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Royce Small-Cap Value Fund FY 2025 Commentary

Seeking Alpha
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⚡ Quantum Brief
The Royce Small-Cap Value Fund gained 6.7% in 2025, underperforming its Russell 2000 Value Index benchmark, which rose 12.6% during the same period. Despite trailing annually, the fund outperformed its benchmark over five years and since its 2001 inception, demonstrating long-term resilience. A 2025 small-cap rally favored speculative, low-quality stocks, leaving the fund’s conservative, high-quality holdings behind in the short term. The fund maintains its focus on conservatively capitalized businesses, prioritizing stability over short-term market trends. The commentary underscores the fund’s commitment to value investing principles amid volatile market conditions.
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The Royce Funds120 FollowersFollow5ShareSavePlay(13min)CommentsSummaryRoyce Small-Cap Value Fund advanced 6.7% in 2025 versus a 12.6% gain for its benchmark, the Russell 2000 Value Index, for the same period.The Fund outperformed its benchmark for the 5-year, and since inception (6/14/01) periods ended 12/31/25.The rally that boosted small-caps off the April lows was dominated by low-quality and more speculative companies, and left the kind of conservatively capitalized, quality businesses we focus on trailing. syahrir maulana/iStock via Getty Images Fund Performance Royce Small-Cap Value Fund advanced 6.7% in 2025 versus a 12.6% gain for its benchmark, the Russell 2000 Value Index, for the same period. The Fund outperformed its benchmark for the 5-year, andThis article was written byThe Royce Funds120 FollowersFollowThe Royce Funds is a small-cap specialist with unparalleled knowledge and experience, offering distinct investment approaches to meet a variety of investors’ goals.

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