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Fund Spy

How a Fund Boutique Grew Without Losing Its Soul

Royce has gotten bigger without giving up its autonomy.

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Over the course of nearly four decades, Royce & Associates has demonstrated sound leadership in small-cap investing. The firm nurtures an atmosphere that encourages individuality and collaboration at the same time--while also growing the firm in terms of assets, funds, and portfolio managers.

Since 1972, when Chuck Royce first began managing flagship  Royce Pennsylvania Mutual Fund (PENNX), Royce & Associates has grown to offer 26 funds--many of them beyond the firm's small-cap core--and employs 38 investment professionals. Royce managed $29 billion in assets on Dec. 31, 2009.

The Royce team has been successful at hiring midcareer professionals, and the average investment-industry experience on the team is 24 years. The firm's most-senior managers, including Chuck Royce, Whitney George, Charlie Dreifus, and Buzz Zaino, have managed funds for 38 years on average--20 of them at Royce. The newer managers have more than 15 years of experience.

Karin Anderson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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