Royce & Associates has just announced a bold rebranding strategy. It "better describes the breadth of the firm's business and the importance it places on the spirit of partnership with which the company has always conducted itself ... it better represent[s] to all of our constituents who we are now as a firm ... it better represent[s] the range of our strategies." With a boldness surely inspired by their be-bowtied, soon-to-be-octagenarian founder, Royce and Associates has become ...
Royce Investment Partners!
Ta da!
Uhhh ... R.I.P.? Was that an inspired choice for a firm who's seen assets decline 17% in the past 12 months and 75% in the decade?
Here's the 12 year correlation between their flagship Pennsylvania Mutual (PENNX) fund and the 11 next-oldest funds in their lineup:
0.99%
0.95
0.98
0.96
0.99
0.98
0.96
0.96
0.94
0.95
0.95
And that's after liquidating much of the sea of clones they launched after Legg Mason bought them.
I got a heads up about the change from a reader, Brett Schneider, who concludes, "The joke writes itself. RIP."
David
Comments
https://www.royceinvest.com/news/2019/4Q19/royce-associates-lp-rebrands-as-royce-investment-partners
The LM acquisition was not a plus for shareholders, nor was the jettison of Whitney George.
The re-branding downplays Chuck's role ever so slightly (it's not Chuck Royce & his merry band of fund creators), while still keeping the Royce name in play while it still has some currency.
Alas, it's tougher and tougher to find true fiduciaries. Royce never really was. The loss of AUM pleases me, in the sense that it indicates that the market of middle class investors has a voice, although I suspect much of this may be driven by the rise of passive / index investing.
OJ
Super busy at the day job; barely have time for bit of fun like posting here. Royce is easy fare, however, and a personal cause of mine, because their flim-flam is such easy pickings.
Best wishes to you and all here, whatever your traditions this time of year.