Jay Kaplan Makes a Case for Small-Caps on Fox Business by Royce Funds
On December 22, 2014, Portfolio Manager and Principal Jay Kaplan – joined by Lido Isle Advisors CEO Jason Rotman-was a guest on Fox Business Network’ “Countdown to the Closing Bell” to discuss the widening relative performance gap between small-cap and large-cap so far in 2014 and the prospects for small-cap stocks in the year ahead.
“It’s been a tough year for small-caps, but I think one of the things to consider is large-caps are going to have a pretty big headwind next year,” said Jay, who added that large-cap exposure to markets overseas may put pressure on returns.
“On the other side, small-caps were having a big tax cut for consumers now from lower energy prices, and a lot of small-caps have a lot of consumer exposure, domestic exposure, so all of that bodes pretty well.”
Jay also provided three names that he currently likes, including a few dividend payers.
“There are actually dividends in small-caps,” said Jay. “People don’t think about that.”
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.
