180 Degree Capital Corp. Reports +14.2% Growth in Q1 2021, $10.60 Net Asset Value Per Share as of March 31, 2021, and Develop...
May 11 2021 - 3:05PM
180 Degree Capital Corp. (NASDAQ:TURN) (“180” and the “Company”),
today reported its financial results as of March 31, 2021, and
additional developments from the second quarter of 2021. The
Company also published a letter to shareholders that can be viewed
at https://ir.180degreecapital.com/financial-results.
“I am pleased to report continued growth in our
net asset value per share (NAV) as of March 31, 2021, to $10.60,
the highest level in over six years,” said Kevin M. Rendino, Chief
Executive Officer of 180. “This growth was powered by our continued
strong performance in our public market investment strategy that
generated a gross total return of +28.3% in the first quarter of
2021.1 Our separately managed account (SMA) had strong performance
as well, generating a gross total return of +20.7%. If this were
the end of 2021, we would generate approximately $2 million in
carried interest from the SMA, and net performance for the SMA
would be 14.5%.2 I remind investors that this potential carried
interest is not included in our reported NAV as of the end of the
first quarter of 2021. We ended the quarter with approximately $114
million in assets under management in aggregate in 180 and our SMA,
available to be deployed in our public market investment strategy.
I am proud of this 5.5x increase in scale we have built at 180
since starting in 2017. We continue to believe our Graham and Dodd
investment philosophy, coupled with our activist approach, will
lead to enhanced shareholder value creation for all of our TURN
shareholders.”
“Q2 2021 has started off positive for 180 and
our SMA,” added Daniel B. Wolfe, President of 180. As of May 10,
2021, 180’s cash3 and securities of publicly traded companies
increased to approximately $77.0 million, or $7.42 per share, and
our SMA increased to approximately $41.5 million in asset value.
These increases bring our current assets to be deployed in our
public market investment strategy to approximately $118.5 million.
We remind investors that it remains too early to know where 180’s
NAV and the net assets of our SMA will end up as of the end of Q2
2021 or the end of 2021.”
The table below summarizes 180’s performance
over periods of time through the end of Q1 2021:
|
Quarter |
1 Year |
3 Year |
Inception to Date |
|
Q1 2021 |
Q1 2020-Q1 2021 |
Q1 2018-Q1 2021 |
Q4 2016-Q1 2021 |
TURN Public Portfolio Gross Total Return (Excluding SMA Carried
Interest) |
28.3% |
110.0% |
169.7% |
351.2% |
TURN Public Portfolio Gross Total Return (Including SMA Carried
Interest) |
31.8%3 |
124.5% |
188.3% |
382.3% |
|
|
|
|
|
Change in NAV |
14.2% |
66.7% |
33.8% |
51.0% |
|
|
|
|
|
Change in Stock Price |
11.1% |
81.6% |
32.6% |
78.7% |
|
|
|
|
|
Russell Microcap Index |
23.9% |
120.3% |
58.2% |
80.5% |
Russell Microcap Value Index |
30.7% |
120.5% |
49.9% |
68.2% |
Russell 2000 |
12.7% |
94.8% |
51.0% |
73.0% |
Mr. Rendino and Mr. Wolfe will host a conference
call tomorrow, Wednesday, May 12, 2021, at 9am Eastern Time, to
discuss the results from Q1 2021 and the developments during Q2
2021. The call can be accessed by phone at (712) 770-4598 passcode
415049 or via the web at
https://www.freeconferencecall.com/wall/180degreecapital.
Additionally, slides that will be referred to during the
presentation can be found on 180’s investor relations website at
https://ir.180degreecapital.com/ir-calendar.
About 180 Degree Capital
Corp.
180 Degree Capital Corp. is a publicly traded
registered closed-end fund focused on investing in and providing
value-added assistance through constructive activism to what we
believe are substantially undervalued small, publicly traded
companies that have potential for significant turnarounds. Our goal
is that the result of our constructive activism leads to a reversal
in direction for the share price of these investee companies, i.e.,
a 180-degree turn. Detailed information about 180 and its holdings
can be found on its website at www.180degreecapital.com.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.973-746-4500
Forward-Looking Statements
This press release may contain statements of a
forward-looking nature relating to future events. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. These
statements reflect the Company's current beliefs, and a number of
important factors could cause actual results to differ materially
from those expressed in this press release. Please see the
Company's securities filings filed with the Securities and Exchange
Commission for a more detailed discussion of the risks and
uncertainties associated with the Company's business and other
significant factors that could affect the Company's actual results.
Except as otherwise required by Federal securities laws, the
Company undertakes no obligation to update or revise these
forward-looking statements to reflect new events or uncertainties.
The reference and link to the website www.180degreecapital.com has
been provided as a convenience, and the information contained on
such website is not incorporated by reference into this press
release. 180 is not responsible for the contents of third-party
websites.
1 Past performance is not an indication or
guarantee of future performance. Gross unrealized and realized
total returns of 180's cash and securities of publicly traded
companies are compounded on a quarterly basis, and intra-quarter
cash flows from investments in or proceeds received from privately
held investments are treated as inflows or outflows of cash
available to invest or withdrawn, respectively, for the purposes of
this calculation. 180 is an internally managed registered
closed-end fund that has a substantial portion of its assets in
legacy privately held companies that are fair valued on a quarterly
basis by the Valuation Committee of its Board of Directors. 180 is
an internally managed registered closed end fund and does not have
an external manager that is paid fees based on assets and/or
returns. Please see 180's filings with the SEC, including its 2020
Annual Report filed on Form N-CSR for information on its expenses
and expense ratios.2 Carried interest is due from the separately
managed account based on annual performance and is not accrued
until end-of-year performance is determined or is otherwise
payable. Actual carried interest at the end of 2021 may be
materially different.3 Cash, net of unsettled trades.
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