Small Cap Stock Guru Chuck Royce Launches 3 New Funds
Small cap stocks have more than come into their own in the three plus decades since the legendary small cap guru Chuck Royce revealed their potential to the world of the investing. According to Royce, today there are more than 3,100 U.S. companies identified as micro-cap with market values of up to $500 million; more than 1,100 small-cap with market values between $500 million and $2.5 billion.
That may seem like a lot, but when you add in foreign small to micro cap company stocks the market inflates to more than 15,000 companies in developed nations. As a result of the growing market and more importantly, the exceptional opportunities that may lay ahead, Royce decided to launch three new international funds.
Royce’s believes that small investors have an edge with small cap stocks because, “The small-cap asset class is highly inefficient and therefore investors of any size have return advantage potential. The sheer size of the universe, both here and abroad, lends itself to significant return potential. The higher level of volatility that characterizes the small-cap universe is also a benefit because it gives investors opportunities on both the buy and the sell side”.
