180 Degree Capital Corp. Reports Net Asset Value per Share (“NAV”) of $5.16 as of March 31, 2024
May 13 2024 - 3:05PM
180 Degree Capital Corp. (NASDAQ:TURN) (“180 Degree Capital” and
the “Company”), today reported its financial results as of March
31, 2024, and noted additional developments from the second quarter
of 2024. The Company also published a letter to shareholders that
can be viewed at https://ir.180degreecapital.com/financial-results.
“The first quarter of 2024 continued overall
positive trends both in terms of increases of our net asset value
per share (“NAV”) and microcapitalization-focused indices,” said
Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital.
“Our +4.7% gross total return in our public portfolio was the
primary contributor to the growth of NAV from $5.02 to $5.16. As we
noted in our press release on May 1, 2024, the pressure on
microcapitalization stocks that began in mid-March 2024 has
continued through the second quarter of 2024 to date in the face of
strong reports by many of our portfolio companies. We are actively
using this period of market softness to align our portfolio with
those companies that we believe are in the best positions to
perform during this period and to create outsized value for
stockholders as capital returns to risk assets. We are also
expanding our constructive activism engagements to help our
companies be prepared for a favorable market environment for
microcapitalization stocks, while making sure that their businesses
are well-managed and well-positioned during the current market
softness.”
“We continue to view the dislocation between
large capitalization stocks and microcapitalization stocks as an
opportunity for long-term value creation for TURN’s stockholders,”
added Daniel B. Wolfe, President of 180 Degree Capital. “Our
permanent capital provides the ability to take advantage of such
periods where other funds may be forced to sell due to redemptions
and/or lack of inflows of capital. We have used such periods in the
past to double-down on those positions that we believe have
outsized risk/reward profiles. TURN is a unique investment
opportunity for those investors interested in a concentrated
portfolio of approximately 10-15 microcapitalization companies
overlaid with our constructive activism. We do not believe there is
another publicly traded entity that has this combination of
attributes.”
The table below summarizes 180’s performance
over periods of time through the end of Q1 20241:
|
Quarter |
1 Year |
3 Year |
5 Year |
Inception to Date |
|
Q1 2024 |
Q1 2023- Q1 2024 |
Q1 2021- Q1 2024 |
Q1 2019- Q1 2024 |
Q4 2016- Q1 2024 |
TURN Public Portfolio Gross Total Return (Excluding SMA Carried
Interest) |
4.7% |
-8.1% |
-36.4% |
39.6% |
196.3% |
TURN Public Portfolio Gross Total Return (Including SMA Carried
Interest) |
4.7% |
-8.1% |
-34.7% |
48.9% |
215.7% |
|
|
|
|
|
|
Change in NAV |
2.8% |
-20.9% |
-51.3% |
-37.7% |
-26.5% |
|
|
|
|
|
|
Change in Stock Price |
4.6% |
-14.7% |
-42.0% |
-23.1% |
3.6% |
|
|
|
|
|
|
Russell Microcap Index |
4.7% |
17.8% |
-14.0% |
39.4% |
55.2% |
Russell Microcap Growth Index |
6.0% |
13.3% |
-32.2% |
17.8% |
36.3% |
Russell Microcap Value Index |
3.5% |
19.6% |
-0.2% |
54.6% |
67.8% |
Russell 2000 Index |
5.2% |
19.7% |
-0.4% |
47.4% |
72.3% |
Mr. Rendino and Mr. Wolfe will host a conference
call tomorrow, Tuesday, May 14, 2024, at 9am Eastern Time, to
discuss the results from Q1 2024 and developments to date during Q2
2024. The call can be accessed by phone at (609) 746-1082 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 Degree Capital’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 Degree Capital
and its holdings can be found on its website at
www.180degreecapital.com.
Press Contact:Daniel B. Wolfe180 Degree Capital
Corp.973-746-4500ir@180degreecapital.com
Mo ShafrothRF
Bindermorrison.shafroth@rfbinder.com
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 Degree Capital 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 Degree Capital'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 Degree Capital is an internally
managed registered closed-end fund that has a 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, and 180 Degree Capital does not have an external manager
that is paid fees based on assets and/or returns. Please see 180
Degree Capital's filings with the SEC, including its 2023 Annual
Report on Form N-CSR for information on its expenses and expense
ratios.
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