FormFactor Inc Sees Significant Reduction in Chuck Royce's Portfolio

This article first appeared on GuruFocus.

Exploring the Strategic Moves of a Small-Cap Investment Pioneer

Chuck Royce (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2026, providing insights into his investment moves during this period. Charles M. Royce is known as one of the pioneers of small-cap investing. He has been the portfolio manager for Royce Pennsylvania Mutual Fund since 1972. Royce holds a bachelor's degree from Brown University and a Master of Business Administration from Columbia University. The firm invests in smaller companies, primarily those with market capitalizations up to $5 billion, although some of its Funds may invest in companies with market capitalizations up to $10 billion. The value approaches that portfolio managers use share one significant trait: They are looking for terrific stocks trading for less than the estimate of the company's worth as a business - its enterprise value. "Essentially, we are interested in three thingsa strong balance sheet, a record of success as a business, and the potential for a profitable future." - Charles M. Royce

Warning! GuruFocus has detected 8 Warning Signs with ACA. Is ACA fairly valued? Test your thesis with our free DCF calculator.

Summary of New Buy

Chuck Royce (Trades, Portfolio) added a total of 56 stocks, among them:

The most significant addition was DigitalOcean Holdings Inc (NYSE:DOCN), with 224,412 shares, accounting for 0.19% of the portfolio and a total value of $19.25 million. The second largest addition to the portfolio was FactSet Research Systems Inc (NYSE:FDS), consisting of 65,139 shares, representing approximately 0.14% of the portfolio, with a total value of $14.13 million. The third largest addition was Azenta Inc (NASDAQ:AZTA), with 523,308 shares, accounting for 0.11% of the portfolio and a total value of $11.06 million.

Key Position Increases

Chuck Royce (Trades, Portfolio) also increased stakes in a total of 354 stocks, among them:

The most notable increase was Exponent Inc (NASDAQ:EXPO), with an additional 492,764 shares, bringing the total to 1,144,873 shares. This adjustment represents a significant 75.56% increase in share count, a 0.32% impact on the current portfolio, with a total value of $74.70 million. The second largest increase was Andersen Group Inc (NYSE:ANDG), with an additional 639,396 shares, bringing the total to 1,408,715. This adjustment represents a significant 83.11% increase in share count, with a total value of $38.32 million.

Summary of Sold Out

Chuck Royce (Trades, Portfolio) completely exited 43 of the holdings in the first quarter of 2026, as detailed below:

Story Continues

Tegna Inc (TGNA): Chuck Royce (Trades, Portfolio) sold all 1,432,316 shares, resulting in a -0.28% impact on the portfolio. Graphic Packaging Holding Co (NYSE:GPK): Chuck Royce (Trades, Portfolio) liquidated all 1,275,693 shares, causing a -0.19% impact on the portfolio.

Key Position Reduces

Chuck Royce (Trades, Portfolio) also reduced positions in 285 stocks. The most significant changes include:

Reduced FormFactor Inc (NASDAQ:FORM) by 706,028 shares, resulting in a -60.98% decrease in shares and a -0.4% impact on the portfolio. The stock traded at an average price of $86.06 during the quarter and has returned 40.06% over the past 3 months and 135.23% year-to-date. Reduced Kyndryl Holdings Inc (NYSE:KD) by 1,479,508 shares, resulting in a -77.18% reduction in shares and a -0.4% impact on the portfolio. The stock traded at an average price of $17.6 during the quarter and has returned 1.68% over the past 3 months and -56.59% year-to-date.

Portfolio Overview

At the first quarter of 2026, Chuck Royce (Trades, Portfolio)'s portfolio included 774 stocks, with top holdings including 1.31% in Arcosa Inc (NYSE:ACA), 1.01% in Quaker Houghton (NYSE:KWR), 1% in JBT Marel Corp (NYSE:JBTM), 0.95% in ESCO Technologies Inc (NYSE:ESE), and 0.92% in MKS Inc (NASDAQ:MKSI).

The holdings are mainly concentrated in all 11 industries: Industrials, Technology, Financial Services, Consumer Cyclical, Healthcare, Basic Materials, Energy, Consumer Defensive, Communication Services, Real Estate, and Utilities.

View Comments