Associated Capital Group, Inc. Reports Second Quarter Results

Financial Performance - Assets under management (AUM) at June 30, 2024, were $1.36 billion, down from $1.55 billion at March 31, 2024, and $1.55 billion at June 30, 2023 [1][3][7] - Book value per share increased to $42.87 at the end of the quarter, compared to $42.80 at March 31, 2024, and $41.41 at June 30, 2023 [1][3][22] - Total revenues for the second quarter were $2.6 million, up from $2.4 million in the same quarter of 2023 [4][21] - Net income for the quarter was $2.985 million, compared to $3.371 million in the second quarter of 2023, resulting in a diluted net income per share of $0.14 [2][22] Shareholder Returns - The company returned $4.4 million to shareholders through dividends and share repurchases in the second quarter [1] - A shareholder designated charitable contribution of $0.20 per share was approved, totaling approximately $4.3 million [1][13] - Since inception, the company has returned $178.5 million to shareholders through various means, including dividends and share repurchases [14][15] Operating Expenses - Total operating expenses, excluding management fees, were $5.8 million in the second quarter of 2024, compared to $5.3 million in the same quarter of 2023 [5][21] - The increase in operating expenses was primarily due to $0.6 million in marketing expenses related to the merger arbitrage SICAV and a $0.3 million increase in stock-based compensation [5][6] Investment Strategy - The company focuses on alternative investment strategies, particularly in merger arbitrage, which aims for absolute returns independent of market conditions [9][11] - The merger arbitrage strategy generated gross returns of -1.37% for the second quarter of 2024 [10] Market Context - Worldwide M&A activity reached $1.5 trillion in the first half of 2024, an 18% increase compared to the previous year, with U.S. deal-making accounting for 53% of this activity [10]