SuRo Capital(US:SSSS)2023-03-16 02:43Financial Data and Key Metrics Changes - The company ended the fourth quarter and fiscal year 2022 with a net asset value (NAV) of $210 million or $7.39 per share, down from $7.83 per share at the end of Q3 2022 and $11.72 per share at the end of 2021 [64] - The company reported a net investment loss of approximately $14.7 million and a net long-term realized capital loss on investments of $5.9 million for the year, leading to no dividends being distributed for 2022 [28][24] Business Line Data and Key Metrics Changes - The company made investments totaling $24 million over the year, with $10.3 million deployed in Q4, including a $10 million investment in Locus Robotics [8][69] - The investment portfolio is segmented with approximately 39% in technology, 24% in financial technology and services, and 17% in marketplaces [70][26] Market Data and Key Metrics Changes - The NASDAQ Composite Index declined by over 30% in 2022, with technology stocks experiencing a 31.5% decline, marking the largest single-year loss since 2008 [7] - The company noted that growth, communications, consumer discretionary, and technology sectors saw declines of approximately 40%, 37%, and 28% respectively in 2022 [61] Company Strategy and Development Direction - The company aims to leverage its cash position to explore new investment opportunities in a volatile market, focusing on late-stage, high-growth companies [11][62] - The company is committed to enhancing shareholder value through an active share repurchase program, having repurchased over 3 million shares in 2022 [14][81] Management's Comments on Operating Environment and Future Outlook - Management highlighted the instability in the global financial system and its impact on venture capital funding, particularly following the failures of Silicon Valley Bank and Signature Bank [5][38] - The company expects the collapse of SVB to have longer-term impacts on liquidity solutions within the startup ecosystem [39] Other Important Information - The company has approximately $138.5 million in liquidity, including $40.1 million in cash and $85.1 million in short-term US securities [52] - The company’s top five positions accounted for approximately 59% of the investment portfolio at fair value as of December 31, 2022 [65] Q&A Session Summary Question: How have recent developments impacted the investment landscape? - Management acknowledged that the absence of Silicon Valley Bank complicates the process for startups to open bank accounts, indicating a shift in the investment landscape [84][85]