Charles M. Royce assumed investment management of Pennsylvania Mutual Fund when he purchased Quest Advisory Corp. in 1972.
Royce, who has been described as a "small-company stock pioneer" by American business journalist Consuelo Mack,[2] enjoys one of the longest tenures of any active mutual fund manager.
After assuming management of Pennsylvania Mutual Fund, Royce began to shift his focus toward small-cap stocks that he believed were able to generate free cash flow and better survive down-market periods.
This emphasis on downside protection would become one of the hallmarks of the firm's investment approach.
On October 1, 2001, Royce became a wholly owned, independent subsidiary of Legg Mason, Inc.[4] In the 2000s, the company began to introduce global and international small-cap mutual fund portfolios.