Royce OTC Micro (NYSE:RMT) is a closed-end management investment company that seeks long-term capital appreciation with a secondary focus on current income by investing primarily in micro-capitalization companies. The trust pursues opportunities in businesses that are typically underfollowed by institutional investors and that exhibit strong growth potential, aiming to capitalize on the inefficiencies often found in the micro-cap market segment.
The fund employs a bottom-up, value-oriented investment approach, conducting rigorous fundamental analysis to identify firms trading at discounts to intrinsic value. Portfolio holdings span a diverse range of sectors, including industrials, technology, healthcare and consumer services, with the trust’s managers looking for companies that demonstrate solid business models, strong balance sheets and sustainable earnings growth prospects.
Established in 2007 and reorganized as a Delaware statutory trust in 2019, Royce OTC Micro is advised by Royce & Associates, L.P., an investment firm with a longstanding focus on small-capitalization equities. The portfolio team is led by seasoned micro-cap specialists including Edward F. O’Dell and Kenneth N. Shapiro, whose combined experience in small-company research supports the trust’s active portfolio management and disciplined risk oversight.
Headquartered in New York, Royce & Associates leverages its deep research infrastructure to maintain direct engagement with company management teams. Royce OTC Micro’s board of directors provides governance and independent oversight, while the trust’s geographic emphasis remains predominantly on U.S.-based micro-capitalization issuers, with selective exposure to international micro-cap opportunities that meet the fund’s stringent valuation and quality criteria.
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