents in 2014. Total sales decreased 1.0% while comparable store sales decreased 2.3%.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with strong returns of ROE 18.92% and ROA 5.27% that are overperforming 64% of the companies in the Global Apparel Stores industry. Financial strength has a rating of 4 out of 10 with cash-to-debt of 0.07 that is far below industry median of 0.75.
Most significant gurus holding Stein Mart shares are Barrow, who holds 0.21% of outstanding shares, Simons with 0.15% and Greenblatt with 0.02%.
The investor boosted his stake in Camden National Corp. (CAC) by 16.26% with an impact of 0.02% on the portfolio.
It provides diversified financial services. The business of the company and its subsidiaries is to attract deposits from and to extend loans to consumer, institutional, municipal, nonprofit and commercial customers.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with easy returns of ROE 10.13% and ROA 0.90% that are overperforming 53% of the companies
in the Global Banks - Regional - U.S. industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.12 that is below the industry median of 1.50.
The company's largest shareholder among the gurus is Royce with 6.96% of outstanding shares followed by Simons with 1.02% and Scott Black (Trades, Portfolio) with 0.12%.
The guru increased his stake in Hooker Furniture Corp. (HOFT) by 16.90% with an impact of 0.02% on the portfolio.
The company is a home furnishings marketing, design and logistics company offering residential casegoods and upholstery as well as domestically produced custom leather and fabric-upholstered furniture. It is organized into two operating segments: casegoods furniture and upholstered furniture. In the last month the company acquired an agreement to purchase the business of Home Meridian International Inc. Third quarter consolidated net sales went up 3.4%, and net income increased 44.5%.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong returns of ROE 11.20% and ROA 9.52% that are overperforming 61% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 7 out of 10 with no debt.
NWQ Managers (Trades, Portfolio) is the company's largest shareholder among the gurus with 13.85% of outstanding shares followed by Royce with 7.72% and Simons with 2.39%.
The investor raised his stake in National Bankshares Inc. (NKSH) by 36.63% with an impact of 0.12% on the portfolio.
The company conducts its operations through its wholly owned community bank subsidiary, the National Bank of Blacksburg. It also owns National Bankshares Financial Services Inc., which does business as National Bankshares Insurance Services and National Bankshares Investment Services.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with strong returns of ROE 23.41% and ROA 7.39% that are overperforming 62% of the companies in the Global Banks - Regional - U.S. industry. Financial strength has a rating of 7 out of 10 with no debt.
The company's largest shareholder among the gurus is Royce with 5.58% of outstanding shares followed by Simons with 0.9%.
