Royce Smaller-Companies Growth Fund FY 2025 Commentary

The Royce Funds120 FollowersFollow5ShareSavePlay(13min)CommentsSummaryThe Fund advanced 19.3% in 2025, beating both Russell 2000 Growth Index, which was up 13.0%, and the Russell 2000 Index, which gained 12.8%, for the same period.Palvella’s shares appreciated significantly in 2025 as investors grew more confident in the company’s pipeline following a grant from the FDA, patent wins, expanded indications and programs.ACV Auctions stock underperformed in 2025 due to a deceleration of organic growth, increased competition, and a continued weak used car auction environment.Our positioning continues to reflect our focus on growing companies in growth industries while managing positions that have become overvalued in the short term.Despite much noise and recent volatility, we are enthusiastic about the potential of small-caps to power ahead over the next several years. Maximusnd/iStock via Getty Images Fund Performance In a good year for small-cap growth stocks, Royce Smaller-Companies Growth Fund (RYVPX) made an excellent showing on both an absolute and relative basis. The Fund advanced 19.3% in 2025, beating both Russell 2000 GrowthThis 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.