For this episode of Planet MicroCap Podcast, I spoke with Bill Hench, Portfolio Manager at Royce Funds. For more than 40 years, Royce & Associates, investment advisor to The Royce Funds, has been managing MicroCap, Small-Cap and small/midcap portfolios. Bill and his partner, Buzz Zaino, run the MicroCap Opportunity Fund and the Opportunity Fund. I wanted to speak with Bill to get his perspective on MicroCap investing. A couple things stood out in our interview, including: Bill and Buzz’s four themes for portfolio construction, his definition of “cheap” stocks, but I thought Bill’s point about diversification vs. concentration as a MicroCap investor was also intriguing. He brought this point up multiple times throughout our interview. The goal for this episode is to learn about Bill’s approach to portfolio construction, advice for new MicroCap investors, his stance on diversification vs. concentration, and much more! In this episode, Bill and I discuss the following topics: - Bill's background - What got Bill into investing in MicroCap stocks - Describes the Opportunity Fund and the Micro-Cap Opportunity Fund at Royce - Diversified vs. concentrated portfolio - How Bill defines a "cheap" stock - Asset plays, turnarounds, undervalued growth stories and interrupted earnings are Bill's four themes for portfolio construction: why focus on these themes? - What does a “Deep Value Strategy” mean? - In one of Bill's videos, he mentions that a third of the portfolio at any given time includes turnarounds and “broken IPOs”, how do you assess companies that you think fit this mold for potential investment? - “Exploiting Market Inefficiencies” is a key phrase that many MicroCap investors/funds find attractive about MicroCap investing: what the phrase means to Bill - Does Bill ever overweigh one sector or another and conversely do you avoid any sectors in their entirety? - An experience(s) that shaped his MicroCap investing strategy - Bill's advice for new MicroCap investors For more information about Bill Hench and The Royce Funds, please visit: https://www.roycefunds.com/ Follow the Planet MicroCap Podcast: Twitter: https://twitter.com/PlanetMicroCap Robert Kraft on Twitter: https://twitter.com/BobbyKKraft Subscribe to the Planet MicroCap Podcast: iTunes: https://apple.co/2xdaQcY Stitcher: https://bit.ly/2YjL9mQ Player.FM: https://player.fm/series/2501033 Subscribe NOW to SNN Network: http://bit.ly/1Q5Yfym New videos are added almost every day to the SNN Network channel sharing fascinating stories and companies from the Small-, Micro-, and Nano-Cap stock market. Get more Stock News Now: Website: http://stocknewsnow.com/ Follow Stock News Now: https://twitter.com/StockNewsNow Like Stock News Now: https://www.facebook.com/SnnInc/ Follow Stock News Now on LinkedIn: https://www.linkedin.com/company/stoc... Follow Stock News Now on StockTwits: http://stocktwits.com/StockNewsNow StockNewsNow.com, The Official MicroCap News Source, is a microcap financial news portal that features news and insights from the microcap and emerging growth financial community. StockNewsNow.com is a multimedia destination hub for information about microcap and emerging growth public and private companies, market events, news, bulletins, stock quotes, expert commentary and company profiles that feature user-generated video, SNN-produced video like SNNLive CEO video interviews, Wall Street Views, SNNLive Newscasts, as well as, MicroCap Review magazine articles, guest submissions, and the latest news and headlines from MicroCap companies. Users can engage directly and share the information provided through social media. Follow the companies YOU want to know more about; read and watch content from YOUR favorite microcap, emerging growth financial experts; register to attend financial conferences of YOUR choosing; find microcap and emerging growth financial professionals that YOU may be looking for - all here on StockNewsNow.com. Any information provided by the SNN Network YouTube channel is for general information only and must never be considered a substitute for professional advice. SNN Network makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on our channel. SNN Network may at any time and in our sole and absolute discretion remove, change or replace the information available on our channel, including comments. SNN Network is not liable for any direct, incidental, consequential, indirect or punitive damages arising out of access to or use of any content available on our channel, regardless of the accuracy or completeness of any such content. SNN Network disclaims any control over, relationship with, or endorsement of views expressed by other YouTube users. Any links to other websites are provided as a convenience and SNN Network encourages you to read the privacy statements and terms of use of our site and any third-party websites.