180 Degree Capital Corp. Reports Net Asset Value per Share ("NAV") of $5.16 as of March 31, 2024
MONTCLAIR, N.J., May 13, 2024 (GLOBE NEWSWIRE) -- 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. Wolfe
180 Degree Capital Corp.
973-746-4500
[email protected]
Mo Shafroth
RF Binder
[email protected]
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.
