180 Degree Capital Corp. Reports $8.10 Net Asset Value Per Share As Of September 30, 2022, A 3.0% Decline From the Prior Quarter
180 Degree Capital Corp. (NASDAQ:TURN) ("180" and the "Company"), today reported its financial results as of September 30, 2022, and additional developments from the fourth quarter of 2022. The Company also published a letter to shareholders that can be viewed at https://ir.180degreecapital.com/financial-results.
"While our performance in Q3 2022 improved relative to Q2 2022, the overall market and our holdings continue to be pressured by the same themes that have been the only focus of investors," said Kevin M. Rendino, Chief Executive Officer of 180. "We ended the quarter with an NAV decline of 3.0% and a gross total return in our public and related portfolio of -2.9%. When we started, we told you we were going to construct a concentrated group of companies and use a Graham and Dodd process for selecting those companies, supplemented with an activist approach. In doing so, we knew that we would have less correlation with the indices, which is intentional, and have a portfolio that had a higher risk/reward profile than the average diversified small cap fund. For the first five years, we showed the benefit of our strategy, both in terms of our absolute and relative performance. Thus far through 2022, we have seen the opposite. While it is never fun to live through nasty selloffs like the one we are currently experiencing, they can create opportunities in individual names that offer significant upside. We have used this environment as an opportunity to add to our positions, and we continue to be undeterred in our vision for growing 180's assets to at least $200 million over time. Please see our shareholder letter for our specific analysis of developments at each of our holdings during the quarter."
"As of the end of Q3 2022, cash and public and related securities comprised approximately 80% of our total assets," said Daniel B. Wolfe, President of 180. "The remaining 20%, or approximately $17.5 million, of our net assets are in legacy private holdings that we are attempting to monetize as situations allow. Of this amount, $2.6 million represents cash payments due to 180 from the acquisition of TARA Biosystems, Inc., by Valo Health, LLC, over the subsequent 1.5 years. We currently expect to receive approximately $275,000 of this amount in December 2022, $1 million in April 2023 and the remaining $1.3 million in April 2024. Our goal remains to take the makeup of our investment portfolio to 100% in public and related securities."
The table below summarizes 180's performance over periods of time through the end of Q3 20221:
| Quarter | YTD | 1 Year | 3 Year | 5 Year | Inception to Date |
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| Q3 2022 | Q4 2021- Q3 2022 |
Q3 2021- Q3 2022 |
Q3 2019- Q3 2022 |
Q3 2017- Q3 2022 |
Q4 2016- Q3 2022 |
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| TURN Public Portfolio Gross Total Return (Excluding SMA Carried Interest) | -2.9% | -32.9% | -28.9% | 10.3% | 96.7% | 218.0% | |||
| TURN Public Portfolio Gross Total Return (Including SMA Carried Interest) | -2.9% | -32.9% | -31.7% | 50.5% | 182.4% | 239.0% | |||
| Change in NAV | -3.0% | -24.0% | -21.9% | -11.5% | 0.7% | 15.4% | |||
| Change in Stock Price | -10.4% | -25.3% | -24.3% | -14.4% | 5.2% | 32.6% | |||
| Russell Microcap Index | -0.5% | -25.5% | -27.5% | 21.9% | 16.5% | 29.5% | |||
| Russell Microcap Value Index | -2.0% | -18.8% | -18.0% | 29.6% | 27.8% | 39.7% | |||
| Russell 2000 | -2.2% | -25.1% | -23.5% | 13.3% | 18.9% | 31.9% | |||
Mr. Rendino and Mr. Wolfe will host a conference call tomorrow, Tuesday, November 8, 2022, at 9am Eastern Time, to discuss the results from Q3 2022 and developments during Q4 2022. 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's investor relations website at https://ir.180degreecapital.com/ir-calendar.