Benzinga | Feb 22, 2021 04:14PM EST

180 Degree Capital Corp. Reports 6.7% Growth in Q4 2020

180 Degree Capital Corp. (NASDAQ:TURN) ("180" and the "Company"), today reported its financial results as of December 31, 2020, and additional developments from the first quarter of 2021. The Company also published a letter to shareholders that can be viewed at https://ir.180degreecapital.com/financial-results.

"I'm pleased to report 2020 closed out with overall growth in NAV and stock price for 180's shareholders," said Kevin M. Rendino, Chief Executive Officer of 180. "In the four years since the start of 180, we grew our NAV by +32.2%, despite being hamstrung by limited resources at our beginning and a private portfolio that declined in value over that period. We ended 2020 with nearly $60 million in cash and securities of publicly traded companies1, up from approximately $20 million when we began executing on our investment strategy in the beginning of 2017. We secured our first separately managed account ("SMA") of $25 million from a pension fund of a publicly traded company and grew it to $33 million in just under seven months. This performance generated fees of $2.4 million for 180. Before our Board made the decision to forge ahead with our new strategy, I would argue that the future of the company was bleak at best. Four years later, I believe we have carved out a great niche for ourselves in the world of small-cap activism, continued to build the scale of the business, and developed a strong reputation in the microcap investing universe."

"After an above average NAV growth versus the indices in Q3 2020, we struggled to keep pace with the indices, and as such, we had muted NAV growth of 6.7% during in Q4 2020," added Daniel B. Wolfe, President of 180. "Q1 2021 has started off strong for 180 and our SMA. Gross total returns as of February 19, 2021 were +24.0% and +20.0%, respectively. If this period was as of the end of 2021, the return net of fees for the SMA would be +14.0% and generate approximately $2 million in carried interest for 180. We remind investors that it remains too early to know where 180's NAV and the performance of our separately managed account will end up as of the end of this quarter or the end of 2021."2

"I would also like to note that we have recently reached agreement to invest $2.3 million in a newly-formed sponsor vehicle that plans to form a new special purpose acquisition company("SPAC")," added Mr. Rendino. "We have worked with the founding management team in a prior investment and will be excited to share the details as events unfold over the coming months. While this would be our first investment in a SPAC sponsor vehicle, it is not likely to be our last."3

The table below summarizes 180's performance over periods of time and provides an update for Q1 2021 as of February 19, 2021:

Quarter 1 3 Year Inception Year to Date Q4 Q4 Q1 2021 Q4 2020 2019- 2017- Q4 2016- Thru 2/19 Q4 Q4 Q4 2020 /21 2020 2020TURN Public Portfolio Gross Total 5.3% 13.2% 128.3% 251.6% 24.0%1Return (Excluding SMA Carried Interest)TURN Public Portfolio Gross Total 9.6%4 17.8% 137.6% 265.9% 24.0%1,4Return (Including SMA Carried Interest) Change in NAV 6.7% 1.1% 19.0% 32.2% 13.7%1 Change in Stock Price 17.5% 3.3% 12.7% 60.9% 6.5%Change in Cash + Securities of Publicly 7.8% 16.6% 115.5% 200.0% 21.8%Traded Companies Russell Microcap Index 31.4% 20.9% 28.8% 45.7% 27.1%Russell Microcap Value Index 33.6% 8.1% 15.0% 28.8% 21.9%Russell 2000 31.4% 19.9% 33.9% 53.5% 14.9%

Mr. Rendino and Daniel Wolfe, President, Chief Financial Officer and Portfolio Manager, will host a conference call tomorrow, Tuesday, February 23, 2021, at 9am Eastern Time, to discuss the results from Q4 2020 and the developments during Q1 2021. The call can be accessed by phone at (712) 770-4598 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.