TURN - 180 Degree Capital Q1 2024 Shareholder Letter
2024-05-29 06:50:00 ET
Summary
- 180 Degree Capital is a closed end fund and RIA focused on investing in under valued micro cap companies and providing assistance through constructive activism.
- Despite the market’s sell-off in March, we achieved a +4.7% gross total return from our cash and public-related securities leading to a 2.8% gain in our NAV to $5.16.
- While generating modest gains through the first quarter of 2024, we hope Q1 2024 was the start of what we believe will be a return to risk asset classes, including the micro capitalization stocks in which we invest.
- We believe our constructive activism is not only a differentiated investment approach, but also can be an important part of the ultimate unlocking of value for our portfolio holdings and creation of value for 180 Degree Capital’s stockholders.
5% Fed Fund Rates are Not the End of the World... In Fact, They are Normal
Fellow Shareholders:
Since the Federal Reserve began its rate hiking cycle in March 2022, there has been a near-constant drumbeat that higher interest rates would drive the economy into recession. The common view wasn’t whether we would end up in a recession, but rather, how deep and long-lasting it would be. After all, how could the economy grow after the Federal Reserve brought the Fed funds rate to a targeted 5.25-5.50% versus near zero rates only 18 months ago?...
180 Degree Capital Q1 2024 Shareholder Letter