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Royce at it again? How did I miss this?

ShostakovichShostakovich
edited April 2012 in Fund Discussions
Royce offered the Royce Special Equity Fund, run by Dreifus, who has gotten quite a bit of positive press recently. So, Royce launches the Royce Special Equity Multi-Cap Fund. Okay, that's old news.

Now, Royce also offered a high beta fund, Royce Opportunity, run by Buzz Zaino. Buzz specializes in investing in special situation and turn around stocks. Recently, Royce launched Opportunity Select. Buzz's assistant manages Opportunity Select (but Buzz is the 2nd chair).

Legg Mason really doesn't like those Royce managers sitting around managing only one fund, especially when there's so many AUM to be garnered !

Comments

  • VintageFreakVintageFreak
    Why are we so surprised? I sold my Royce funds as soon as I learnt Legg Mason owned them. They are supposed to be run autonomously.

    Err....what? No such thing. When you are owned, you are OWNED.
  • ibartman
    Recall that at the time that Royce was sold to Legg Mason, there was a comment in the press on the terms of the transaction. Specifically, as noted in Marketwatch:

    Legg Mason will pay $115 million [to Royce & Associates] at closing under terms of the deal, which it expects to immediately add to earnings. Legg Mason will also make three contingent payments based on future revenue.

    Source: http://www.marketwatch.com/story/legg-mason-to-acquire-royce-associates

    Below is link - from the Legg Mason website - that broadly summarizes the terms of Legg Mason's acquisition of Royce:

    http://ir.leggmason.com/mnahistory.aspx?iid=102761&KeyDeal=116337
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