180 Degree Capital Corp. Reports Net Asset Value Per Share (“NAV”) of $4.40 as of September 30, 2024, and Will Host Conference Call to Discuss Results and Q4 2024 Updates on November 15, 2024

Rhea-AI Summary

180 Degree Capital Corp. (NASDAQ:TURN) reported a Net Asset Value Per Share of $4.40 as of September 30, 2024. The company's Q3 2024 performance showed mixed results with public portfolio gross total return of -0.4% for the quarter and -6.3% YTD. The NAV declined -2.2% in Q3 and -12.4% YTD, while the stock price decreased -11.0% and -17.7% respectively. Despite challenging conditions in small and microcapitalization stocks, management expressed optimism about market opportunities, citing historically low valuations and positive reports from major holdings during the earnings cycle.

Positive

• Management reports positive earnings updates from largest holdings
• Company identifies potential growth opportunities in small-cap stocks due to historically low valuations

Negative

• NAV declined 12.4% YTD
• Stock price decreased 17.7% YTD
• Public portfolio showed negative returns of -6.3% YTD
• 3-year NAV performance shows significant decline of -57.6%

Insights

Financial Analyst

The Q3 2024 results reveal concerning trends for 180 Degree Capital. The company's NAV declined to $4.40 per share, marking a -2.2% quarterly decrease and a substantial -12.4% YTD decline. More worryingly, the stock price dropped -11% in Q3 and -17.7% YTD, significantly underperforming the Russell Microcap Index's 8.3% Q3 gain.

The public portfolio performance has been particularly weak, showing a -6.3% YTD return and a dramatic -42.4% three-year decline. This underperformance against broader market indices suggests serious challenges in the company's investment strategy and portfolio management. The significant gap between NAV decline and market indices indicates potential structural issues beyond general market conditions.

MONTCLAIR, N.J., Nov. 14, 2024 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (NASDAQ:TURN) (“180 Degree Capital” and the “Company”), today reported its financial results as of September 30, 2024, and noted additional developments from the fourth quarter of 2024. The Company also published a letter to shareholders that can be viewed at https://ir.180degreecapital.com/financial-results.

“While the first three quarters of 2024 have proven challenging for small and microcapitalization stocks on a relative basis and our holdings on an absolute basis, we believe that we are at an inflection point in the cycle where interest is returning to our investment universe, particularly for companies that are performing,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “We continue to believe there is significant opportunity going forward for small capitalization stocks, particularly given the backdrop of their historically low valuations in general and relative to large capitalization stocks. I have seen this play out time and time again during my 35+ years of experience through these types of investment cycles. While it is always possible this time is different, recent market trends have similar characteristics to those that, upon reflection, turn out to be market bottoms heightened by excess pessimism that can be followed by periods of strong growth.”  

“The absence of information breeds uncertainty and fear, particularly for the stocks in which we invest,” continued Daniel B. Wolfe, President of 180 Degree Capital. “Tax-loss selling and low liquidity result in significant volatility that is often independent from the reality of the state of these businesses. This is why we, as fundamental investors, get to know management teams, understand markets, and position ourselves to take advantage of market dislocations. We are particularly encouraged by the reports from a number of our largest holdings during this earnings cycle that we believe position them for additional growth and stock price appreciation. We look forward to discussing these updates on our shareholder call and with investors throughout the quarter.”

The table below summarizes 180’s performance over periods of time through the end of Q3 2024¹:

	Quarter	YTD	1 Year	3 Year	5 Year	Inception to Date
	Q3 2024	Q4 2023- Q3 2024	Q3 2023- Q3 2024	Q3 2021- Q3 2024	Q3 2019- Q3 2024	Q4 2016- Q3 2024
TURN Public Portfolio Gross Total Return (Excluding SMA Carried Interest)	-0.4%	-6.3%	0.2%	-42.4%	-10.7%	165.1%
TURN Public Portfolio Gross Total Return (Including SMA Carried Interest)	-0.4%	-6.3%	0.2%	-40.9%	-4.7%	182.5%
Change in NAV	-2.2%	-12.4%	-10.4%	-57.6%	-51.9%	-37.3%
Change in Stock Price	-11.0%	-17.7%	-20.4%	-53.5%	-47.4%	-18.5%
Russell Microcap Index	8.3%	7.4%	24.7%	-10.9%	49.8%	59.2%
Russell Microcap Growth Index	8.6%	6.9%	23.6%	-27.2%	31.5%	37.4%
Russell Microcap Value Index	8.2%	5.2%	22.8%	0.1%	58.1%	70.5%
Russell 2000 Index	9.3%	11.2%	26.7%	5.5%	56.4%	82.1%

Mr. Rendino and Mr. Wolfe will host a conference call tomorrow, Friday, November 15, 2024, at 9am Eastern Time, to discuss the results from Q3 2024 and developments to date during Q4 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
ir@180degreecapital.com

Mo Shafroth
RF Binder
morrison.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.

FAQ

What was 180 Degree Capital's (TURN) NAV as of September 30, 2024?

180 Degree Capital's Net Asset Value Per Share was $4.40 as of September 30, 2024.

How did 180 Degree Capital's (TURN) stock price perform in Q3 2024?

180 Degree Capital's stock price decreased by 11.0% during Q3 2024.

What was TURN's YTD public portfolio performance as of Q3 2024?

180 Degree Capital's public portfolio showed a negative gross total return of -6.3% YTD as of Q3 2024.

When is 180 Degree Capital's (TURN) Q3 2024 earnings conference call?

The earnings conference call is scheduled for November 15, 2024, at 9am Eastern Time.