The founder of Royce, Charles M. Royce, enjoys one of the longest tenures of any active mutual fund manager, still serving as its president and chief investment officer. A Legg Mason, Inc. subsidiary since 2001, Royce strives to build small-cap value portfolios that provide solid absolute performance with a focus on reducing volatility.
Royce employs a bottom-up, stock-picking approach to choosing portfolio holdings. Its goal is to identify promising companies that have strong balance sheets, high internal rates of return, and excess cash flow, in an attempt to understand the business and a company's ability to withstand economic adversity - factors that are significant measures of a company's financial health. Royce will generally sell a position when a company has reached its estimate of its value.
The firm likes its companies to demonstrate strong historical track records as businesses and to show potential for successful futures. Interviews with senior management help in making these assessments, as do interviews with customers, suppliers and competitors.
Royce & Associates, LLC 1414 Avenue of Americas New York, NY 10019
