SuRo Capital(SSSS) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of March 31, 2024, the net asset value (NAV) was $181.7 million, or $7.17 per share, down from $7.99 per share at year-end 2023 and $7.59 per share at the end of Q1 2023, primarily due to unrealized depreciation of portfolio investments [32][44] - The decrease in NAV per share was attributed to a $0.73 per share decrease from unrealized depreciation, a $0.13 decrease from net investment loss, and a $0.02 decrease from net realized losses, partially offset by a $0.06 increase due to stock-based compensation [44] Business Line Data and Key Metrics Changes - The top five positions in the investment portfolio accounted for approximately 51% of the fair value, with the top ten positions representing about 78% [11] - The investment portfolio was allocated as follows: 31% in education technology, 19% in cloud and big data, 19% in marketplaces, 17% in financial technology, 13% in social, mobile, and consumer, and less than 1% in sustainability [49] Market Data and Key Metrics Changes - The company noted a strong performance in public equity markets and a renewed investor enthusiasm for high-growth technology companies, highlighted by the performance of recent IPOs such as Reddit and Rubrik [10] - The company has actively engaged in potential additional investments, deploying half of its available cash over the last four months [31] Company Strategy and Development Direction - The company is focused on enhancing shareholder value through strategic investments, including a $10 million investment in Canva and a $15 million investment in CoreWeave, which is positioned as a leader in AI infrastructure [30][22] - The investment strategy emphasizes patience in capital deployment, with a focus on high-growth technology sectors and AI infrastructure [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's positioning to drive shareholder returns, citing strong performances of high-profile technology IPOs and the potential for significant growth in AI infrastructure [20][29] - The company highlighted its commitment to initiatives that enhance shareholder value, including a modified Dutch Auction tender offer to repurchase shares [23][41] Other Important Information - The company completed a Dutch Auction tender offer, repurchasing 2 million shares at a price of $4.70 per share, representing 7.9% of outstanding shares [50] - The liquidity position as of March 31 included approximately $84.6 million in liquid assets, with $50.8 million in cash and $29.6 million in short-term U.S. Treasury [24] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without further inquiries [46]