180 Degree Capital (TURN) - 2019 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company grew its book value by 5% in Q1 2019, entirely driven by the performance of public holdings [6] - The net asset value (NAV) at the end of Q1 was $2.76, up from $2.64 at the end of the previous year, with $0.14 of gains from the public portfolio [9][10] - Operating expenses slightly decreased to $775,000 from $800,000 in Q1 2018, representing a 4% year-over-year decrease [26] Business Line Data and Key Metrics Changes - The public portfolio contributed significantly to NAV growth, with 90% of gains coming from public investments [8] - The private portfolio remained flat during the quarter, contrasting with the previous quarter where it provided a cushion against market declines [7] Market Data and Key Metrics Changes - The Russell Microcap index increased by 13% in Q1 2019, while the company's NAV rose by 5% [7][18] - The company outperformed the Russell Microcap index and the S&P 500, achieving a 14.4% increase in public holdings [11][17] Company Strategy and Development Direction - The company aims to be a leader in public company constructive activism and is focused on generating positive shareholder returns [34] - There is a strategic shift towards increasing public holdings, which now account for nearly 42% of total assets, up from 26% at the end of 2016 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the private portfolio, highlighting that 18 of 24 positions are in actively operating businesses [21] - The company is looking for opportunities to monetize private investments to fund public investment strategies [25] Other Important Information - The company sold a convertible bridge note for $230,000 and shares of Phylagen for $25,000, indicating ongoing efforts to monetize private holdings [24] - The management team and board have collectively purchased over 400,000 shares in the last five quarters, aligning their interests with shareholders [33] Q&A Session Summary Question: Appreciation for the hard work and the second quarter update - An analyst expressed gratitude for the management's efforts and specifically mentioned the second quarter update [37] Response: Acknowledgment of appreciation - Management thanked the analyst for the feedback and confirmed the reference to the second quarter update [38][40] Conclusion: No further questions - The call concluded with management thanking participants and indicating they would return for the Q2 update [42][43]