Royce Micro-Cap Trust reached a 52 Week low at 9.11
M
When valuing a business development company(BDC) they use book value as an NAV. BDC's are like mutual funds in that they invest in a portfolio of companies. If you value your closed end fund that way you can see how RMT is still a very good value. Book value is $404M while the market cap is $276M so while the fund sells at a nice 14% discount to NAV it sells at an even bigger 42% discount to book value.
Historically this is not an investment for capital appreciation unless you are adept enough to buy on dips and sell on peaks. As a buy and hold investment all your return will come from the distribution. Because micro cap stocks have under performed over the last 5 years and because of these discounts RMT is a great buy now but also a solid core position for any closed end portfolio.
M
With the continued popularity of this market segment its possible that this fund might go premium. Currently it trades at bout a 15 % discount to NAV.
Jennifer, NEHAL, Shogunshiva, Digitcipher, Jay, @1000% and other friends, where are you guys!! Happy holidays. wishing you all the best for 2021 💐 🌹 🌸 🏵 🌼 💐
$RMT $BFT $QS $GOEV $NBAC $FSR $PLUG
M
Anybody put off that the current yield is below 5.5%? Historically the yield has been around 8% which is a major selling point for funds like this.
The reason is the good performance in the stock price and less leverage. RMT is now selling close to book value. Also the Royce funds have much less leverage than in the past. Right now RMT is leveraged at 6% I would love to see that number double.
RMT is a special fund because no fund in the CEF universe invests in the smallest companies. RVT is the only other true small cap CEF. To have an aggressive micro cap fund with high yields is very attractive and the historical performance has been good.
Y
RMT is up 5.06% to 9.97
M
Fund still looks like a solid buy. Yield is now up to 7% and the discount is 12%. Price to book is just.85.
Given it is the only fund in this space, only one of 2 real small cap CEFs it should sell around NAV. Solid record of performance and distribution.
j
top 10 holdings?
M
FYI both RMT and RVT have outperformed the Russell 2000 in the last month. Both are up about 24% since the election and vsmax which we own in retirement accounts is up about 15%.
The only issue is the yield. Historically the yield for these funds is 8-8.5% and it is now just 6% in part due to the price appreciation.
I really recommend both RMT and RVT and if you do not absolutely need the income reinvest those dividends for a solid long term performance. Remember these are the only 2 true small cap closed end funds. FUND is a mid cap fund and ASG is a multicap with a mid cap average but these 2 Royce funds are true well managed small caps.
m
got in here - I know many are saying the small-cap run is over, but I like the fund (along with some other CEF's) so I went ahead and picked up some shares...
R
This looks like a good call.
Y
Royce Micro-Cap Trust reached a 52 Week high at 9.80
Y
Royce Micro-Cap Trust reached a 52 Week high at 9.44
Y
RMT is up 6.00% to 5.37
W
RVT looks very good, here. Low p.e., good distributions, good discount. It holds the type of stocks larger corporations in their fields like to buy out.
Y
RMT reached a new 52 Week Low at $8.32
Y
RMT reached a 52 Week low at $7.32
Y
RMT reached a 52 Week low at $7.45
Y
RMT reached a 52 Week low at $7.93
Y
Royce Micro-Cap Trust reached a 52 Week high at 9.30
Historically this is not an investment for capital appreciation unless you are adept enough to buy on dips and sell on peaks. As a buy and hold investment all your return will come from the distribution. Because micro cap stocks have under performed over the last 5 years and because of these discounts RMT is a great buy now but also a solid core position for any closed end portfolio.
$RMT $BFT $QS $GOEV $NBAC $FSR $PLUG
The reason is the good performance in the stock price and less leverage. RMT is now selling close to book value. Also the Royce funds have much less leverage than in the past. Right now RMT is leveraged at 6% I would love to see that number double.
RMT is a special fund because no fund in the CEF universe invests in the smallest companies. RVT is the only other true small cap CEF. To have an aggressive micro cap fund with high yields is very attractive and the historical performance has been good.
Given it is the only fund in this space, only one of 2 real small cap CEFs it should sell around NAV. Solid record of performance and distribution.
The only issue is the yield. Historically the yield for these funds is 8-8.5% and it is now just 6% in part due to the price appreciation.
I really recommend both RMT and RVT and if you do not absolutely need the income reinvest those dividends for a solid long term performance. Remember these are the only 2 true small cap closed end funds. FUND is a mid cap fund and ASG is a multicap with a mid cap average but these 2 Royce funds are true well managed small caps.
fields like to buy out.