Lower-than-expected sales helped GameStop’s shares fall 20% at the close of trading on January 14, 2014, the biggest decline since December 2002. Portfolio Manager and Principal Jay Kaplan, however, still has confidence in the company’s long-term prospects.

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“They’ve always been very forthright with us—they have a very long-term view, a long-term strategy,” said Jay in his January 15, 2014 interview with Liz Claman on Fox Business News’ “Countdown to the Closing Bell.”

“[GameStop’s] customers have probably run out of money, for now, but they’re going to want to buy games to play on the new consoles,” Jay added. Learn more about Jay’s thoughts on GameStop and our long-term, contrarian investment approach.

Jay also talked about the types of companies we want to invest in and two names that he currently likes.

Jay Kaplan has 25 years of investment experience and manages Royce Total Return Fund and Royce Dividend Value Fund (with Chuck Royce), Royce Value Fund, and Royce Capital Fund – Small-Cap Portfolio. He also serves as the assistant portfolio manager—along with Lauren Romeo—of Royce Pennsylvania Mutual Fund.

Important Disclosure Information

Jay Kaplan is a portfolio manager of Royce & Associates, LLC, investment advisor to The Royce Funds. He is the portfolio manager of Royce Total Return Fund (RTR), Royce Value Fund (RVV), Royce Dividend Value Fund (RDV), and Royce Capital Fund – Small-Cap Portfolio (RCS). He also assists on Royce Pennsylvania Mutual Fund (PMF). The thoughts expressed in the video are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money.

Percentage of Fund Holdings as of 12/31/13 (%)

RTR RVV RDV RCS PMF
GameStop Corporation Cl. A 0.65 2.61 0.65 0.45 0.37

There can be no assurance that any of the securities mentioned in this piece will be included in these portfolios in the future.