Insights from the Latest 13F Filing Highlight Key Portfolio Adjustments

Chuck Royce (Trades, Portfolio), a renowned figure in small-cap investing, recently disclosed his investment activities for the first quarter of 2024 through the latest 13F filing. As the portfolio manager of Royce Pennsylvania Mutual Fund since 1972, Royce has built a reputation for his meticulous investment strategy focused on small to mid-sized companies with robust financials and promising futures. Holding a bachelor's degree from Brown University and an MBA from Columbia University, his investment philosophy centers on acquiring stocks at prices less than their estimated enterprise value.

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Summary of New Buys

During the first quarter, Chuck Royce (Trades, Portfolio) expanded his portfolio by adding 84 new stocks. Noteworthy new acquisitions include:

• Exponent Inc (NASDAQ:EXPO), purchasing 212,046 shares valued at approximately $17.53 million, making up 0.16% of the portfolio.

• WNS (Holdings) Ltd (NYSE:WNS), with 222,660 shares, representing about 0.1% of the portfolio and valued at $11.25 million.

• Helmerich & Payne Inc (NYSE:HP), acquiring 248,566 shares, which constitute 0.09% of the portfolio, totaling around $10.45 million.

Key Position Increases

Royce also significantly increased his stakes in several companies, including:

• Haemonetics Corp (NYSE:HAE), where he added 300,259 shares, bringing his total to 1,266,614 shares. This increase had a 0.23% impact on his portfolio, with the total value reaching approximately $108.11 million.

• Shutterstock Inc (NYSE:SSTK), with an additional 517,378 shares, resulting in a total of 624,037 shares and valued at about $28.59 million.

Summary of Sold Out Positions

In Q1 2024, Chuck Royce (Trades, Portfolio) exited 73 positions, including:

• Fair Isaac Corp (NYSE:FICO), selling all 21,841 shares, impacting the portfolio by -0.23%.

• WNS (Holdings) Ltd (NYSE:WNS), liquidating all 169,992 shares, which had a -0.1% impact on the portfolio.

Key Position Reductions

Significant reductions were made in several holdings, notably:

• Haynes International Inc (NASDAQ:HAYN), where Royce cut his position by 508,458 shares, a 75.97% decrease, affecting the portfolio by -0.27%. The stock's average trading price was $57.61 during the quarter.

• LCI Industries Inc (NYSE:LCII), reducing his stake by 167,321 shares, a 36.1% decrease, with a -0.19% portfolio impact. The stock traded at an average price of $117.65 during the quarter.

Portfolio Overview

As of the first quarter of 2024, Chuck Royce (Trades, Portfolio)'s portfolio included 873 stocks. Top holdings were 1.32% in Air Lease Corp (NYSE:AL), 1.09% in Arcosa Inc (NYSE:ACA), and 1.09% in MKS Instruments Inc (NASDAQ:MKSI). The portfolio is well-diversified across all 11 industries, with significant concentrations in Industrials, Technology, and Financial Services.