This Leaner Fund Leans
A past Morningstar Manager of the Year oversees this portfolio, which has fewer holdings than some of its peers but asymmetric sector weightings.
Karin Anderson: The fund we're talking about today is Royce Special Equity Multi-Cap. It was launched in December 2010 and is managed by Charlie Dreifus of Royce & Associates. He has been running actually a small-cap fund with a very similar name, Royce Special Equity, since 1998.
The process for the large-cap fund is the same. Dreifus is looking for conservatively run firms. Many of them have long histories of paying dividends, and he looks to buy them when they're trading at very large discounts to intrinsic value. He's looking for a solid margin of safety in every holding he owns. He only owns about 30 stocks and is willing to forgo entire market sectors if those companies don't meet his criteria. So you have a very asymmetric portfolio in terms of its sector weightings.
Karin Anderson has a position in the following securities mentioned above: RSEFX. Find out about Morningstar’s editorial policies.
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