Royce Small-Cap Opportunity Fund

Overview

The Royce Small-Cap Opportunity Fund is a mutual fund that primarily invests in small-cap and micro-cap companies, aiming to capitalize on undervalued securities with potential for growth. The fund employs an opportunistic investment approach, targeting companies categorized into themes such as Turnarounds, Unrecognized Asset Values, Undervalued Growth, and Interrupted Earnings. It seeks to identify catalysts for future earnings growth, including new management, favorable business cycles, product innovation, and margin improvement. The fund has a history of outperforming its benchmark over various time periods, demonstrating its effectiveness in achieving long-term capital appreciation. As of December 31, 2025, the fund's net assets were approximately $1.08 billion, with an average market capitalization of $1.56 billion. The fund is managed by Royce & Associates, LP, a firm specializing in small-cap investments since 1972. The portfolio management team includes lead portfolio manager Brendan Hartman, who has been with the fund since 2021, and assistant portfolio manager Kavitha Venkatraman, who joined in 2021. The fund's investment strategy focuses on identifying small-cap companies with attractive valuations and potential catalysts for growth, aiming to provide investors with opportunities in the small-cap market segment. The fund's expense ratio is 1.49% after fee waivers and/or expense reimbursements, and it has a minimum investment requirement of $2,000, open to new investors. The fund's performance and investment strategy are detailed on its official website, providing investors with comprehensive information about its objectives and holdings.