The Royce Low-Priced Stock Fund declined by 23.3 percent in the third quarter and is now down 20.8 percent for the year to date, Royce reported this week. The decline was slightly steeper than the benchmark Russell 2000 index drop of 21.8 percent for the quarter. The index was down an identical 20.8 percent for the year. Over the long-term, however, the fund has outperformed the index for three-, five-, 10- and 15-year periods.
In his commentary, Royce Chief Investment Officer Chuck Royce urged investors to be patient and take a long-term view. "I do not think we're in a financial crisis currently, but I would describe what's happening as more of an existential crisis -- a crisis of leadership and political will that has drained people's confidence in our ability to make the necessary changes that would improve our economy," he wrote.
He noted that many U.S. companies have navigated the financial crisis very well, are financially strong and are well-positioned to take advantage of growth at home and abroad once the economy rebounds. "These are the kinds of companies that we're buying as we look at the long term," he wrote.
In his commentary, fund manager Whitney George wrote that, "I'm more and more convinced that we don't need good news for the market to go up -- we only need relief from the onslaught of bad news."
The Royce Low-Priced Stock fund is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.
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