Royce: Low-Priced Stock Fund Will Regain Its Footing

The typically volatile Royce Low-Priced Stock Fund, which invests in small companies, has had a rough 12 months. Although it has gained 11.5 percent this year through May 31, about a point less than the benchmark Russell 2000 Index, it trails the index by 10 points over the past 12 months.

Fund manager Whitney George addresses this underperformance in a Q&A commentary on the Royce website. "We feel very good about the portfolio," George said. "But we also understand why investors may be frustrated. We have significant investments of our own in the fund, so we're feeling the pain along with everyone else."  Some of the fund's holdings are currently out of favor but have solid long-term prospects, George said.

To read the full commentary, click here.

Over the past three-, five-, 10- and 15-year periods Royce Low-Priced Stock has outperformed the Russell 2000.

The fund is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.