Making the Case for Small Caps: Francis Gannon on Yahoo Finance—Royce
article 10-06-2021

Making the Case for Small Caps: Francis Gannon on Yahoo Finance

Co-CIO Francis Gannon makes his case for why small caps may outperform large caps in 4Q21 on Yahoo Finance.

TELL US
WHAT YOU
THINK

Co-CIO Francis Gannon was recently featured on Yahoo Finance explaining why history suggests small caps may benefit from a raising rate environment, the macro/micro disconnect, and more.

Watch the video here.

In the interview, hosted by Adam Shapiro and Seana Smith, Francis stated that the small cap value index appears cheaper than it’s been in the last 20 years. In addition, he believes small caps should bode well in 4Q21 as the asset class has been cheaper than their large cap peers.

“History shows us that in a rising rate environment, small caps do better than large caps. In fact, their one-year return is typically above the historical return of small caps”

Watch the video here.

Learn more about Francis Gannon here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of October 4, 2021 and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. All indexes referenced are unmanaged and capitalization-weighted. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The S&P 500 is an index of U.S. large-cap stocks selected by Standard & Poor’s based on market size, liquidity, and industry grouping, among other factors, and includes reinvested dividends. The Nasdaq100 is an unmanaged, capitalization-weighted index. It measures the performance of the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

Share:

Subscribe:

Sign Up

Follow: