Dividends a Powerful Theme for the Future
Royce's Charlie Dreifus notes that investors will likely continue seeking out stocks that look like growth bonds, and large caps are where they might have better luck.
Charlie Dreifus is a portfolio manager and principal for Royce and Associates and past winner of Morningstar's Domestic-Stock Fund Manager of the Year award. He recently spoke with us about where on the market-cap spectrum he is seeing opportunities for Royce Special Equity (RYSEX) and Royce Special Equity Multi-Cap (RSEMX). He offered his take on his portfolio positioning in the health-care and broad consumer cyclical sectors as well as what he sees as the largest risks to his funds. Dreifus also discussed his keen focus on company dividends.
1. Where on the market-cap spectrum are you finding opportunities today?
I manage two portfolios, Royce Special Equity, which focuses primarily on small-cap and micro-cap companies, and Royce Special Equity Multi-Cap, which is a newer product that invests mostly in companies with market caps more than $5 billion.
Morningstar.com does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.