Jay Kaplan’s 2015 Outlook for Small-Cap Stocks on Asset.tv by Royce Funds

Courtesy of Asset.tv. All Rights Reserved.

On December 16, 2014, Portfolio Manager Jay Kaplan was one of three panelists on Asset.tv’s “Outlook 2015” Masterclass.

“There are two issues to think about,” said Jay. “One is interest rates, one is economic growth,” he added.

Jay, joined by Senior Vice President and Head of Alpha Investment Research at Segal Rogerscasey Alan Kosan and Managing Director and Global Head of Investment Research at Prudential Real Estate Investors Peter Hayes, discussed:

  • the prospects for small-cap stocks;
  • the performance disparity between small-cap and large-cap;
  • how an increase in interest rates may affect his portfolios;
  • what he’s been seeing in the retail space;
  • areas of the market he is emphasizing and avoiding;
  • and his outlook for active versus passive approaches in the small-cap universe.

“I focus company by company and stock by stock,” said Jay. “Every day I’m taking money off the table or I chuck things that become overvalued—I’m trying to recycle that cash back into undervalued situations where I can try and do maybe a little arbitrage.”

Jay Kaplan has 26 years of investment experience. He is the portfolio manager of Royce Dividend Value Fund and Royce Total Return 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, Royce’s flagship.

Jay Kaplan's 2015 Outlook for Small-Cap Stocks on Asset.tv