MONTCLAIR, NJ, August 10, 2021 (GLOBE NEWSWIRE) – 180 Degree Capital Corp. (NASDAQ: TURN) (“180” and the “Company”), today announced its financial results as at June 30, 2021 and other developments from the third quarter of 2021. The Company also issued a letter to shareholders which can be found at https://ir.180degreecapital.com/financial-results.
“I am pleased to report our fifth consecutive quarter of growth in our net asset value per share (NAV) as of June 30, 2021, to $ 10.68,” said Kevin M. Rendino, CEO of 180. “Again Once, this growth was fueled by our continued strong performance in our public markets investment strategy which generated a gross total return of + 5.9% in the second quarter of 2021.1 Our Separately Managed Account (SMA) also performed strongly, generating a gross total return of + 6.8%. If it was the end of 2021, we would generate around $ 2.8 million in deferred interest from the SMA, and the net performance for the first half of 2021 for the SMA would be + 20.2%.2 I remind investors that this potential stake is not included in our reported net asset value at the end of the second quarter of 2021. We ended the quarter with approximately $ 121 million3 in total assets under management in 180 and our SMA, available to be deployed in our public markets investment strategy.
“While the gains from our public market investment strategy have been partially offset by a decline in the value of our private portfolio, this private portfolio only represents 30% of our total assets,” added Daniel B . Wolfe, chairman of 180. “We also note that one of our smaller private holdings was acquired during the quarter and we currently expect another to bring in about $ 1 million in cash in the third quarter so that we can. use it in the continued growth of our public investment strategy. Including this expected $ 1 million, our assets under management invested in our public investment strategy were $ 75.2 million3 from the close of public contracts on August 9, 2021.
The table below summarizes the performance of 180 over periods up to the end of Q2 2021:
|Trimester||YTD||1 year||3 years||Creation to date|
|Q2 2021||Q4 2020-
|TURN Total gross return on the public portfolio (excluding SMA Carry Interest)||5.9%||35.9%||79.5%||114.1%||377.9%|
|TURN Total gross yield of the public portfolio (including deferred interest SMA)||6.8%||40.8%||93.6%||130.9%||382.3%|
|Change in net asset value||0.8%||15.1%||31.9%||22.3%||52.1%|
|Change in share price||8.9%||21.0%||54.4%||16.3%||94.7%|
|Russell Microcap Index||4.1%||29.0%||75.7%||49.9%||88.0%|
|Russell Microcap Value Index||3.2%||34.9%||85.5%||40.4%||73.7%|
Mr. Rendino and Mr. Wolfe will hold a conference call tomorrow, Wednesday, August 11, 2021 at 9:00 a.m. Eastern Time to discuss second quarter 2021 results and developments during the third quarter of 2021. The call is accessible by phone at (712) 770-4598 passcode 415049 or via the web at https://www.freeconferencecall.com/wall/180degreecapital. Additionally, the slides that will be referred to during the presentation are available on the 180 Investor Relations website at https://ir.180degreecapital.com/ir-calendar.
Approximately 180 Degree Capital Corp.
180 Degree Capital Corp. is a publicly traded registered closed-end fund focused on investing and providing value-added assistance through constructive activism to what we believe to be small, significantly undervalued publicly traded companies that have significant recovery potential. Our goal is for the result of our constructive activism to lead to a reversal of direction for the stock prices of these owned companies, i.e. a 180 degree turn. Detailed information on 180 and its holdings is available on its website at www.180degreecapital.com.
Daniel B. Wolfe
180 Degree Capital Corp.
This press release may contain forward-looking statements concerning future events. These forward-looking statements are subject to the uncertainties inherent in forecasting 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 refer to 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 provided by federal securities laws, the Company assumes 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 have been provided as a convenience, and the information contained on this website is not incorporated by reference in this press release. 180 is not responsible for the content of third party websites.
1 Past performance is not an indication or guarantee of future performance. Total gross unrealized and realized returns on cash and securities of 180 publicly traded companies are compounded on a quarterly basis, and intra-quarter cash flows from investments in or proceeds received from private placements are treated as cash inflows or outflows available to invest or withdrawn, respectively, for the purposes of this calculation. 180 is an internally managed, registered closed-end fund that has a portion of its assets in existing private companies that are measured at fair value on a quarterly basis by the valuation committee of its board of directors. 180 is a registered closed-end fund managed internally and does not have an external manager who charges fees based on assets and / or returns. Please see the documents filed by 180 with the SEC, including its 2020 Annual Report on Form N-CSR and its 2021 Semi-Annual Report on Form N-CSRS for information on its expenses and expense ratios.
2 Deferred interest is due on the separately managed account based on annual performance and is not accrued until year end performance is determined or otherwise payable. The actual deferred interest at the end of 2021 may be significantly different.
3 Cash, net of unsettled transactions.