ASSOCIATED CAPITAL GROUP, INC. Reports Fourth Quarter and Full Year Results

Financial Performance - The company reported fourth quarter revenues of $5.2 million, a decrease from $5.6 million in the same quarter of 2023 [3] - For the full year 2024, revenues increased to $13.2 million from $12.7 million in 2023 [9] - The operating loss before management fee for the fourth quarter was $3.1 million, compared to a loss of $2.5 million in the fourth quarter of 2023 [7][9] - Net income for the fourth quarter was $4.3 million, down from $16.3 million in the prior year [32] - The company reported a net income of $44.3 million for the full year 2024, compared to $37.5 million in 2023 [32] Assets Under Management (AUM) - AUM at the end of 2024 was $1.25 billion, down from $1.59 billion at the end of 2023 [2][11] - The decrease in AUM was attributed to net outflows of $363 million and currency fluctuations, partially offset by market appreciation of $49 million [11] - The merger arbitrage strategy saw significant outflows, particularly from the GAMCO Merger Arbitrage UCITS [11] Investment Strategy and Performance - The company's merger arbitrage strategy generated gross returns of 5.83% for the full year 2024, with net returns of 3.82% [15] - The strategy has historically outperformed 90-day T-Bills, with a consistent record of positive net returns in 38 of the last 40 years [15][16] - The company aims to leverage its research and investment capabilities to pursue acquisitions and broaden its product offerings [21] Shareholder Returns - The company returned $58.6 million to shareholders in 2024 through dividends and share repurchases [5] - Dividends paid in 2024 amounted to $2.20 per share, with a total of $46.8 million distributed [23] - The company repurchased 353,116 Class A shares for $11.8 million during the year [24] Market Context - Worldwide M&A activity reached $3.2 trillion in 2024, a 10% increase from 2023, with the US accounting for approximately $1.4 trillion [18] - The technology sector led M&A activity with $500 billion in deals, a 32% increase from the previous year [18] - Changes in regulatory appointments in the US are expected to facilitate an increase in deal activity [19]