Video Reports

Embed this video

Copy Code

Link to this video

Get LinkEmbedLicenseRecommend (-)Print
Bookmark and Share

By Karin Anderson | 10-21-2009 07:15 AM

George: Still a Lot of Upside

Whitney George, manager of Analyst Pick Royce Premier, on the opportunities remaining in the fund's industrial and materials positions.

Karin Anderson: Hi. This is Karin Anderson, mutual fund analyst at Morningstar, and I'm here today with Whitney George, portfolio manager and co-CIO at the Royce Funds. Hi, Whitney. How are you today?

W. Whitney George: Good, Karin.

Anderson: Good. Thanks for being here.

George: Thanks for coming.

Anderson: OK. As co-CIO, you work with a lot of the portfolio managers. You manage several funds with them and you have value managers and growth managers here, across the spectrum. What aspects of the strategies would you say are common across the board?

George: We always struggle with value versus growth manager thing. I think it would be hard to find any manager that said that they weren't buying value, so we view it all as one common discipline that we all share, which is a focus on small companies that starts with a balance sheet and looks at absolute valuations as opposed to relative valuations, as a standard, and takes a long-term approach to those investments.

We invest with a three- to five-year horizon. And across all of the strategies, I think you would find that would apply. Now the level of valuation risk that one might tolerate might be different in a growth-ier, more aggressive product.

The level of quality requirement might be higher in a more selective product like Premier, as opposed to a more broadly focused portfolio. So those are the variations on the main core theme, which is small companies, great balance sheets, preferably high returns on capital, with a long-term investment horizon.

Read Full Transcript
{0}-{1} of {2} Comments
{0}-{1} of {2} Comment
  • This post has been reported.
  • Comment removed for violation of Terms of Use ({0})
    Please create a username to comment on this article