Miles Lewis on the State of Small-Cap in Morningstar—Royce
article 06-23-2026

Media Mention

Miles Lewis on the State of Small-Cap in Morningstar

Miles participated in a panel during last week’s Morningstar Investment Conference to discuss small-cap performance with analyst David Carey.

TELL US
WHAT YOU
THINK

PM Miles Lewis participated in a panel during last week’s Morningstar Investment Conference, where analyst David Carey sat down with him and two other small- and mid-cap managers to check in on what’s been driving performance in small-cap and learn about some of their favorite holdings. The highlights appeared on Morningstar.com.

Markets Brief: Where Top Managers Are Finding Opportunity in a Concentrated Small-Cap Market | Morningstar

Miles talked about the relatively narrow state of small-cap success so far in 2026, noting that “The top 20 stocks in the Russell 2000 (just 1%) have generated 40% of the index’s returns so far this year. The top 200 stocks have driven almost 90% of the returns, so that means 1,800 stocks out there are doing very little.” However, he is constructive on the asset class, saying that small-caps “can grow 20%, 30%, 40% with incredible incremental returns and do that for five or 10 or 15 years. I just think the opportunity set is much more compelling on average over time.”

Learn more about Miles Lewis.

Important Disclosure Information

Mr. Lewis’s thoughts and opinions concerning the stock market are solely his own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

Insights & News

Share:

Subscribe:

Sign Up

Follow: