Research Reports

A Fee Based Business

Royce Equity Management produces Equity Management Reports exclusively for our Institutional Customers. We do this on a fee basis under various report and advice sales contracts which we maintain with our valued clients.

Fee Based Research is now the new norm for institutional and private equity clients alike. A good indicator of the value of research is the amount institutional investors are willing to pay for it. Institutional investors often pay handsomely to independent research firms for this additional work. For Royce, this amounts to the majority of our firm's revenue as institutions realizes that research is integral to making successful investment decisions. This "other research" is filling the information gap created by Wall Street. As an Independent Research Firm we, as with other boutique firms, are providing research on the stocks that may have been orphaned by Wall Street.

Our research team hunt-down strong market sector returns using our extensive quantitative research, alpha generation modeling and time tested sector analysis along with trade timing tools. Access to these innovative analytics provides our financial institution clients with uncovered unique value opportunities, urgent momentum stock picks and strategic response to market change. Increased portfolio returns and effective risk management are corner stones of our equity research and stock picking efforts.

Extensive industry knowledge and insightful analysis drive actionable investment ideas. Royce team was designed to address the unmet needs of institutional investors. Our analysts generate company-specific research, and the sector teams also work with our macro, technical, derivatives and event-driven research teams to identify investment ideas.

This approach means that independent research firms are becoming the main source of information on a majority of stocks. This is especially true in Asia and drives our ASEAN and newly invigorated Indian markets focus

From time to time, over the course of the year, the Institution research department will release to Private Equity accounts special stock picks of high success probability to materialize within a short time frame. These can be found in our highly anticipated Stock Pick Alerts


Research Philosophy

Royce Equity Management, philosophy is focused on quality growth companies. Growth companies by their nature tend to be more volatile than the overall stock market. Company profile is a fundamental assessment, over a longer-term horizon, of the business risk of the company relative to the broader Royce Asset universe. Factors assessed include: 1) durability and strength of franchise (management strength and track record, market leadership, distinctive capabilities); 2) financial profile (earnings growth rate/consistency, cash flow generation, return on investment, balance sheet, accounting); 3) other factors such as sector or industry conditions, economic environment, confidence in long-term growth prospects as well as comparisons to Established Growth and Core Growth benchmarks with the overall universe


Stock Ratings

Royce Equity Management uses a three-point system to rate stocks. Individual ratings reflect the expected performance of the stock relative to the broader market over the next 12 months. The assessment of expected performance is a function of near-term company fundamentals, industry outlook, valuation, confidence in earnings estimates, and other factors. Outperform (O) – stock expected to outperform the broader market over the next 12 months; Market Perform (M) – stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) – stock expected to underperform the broader market over the next 12 months; Not Rated (NR) – the stock is currently not rated.

The ratings and company profile assessments reflect the opinion of Royce research department and individual analysts and are subject to change at any time.

The compensation of the research analyst is based on a variety of factors, including performance of his or her stock recommendations; contributions to all of the firm's departments, including asset management, corporate finance, institutional research sales, firm profitability; and competitive factors.

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