Associated Capital Group, Inc. Reports Fourth Quarter and Full Year Results

Core Viewpoint - Associated Capital Group, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2023, highlighting a decrease in assets under management (AUM) and revenues, but an increase in net income and book value per share compared to the previous year [1][2][4]. Financial Performance - Book value per share increased to $42.11 at year-end 2023 from $40.48 a year ago [1][2]. - AUM at year-end was $1.59 billion, down from $1.84 billion at the end of 2022, reflecting net outflows of $325 million [2][8]. - Revenues for the fourth quarter were $5.6 million, a decrease from $7.5 million in the same quarter of 2022, primarily due to lower average AUM and performance-based fees [5][7]. - For the full year, revenues totaled $12.7 million, down from $15.2 million in 2022 [7][29]. - Net income for the fourth quarter was $16.3 million, compared to $13.7 million in the fourth quarter of 2022, and for the full year, net income was $37.5 million, a significant recovery from a loss of $48.9 million in 2022 [2][7][29]. Shareholder Returns - The Board of Directors authorized the repurchase of up to an additional 350,000 shares, following the repurchase of 452,688 Class A shares for $16.3 million in 2023 [1][21][22]. - Since the spin-off in 2015, the company has returned $172.4 million to shareholders through share repurchases and paid dividends of $36.4 million [22]. Charitable Contributions - The company completed $4.0 million in donations to shareholder-designated charitable organizations in January 2024, bringing total giving to $38 million since the spin-off [1][3]. Investment Strategy - The company focuses on alternative investment management, particularly in merger arbitrage, which generated gross returns of 5.49% for the full year 2023 [11][13]. - The merger arbitrage strategy remains a key offering, with a total AUM of $1.31 billion in this strategy for 2023 [10][19].