Small-cap stocks look poised for a rebound in 2012 after underperforming last year, Chuck Royce, president and chief investment officer for The Royce Funds, said in his quarterly commentary.
Recent research has shown that stocks of high-quality small companies are cheap right now, particularly when compared to the stocks of their larger corporate cousins, Royce said. Small-cap stocks hit bottom in October 2011, he said. While volatility will remain with us in 2012, the overall small-cap market trend will be upward, Royce said.
To read his full commentary, click here.
The Royce Low-Priced Stock Fund is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers. The fund lost 14.5 percent in 2011 vs. the Russell 2000 Index loss of 4.1 percent. Over the long-term, however, the fund has beaten the index over the past three-, five-, 10- and 15-year periods.
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