180 Degree Capital Corp

Investor Summary

Kevin M. Rendino served as Chairman, Chief Executive Officer, and Portfolio Manager since 2017, bringing over 30 years of Wall Street experience including background at BlackRock/Merrill Lynch. Dr. Daniel B. Wolfe served as Portfolio Manager, President, Chief Financial Officer, and Chief Compliance Officer since 2009. Both key executives held less than 5% ownership in the company, though insider ownership increased to 12.7% by 2024. The leadership team transformed the company from a private investment focus to publicly traded microcapitalization companies, implementing a constructive activist approach that significantly outperformed comparable indices.

Fund Strategy

180 Degree Capital Corp described itself as 'Graham and Dodd value investors with a focus in the publicly traded micro-cap market.' The firm's objective was to achieve capital appreciation and current income by investing in undervalued small publicly traded companies through constructive activism. Their approach allowed them to identify undervalued companies whose stocks they believed provided the opportunity for 100% appreciation over a one-to-three-year cycle. The strategy involved a concentrated portfolio containing 10 to 15 names, with significant stakes enabling influential activism often exercised privately behind the scenes, occasionally resorting to public campaigns when necessary. Being concentrated allowed their investors to have the potential to achieve higher returns if they got their stock picking right. The fund aimed for individual investments to double in value within one to three years, with an overall investment horizon of 3 to 5 years. Their ultimate goal was to constructively engage with existing management teams and boards to help unlock value, and when required, they would not be averse to pursuing change through other routes, including proxy solicitations. The company's activism approach was described as working hand in hand with their portfolio companies in order to unlock the value that they believed they had identified through their analysis.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	4.5%	4.5%

Executive Summary

180 Degree Capital reported a Q1 2025 NAV decline of 4.7% to $4.42 per share, primarily due to expenses related to their proposed business combination with Mount Logan Capital. The fund's public portfolio generated a gross return of 4.5%, significantly outperforming the Russell Microcap Index's -14.4% return. Manager Kevin Rendino, a 35-year value investor, views the Mount Logan combination as a transformative opportunity to unlock shareholder value. Mount Logan brings $2.4+ billion in assets under management focused on the fast-growing private credit market, operational leverage through BC Partners association, and what management believes is significant undervaluation. The proposed transaction would convert 180 Degree from a closed-end fund to an operating company, potentially making NAV a floor rather than ceiling for stock price. The combined entity would have estimated shareholder equity of nearly $140 million, with 180 Degree shareholders receiving more than their current NAV. Management has secured approximately 27% shareholder support through voting agreements and indications of support.

Core Thesis

180 Degree Capital seeks to create significant shareholder value through a proposed business combination with Mount Logan Capital, a private credit-focused asset manager, while continuing to invest in undervalued small-cap companies with turnaround potential through constructive activism.

Forward Outlook

The manager expresses strong optimism about the proposed business combination with Mount Logan, believing it will create significant shareholder value. They expect the combined entity to benefit from economies of scale, increased capital for small-cap investments, and conversion from a closed-end fund structure to an operating company where NAV becomes a floor rather than ceiling for stock price.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
May 19 2025	2025 Q1	ACNT, AREN, AVNW, BCOV, CVGI, IVAC, LTRX, MAMA, PBPB, RFIL, SCOR, SNCR, TURN	Asset Management, Mergers, private credit, small caps, turnaround, value	-	180 Degree Capital's Q1 NAV declined 4.7% due to merger expenses, but the public portfolio outperformed significantly. The proposed Mount Logan combination represents a transformative value creation opportunity, converting the closed-end fund to an operating company with $2.4+ billion in private credit assets and potential upside from current NAV levels.
Feb 14 2025	2024 Q4	TURN	Asset Management, Merger, private credit, small caps, value	-	180 Degree Capital's CEO announces a transformational merger with Mount Logan Capital, a $2.4B private credit asset manager. The combination shifts valuation from discounted closed-end fund metrics to operating company fundamentals with predictable fee revenues. Despite strong public portfolio performance (+185.7% since inception), legacy private investments and fund structure constraints have limited value realization. Management sees this as the optimal path to unlock shareholder value.
Nov 18 2024	2024 Q3	-	activism, rates, small caps, turnaround, value	-	180 Degree Capital sees small caps poised for significant outperformance after an extended bear market, with Fed rate cuts and election clarity as key catalysts. The Russell Microcap Index has doubled S&P 500 performance since these events. Management maintains high conviction in their value-based activism strategy despite recent underperformance, positioning for the next investment cycle.
Aug 19 2024	2024 Q2	LTRX, MAMA, PBPB, SCOR, SNCR, SYNC, TST	activism, catalysts, Constructive, Microcap, small caps, value	-	180 Degree Capital deploys constructive activism in undervalued small and microcap companies to drive value creation. The fund works directly with management teams and boards to solve capital structure issues and execute catalysts. Despite recent small cap underperformance, managers see substantial upside ahead and believe their hands-on approach will differentiate returns in the next cycle.
Jun 13 2024	2024 Q1	AREN, LTRX, PBPB, QBTS, QMCO, SCOR, SNCR	activism, Microcap, rates, small caps, value	PBPB SNCR QMCO LTRX AREN SCOR	180 Degree Capital argues 5% Fed rates are historically normal and supportive of small cap performance, not crisis levels. The Russell Microcap Index down 30% from peaks creates exceptional opportunity in undervalued companies. Portfolio gained 2.8% in Q1 with manager expressing unprecedented conviction in value creation potential through constructive activism across concentrated holdings.
Feb 20 2024	2023 Q4	AREN, PBPB, SCOR, SNCR	activism, Media, Microcap, small caps, technology, value	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN SNCR ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	180 Degree Capital's manager expresses extreme conviction in microcap opportunities, arguing small companies are historically undervalued after massive underperformance versus large-caps. Portfolio companies trade at low valuations with significant upside potential as markets return to risk assets. Constructive activism at holdings like SNCR and SCOR expected to drive material value creation in 2024.
Sep 30 2023	2023 Q3	ALTG, AREN, CVGI, PBPB, QBTS, QMCO, SCOR	activism, Bear Market, Concentration, inflation, mispricing, Recession, small caps, value	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG	Rendino sees extraordinary value opportunity as small-cap market becomes completely inefficient, with quality companies like PBPB trading at one-third of historical broken-business valuations despite operational turnarounds. Believes inflation peaked, recession priced in, and current extreme bearish sentiment signals market bottom. Concentrated permanent capital structure positioned to capitalize on dramatic mispricings with 100% upside potential over three years.
Jul 20 2023	2023 Q2	CVGI, IVAC, PBPB, QBTS, SCOR, TURN	activism, Concentration, Microcap, small caps, turnaround, value	-	180 Degree Capital's concentrated microcap activism strategy faced headwinds in Q2 with company-specific issues at Intevac and Comscore driving underperformance. Management positioned for expected catalysts around debt refinancing and strategic transactions at portfolio companies, targeting 100% appreciation. With shares trading at 30% discount to NAV, Q3 has started positively.
Dec 6 2023	2023 Q1	ALTG, AREN, IVAC, PBPB, QBTS, SNCR	activism, Banking, Concentration, Fed, inflation, Microcap, Turnarounds, value	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG SNCR IVAC ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Concentrated microcap value manager delivered 3.2% NAV gain in Q1 versus -2.9% benchmark decline. Portfolio of 7-10 positions has generated 243.6% returns since 2017 inception through Graham and Dodd discipline. Manager initiated aggressive share buybacks at 23% discount to NAV, viewing current valuations as providing ripe opportunities despite banking sector stress and economic uncertainty.
Feb 24 2023	2022 Q4	ALTG, AREN, CVGI, PBPB, QBTS, SCOR, SNCR	-	-
Dec 31 2022	2022 Q3	ALTG, AREN, CVGI, PBPB, QBTS, QMCO, SCOR	-	-
Jun 30 2022	2022 Q2	2AS GR, ALTG, AREN, ELA, PBPB, QMCO, SCOR, SNCR	-	-
Mar 31 2022	2022 Q1	2AS GR, ALTG, AREN, LTRX, PBPB, QMCO, SCOR, SNCR	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

May 19 2025

2025 Q1

ACNT, AREN, AVNW, BCOV, CVGI, IVAC, LTRX, MAMA, PBPB, RFIL, SCOR, SNCR, TURN

Asset Management, Mergers, private credit, small caps, turnaround, value

180 Degree Capital's Q1 NAV declined 4.7% due to merger expenses, but the public portfolio outperformed significantly. The proposed Mount Logan combination represents a transformative value creation opportunity, converting the closed-end fund to an operating company with $2.4+ billion in private credit assets and potential upside from current NAV levels.

Feb 14 2025

2024 Q4

TURN

Asset Management, Merger, private credit, small caps, value

180 Degree Capital's CEO announces a transformational merger with Mount Logan Capital, a $2.4B private credit asset manager. The combination shifts valuation from discounted closed-end fund metrics to operating company fundamentals with predictable fee revenues. Despite strong public portfolio performance (+185.7% since inception), legacy private investments and fund structure constraints have limited value realization. Management sees this as the optimal path to unlock shareholder value.

Nov 18 2024

2024 Q3

activism, rates, small caps, turnaround, value

180 Degree Capital sees small caps poised for significant outperformance after an extended bear market, with Fed rate cuts and election clarity as key catalysts. The Russell Microcap Index has doubled S&P 500 performance since these events. Management maintains high conviction in their value-based activism strategy despite recent underperformance, positioning for the next investment cycle.

Aug 19 2024

2024 Q2

LTRX, MAMA, PBPB, SCOR, SNCR, SYNC, TST

activism, catalysts, Constructive, Microcap, small caps, value

180 Degree Capital deploys constructive activism in undervalued small and microcap companies to drive value creation. The fund works directly with management teams and boards to solve capital structure issues and execute catalysts. Despite recent small cap underperformance, managers see substantial upside ahead and believe their hands-on approach will differentiate returns in the next cycle.

Jun 13 2024

2024 Q1

AREN, LTRX, PBPB, QBTS, QMCO, SCOR, SNCR

activism, Microcap, rates, small caps, value

PBPB
SNCR
QMCO
LTRX
AREN
SCOR

180 Degree Capital argues 5% Fed rates are historically normal and supportive of small cap performance, not crisis levels. The Russell Microcap Index down 30% from peaks creates exceptional opportunity in undervalued companies. Portfolio gained 2.8% in Q1 with manager expressing unprecedented conviction in value creation potential through constructive activism across concentrated holdings.

Feb 20 2024

2023 Q4

AREN, PBPB, SCOR, SNCR

activism, Media, Microcap, small caps, technology, value

180 Degree Capital's manager expresses extreme conviction in microcap opportunities, arguing small companies are historically undervalued after massive underperformance versus large-caps. Portfolio companies trade at low valuations with significant upside potential as markets return to risk assets. Constructive activism at holdings like SNCR and SCOR expected to drive material value creation in 2024.

Sep 30 2023

2023 Q3

ALTG, AREN, CVGI, PBPB, QBTS, QMCO, SCOR

activism, Bear Market, Concentration, inflation, mispricing, Recession, small caps, value

Rendino sees extraordinary value opportunity as small-cap market becomes completely inefficient, with quality companies like PBPB trading at one-third of historical broken-business valuations despite operational turnarounds. Believes inflation peaked, recession priced in, and current extreme bearish sentiment signals market bottom. Concentrated permanent capital structure positioned to capitalize on dramatic mispricings with 100% upside potential over three years.

Jul 20 2023

2023 Q2

CVGI, IVAC, PBPB, QBTS, SCOR, TURN

activism, Concentration, Microcap, small caps, turnaround, value

180 Degree Capital's concentrated microcap activism strategy faced headwinds in Q2 with company-specific issues at Intevac and Comscore driving underperformance. Management positioned for expected catalysts around debt refinancing and strategic transactions at portfolio companies, targeting 100% appreciation. With shares trading at 30% discount to NAV, Q3 has started positively.

Dec 6 2023

2023 Q1

ALTG, AREN, IVAC, PBPB, QBTS, SNCR

activism, Banking, Concentration, Fed, inflation, Microcap, Turnarounds, value

Concentrated microcap value manager delivered 3.2% NAV gain in Q1 versus -2.9% benchmark decline. Portfolio of 7-10 positions has generated 243.6% returns since 2017 inception through Graham and Dodd discipline. Manager initiated aggressive share buybacks at 23% discount to NAV, viewing current valuations as providing ripe opportunities despite banking sector stress and economic uncertainty.

Feb 24 2023

2022 Q4

ALTG, AREN, CVGI, PBPB, QBTS, SCOR, SNCR

Dec 31 2022

2022 Q3

ALTG, AREN, CVGI, PBPB, QBTS, QMCO, SCOR

Jun 30 2022

2022 Q2

2AS GR, ALTG, AREN, ELA, PBPB, QMCO, SCOR, SNCR

Mar 31 2022

2022 Q1

2AS GR, ALTG, AREN, LTRX, PBPB, QMCO, SCOR, SNCR

QUARTER	THEMES	TAGS
2025 Q1	Value Manager emphasizes 35 years as a value investor attempting to uncover great companies trading below intrinsic value. The proposed Mount Logan combination represents what they believe is a great undiscovered and undervalued company. The letter repeatedly discusses finding substantially undervalued small, publicly traded companies with turnaround potential.	Undervalued Intrinsic Value Turnaround Mispriced Discount
	Private Credit Mount Logan is focused on what the manager believes is the fast-growing market of private credit. This is highlighted as one of the key attributes that will provide value to shareholders through the business combination. The private credit focus is part of Mount Logan's asset management platform with $2.4+ billion of assets under management.	Asset Management Fee Revenue Credit Markets Alternative Assets Growth Market
	Small Caps The fund is explicitly focused on investing in substantially undervalued small, publicly traded companies. The portfolio performance table shows investments across multiple small-cap positions. The manager notes they will substantially increase available capital to leverage relationships with small and microcapitalization public companies to develop capital structure solutions.	Microcap Small Companies Public Companies Capital Structure Constructive Activism
2024 Q4	Private Credit Mount Logan is focused on what the manager believes is the fast-growing market of private credit. The asset management platform has approximately $2.4+ billion of assets under management that generates predictable fee revenue. Mount Logan has operational leverage and unique investment access through its association with BC Partners, a leading global private equity and credit firm.	Private Credit Asset Management Fee Revenue BC Partners Credit
2024 Q3	Small Caps Manager believes small cap bear market may finally be reversing following Fed rate cuts and election uncertainty removal. Russell Microcap Index has doubled SPX 500 performance since these events. Small caps trading at historically low valuations relative to large caps present significant opportunity.	Russell Microcap Valuations Outperformance Bear Market Recovery
	Value Fund employs value-based investing approach focused on small cap activism. Manager emphasizes historically low valuations in small caps and believes excessive pessimism is usually followed by periods of strong growth based on 35+ years of experience through investment cycles.	Value Investing Activism Undervalued Contrarian Cycles
2024 Q2	Small Caps The fund focuses exclusively on small and microcapitalization companies, highlighting the growing disconnect between large and small cap stocks and historically low valuations for small caps. The Russell 2000 and Russell Microcap indices experienced dramatic volatility during the quarter, driven primarily by ETF flows rather than fundamentals.	Russell 2000 Microcap Valuations Volatility ETFs
	Value The managers emphasize their focus on undervalued small cap companies trading at historically low price-to-earnings ratios compared to large caps. They believe their asset class is significantly undervalued and that market inefficiencies create opportunities for substantial returns of at least 100%.	Undervalued Price-to-earnings Inefficiency Returns
2024 Q1	Small Caps Manager argues that 5% Fed funds rates are historically normal and small cap stocks have performed well in such environments. The Russell Microcap Index remains down 30% from its all-time high despite broader market recovery. Historical data shows small caps performed positively in 15 out of 21 years when Fed funds rates were above 4.9%.	Russell 2000 Microcap Historical Performance Interest Rates Valuation
	Rates The letter extensively discusses how current 5.25-5.50% Fed funds rates represent a return to historical norms rather than crisis levels. Over the past 60 years, the average Fed funds rate was 4.9%, and the economy grew in 84% of years when rates were above this level. The manager believes rate normalization supports continued economic growth.	Fed Funds Historical Norms Economic Growth ZIRP Monetary Policy
	Value The portfolio focuses on undervalued microcap companies trading at significant discounts to historical multiples and comparable valuations. SNCR trades at 5.5x EV/EBITDA despite 75% gross margins and 90% recurring revenue, while comparable companies trade at 10x EBITDA. The manager sees substantial hidden value across portfolio holdings.	Undervalued EV/EBITDA Multiples Hidden Value Discount
2023 Q4	Small Caps Manager emphasizes microcap companies are historically inexpensive and undervalued relative to larger companies. Russell Microcap Index underperformed NASDAQ 100 by over 4600 basis points in 2023. Small-cap valuations are highly attractive versus large-cap based on EV/EBIT metrics.	Microcap Russell Valuation Underperformance Opportunity
	Value Portfolio companies trading at historically low valuation levels with long runway to rise in value. Manager sees significant discount between current trading multiples and appropriate franchise-level multiples for holdings like PBPB and SNCR.	Undervalued Discount Multiple Expansion Mispriced
	Media Significant exposure to media companies including SCOR (media measurement) and AREN (digital media platform with Sports Illustrated and other brands). AREN signed merger agreement with Bridge Media Networks backed by 5-hour Energy founder.	Digital Content Publishing Advertising Platforms
2023 Q3	Value Manager emphasizes concentrated value investing using Graham and Dodd approach enhanced with constructive activism. Believes market is inefficient and many holdings are dramatically misvalued, trading at historically low valuations despite operational improvements. Cites David Einhorn's observation about enormous number of dramatically misvalued companies.	Value Activism Concentration Mispricing Inefficiency
	Small Caps Portfolio focused on small and micro-capitalization stocks which manager believes have become completely inefficient in valuing businesses based on three-year potential performance. Market for microcaps filled with inefficiencies and asymmetric risk/reward characteristics that can generate outsized returns with proper stock selection.	Small Caps Microcaps Inefficiency Asymmetric Concentration
	Inflation Manager believes inflation has peaked and doesn't expect another stair step function higher, particularly as year-over-year comparisons start from high inflation base. Fed rate increases already having dampening effect on economy, with mortgage rates rising from 2.7% to 7.5% in 10 months impacting housing market.	Inflation Fed Rates Housing Peak
2023 Q2	Small Caps Fund focuses on substantially undervalued small, publicly traded companies with potential for significant turnarounds through constructive activism. Portfolio is highly concentrated in microcap names with catalysts expected to drive material appreciation.	Microcap Turnaround Activism Undervalued Concentration
	AI D-Wave Quantum position benefited from renewed interest due to its position in enabling artificial intelligence platforms, though this was not enough to offset declining positions elsewhere in the portfolio.	Quantum AI Platforms Technology
2023 Q1	Small Caps Manager focuses exclusively on microcap stocks through concentrated portfolio of 7-10 positions. Believes microcap market is filled with inefficiencies and asymmetric risk/reward characteristics that allow for outsized returns when stock picking is correct. Views current environment as providing opportunities to invest in well-run businesses with significant upside.	Microcap Concentration Inefficiencies Asymmetric Valuation
	Value Fund maintains Graham and Dodd value focus, seeking companies trading at significant discounts to intrinsic value. Manager believes every stock owned has significant upside potential and cites examples like SCOR trading at 0.75x revenue when Nielsen sold for 4x revenue. Emphasizes valuation discipline and financial statement analysis.	Graham Dodd Discount Intrinsic Financial
	Rates Manager views current environment as return to normal where rates are higher than 0% and money isn't free. Believes Fed was too late removing quantitative easing and 0% rates from 2008 crisis. Expects stocks will have competition from bond market and multiples will contract as market can no longer rely on free money.	Fed Quantitative Easing Multiples Competition
	Credit Stress Discusses banking sector stress including Silicon Valley Bank failure due to asset-liability mismatch and classic run on bank scenario. Notes similar issues at Signature Bank and pressure on PacWest and Western Alliance. However, believes current situation is not financial Armageddon like 2008 as financial leverage doesn't exist like in the past.	Banking SVB Mismatch Leverage Systemic
	Inflation Manager believes inflation has already peaked and Fed rate hikes have had significant effect in lowering inflation. Views Fed as lagging indicator in combating inflation and notes inflation has eased from highs. Expects progress over coming quarters but acknowledges path will be bumpy.	Peak Lagging Progress Bumpy Easing

QUARTER

THEMES

Value

Manager emphasizes 35 years as a value investor attempting to uncover great companies trading below intrinsic value. The proposed Mount Logan combination represents what they believe is a great undiscovered and undervalued company. The letter repeatedly discusses finding substantially undervalued small, publicly traded companies with turnaround potential.

Undervalued Intrinsic Value Turnaround Mispriced Discount

Private Credit

Mount Logan is focused on what the manager believes is the fast-growing market of private credit. This is highlighted as one of the key attributes that will provide value to shareholders through the business combination. The private credit focus is part of Mount Logan's asset management platform with $2.4+ billion of assets under management.

Asset Management Fee Revenue Credit Markets Alternative Assets Growth Market

Small Caps

The fund is explicitly focused on investing in substantially undervalued small, publicly traded companies. The portfolio performance table shows investments across multiple small-cap positions. The manager notes they will substantially increase available capital to leverage relationships with small and microcapitalization public companies to develop capital structure solutions.

Microcap Small Companies Public Companies Capital Structure Constructive Activism

2024 Q4

Private Credit

Mount Logan is focused on what the manager believes is the fast-growing market of private credit. The asset management platform has approximately $2.4+ billion of assets under management that generates predictable fee revenue. Mount Logan has operational leverage and unique investment access through its association with BC Partners, a leading global private equity and credit firm.

Private Credit Asset Management Fee Revenue BC Partners Credit

2024 Q3

Small Caps

Manager believes small cap bear market may finally be reversing following Fed rate cuts and election uncertainty removal. Russell Microcap Index has doubled SPX 500 performance since these events. Small caps trading at historically low valuations relative to large caps present significant opportunity.

Russell Microcap Valuations Outperformance Bear Market Recovery

Value

Fund employs value-based investing approach focused on small cap activism. Manager emphasizes historically low valuations in small caps and believes excessive pessimism is usually followed by periods of strong growth based on 35+ years of experience through investment cycles.

Value Investing Activism Undervalued Contrarian Cycles

2024 Q2

Small Caps

The fund focuses exclusively on small and microcapitalization companies, highlighting the growing disconnect between large and small cap stocks and historically low valuations for small caps. The Russell 2000 and Russell Microcap indices experienced dramatic volatility during the quarter, driven primarily by ETF flows rather than fundamentals.

Russell 2000 Microcap Valuations Volatility ETFs

Value

The managers emphasize their focus on undervalued small cap companies trading at historically low price-to-earnings ratios compared to large caps. They believe their asset class is significantly undervalued and that market inefficiencies create opportunities for substantial returns of at least 100%.

Undervalued Price-to-earnings Inefficiency Returns

2024 Q1

Small Caps

Manager argues that 5% Fed funds rates are historically normal and small cap stocks have performed well in such environments. The Russell Microcap Index remains down 30% from its all-time high despite broader market recovery. Historical data shows small caps performed positively in 15 out of 21 years when Fed funds rates were above 4.9%.

Russell 2000 Microcap Historical Performance Interest Rates Valuation

Rates

The letter extensively discusses how current 5.25-5.50% Fed funds rates represent a return to historical norms rather than crisis levels. Over the past 60 years, the average Fed funds rate was 4.9%, and the economy grew in 84% of years when rates were above this level. The manager believes rate normalization supports continued economic growth.

Fed Funds Historical Norms Economic Growth ZIRP Monetary Policy

Value

The portfolio focuses on undervalued microcap companies trading at significant discounts to historical multiples and comparable valuations. SNCR trades at 5.5x EV/EBITDA despite 75% gross margins and 90% recurring revenue, while comparable companies trade at 10x EBITDA. The manager sees substantial hidden value across portfolio holdings.

Undervalued EV/EBITDA Multiples Hidden Value Discount

2023 Q4

Small Caps

Manager emphasizes microcap companies are historically inexpensive and undervalued relative to larger companies. Russell Microcap Index underperformed NASDAQ 100 by over 4600 basis points in 2023. Small-cap valuations are highly attractive versus large-cap based on EV/EBIT metrics.

Microcap Russell Valuation Underperformance Opportunity

Value

Portfolio companies trading at historically low valuation levels with long runway to rise in value. Manager sees significant discount between current trading multiples and appropriate franchise-level multiples for holdings like PBPB and SNCR.

Undervalued Discount Multiple Expansion Mispriced

Media

Significant exposure to media companies including SCOR (media measurement) and AREN (digital media platform with Sports Illustrated and other brands). AREN signed merger agreement with Bridge Media Networks backed by 5-hour Energy founder.

Digital Content Publishing Advertising Platforms

2023 Q3

Value

Manager emphasizes concentrated value investing using Graham and Dodd approach enhanced with constructive activism. Believes market is inefficient and many holdings are dramatically misvalued, trading at historically low valuations despite operational improvements. Cites David Einhorn's observation about enormous number of dramatically misvalued companies.

Value Activism Concentration Mispricing Inefficiency

Small Caps

Portfolio focused on small and micro-capitalization stocks which manager believes have become completely inefficient in valuing businesses based on three-year potential performance. Market for microcaps filled with inefficiencies and asymmetric risk/reward characteristics that can generate outsized returns with proper stock selection.

Small Caps Microcaps Inefficiency Asymmetric Concentration

Inflation

Manager believes inflation has peaked and doesn't expect another stair step function higher, particularly as year-over-year comparisons start from high inflation base. Fed rate increases already having dampening effect on economy, with mortgage rates rising from 2.7% to 7.5% in 10 months impacting housing market.

Inflation Fed Rates Housing Peak

2023 Q2

Small Caps

Fund focuses on substantially undervalued small, publicly traded companies with potential for significant turnarounds through constructive activism. Portfolio is highly concentrated in microcap names with catalysts expected to drive material appreciation.

Microcap Turnaround Activism Undervalued Concentration

AI

D-Wave Quantum position benefited from renewed interest due to its position in enabling artificial intelligence platforms, though this was not enough to offset declining positions elsewhere in the portfolio.

Quantum AI Platforms Technology

2023 Q1

Small Caps

Manager focuses exclusively on microcap stocks through concentrated portfolio of 7-10 positions. Believes microcap market is filled with inefficiencies and asymmetric risk/reward characteristics that allow for outsized returns when stock picking is correct. Views current environment as providing opportunities to invest in well-run businesses with significant upside.

Microcap Concentration Inefficiencies Asymmetric Valuation

Value

Fund maintains Graham and Dodd value focus, seeking companies trading at significant discounts to intrinsic value. Manager believes every stock owned has significant upside potential and cites examples like SCOR trading at 0.75x revenue when Nielsen sold for 4x revenue. Emphasizes valuation discipline and financial statement analysis.

Graham Dodd Discount Intrinsic Financial

Rates

Manager views current environment as return to normal where rates are higher than 0% and money isn't free. Believes Fed was too late removing quantitative easing and 0% rates from 2008 crisis. Expects stocks will have competition from bond market and multiples will contract as market can no longer rely on free money.

Fed Quantitative Easing Multiples Competition

Credit Stress

Discusses banking sector stress including Silicon Valley Bank failure due to asset-liability mismatch and classic run on bank scenario. Notes similar issues at Signature Bank and pressure on PacWest and Western Alliance. However, believes current situation is not financial Armageddon like 2008 as financial leverage doesn't exist like in the past.

Banking SVB Mismatch Leverage Systemic

Inflation

Manager believes inflation has already peaked and Fed rate hikes have had significant effect in lowering inflation. Views Fed as lagging indicator in combating inflation and notes inflation has eased from highs. Expects progress over coming quarters but acknowledges path will be bumpy.

Peak Lagging Progress Bumpy Easing

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Potbelly Corporation	Consumer Discretionary	Restaurants	Bull	NASDAQ	debt refinancing, expansion, Fast casual, Franchising, Restaurants, turnaround, Value	Login
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	ALTG	Alta Equipment Group, Inc.	Industrials	Trading Companies & Distributors	Bull	NYSE	Construction Equipment, Cyclical, Equipment dealer, Industrials, Material handling, profit-taking, Value	Login
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	SNCR	Synchronoss Technologies, Inc.	Information Technology	Application Software	Bull	NASDAQ	acquisition target, Catalyst, Cloud platforms, Software, technology, turnaround, Value	Login
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	IVAC	Intevac, Inc.	Information Technology	Technology Hardware, Storage & Peripherals	Bull	NASDAQ	Coating tools, Partnership, Qualification, Revenue visibility, technology hardware, Thin-film equipment, Vacuum deposition	Login
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Arena Group Holdings, Inc.	Communication Services	Interactive Media & Services	Bear	NYSE American	Bridge Loan, capital structure, debt maturity, leverage, media company, Refinancing Risk, Sports Illustrated	Login
Apr 30, 2023	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	D-Wave Quantum Inc.	Information Technology	Technology Hardware, Storage & Peripherals	Bear	NYSE	Debt facility, Going Concern, Liquidity crisis, Lockup agreement, Quantum Computing, Speculative, technology	Login
-	Fund Letters	180 Degree Capital Corp	SNCR	Synchronoss Technologies, Inc.	Information Technology	Application Software	Bull	NASDAQ	Board activism, Cloud computing, Equity, information technology, recurring revenue, SaaS, Software, turnaround, US	Login
-	Fund Letters	180 Degree Capital Corp	QMCO	Quantum Corporation	Information Technology	Technology Hardware, Storage & Peripherals	Bull	NASDAQ	Activism, Artificial Intelligence, data storage, Equity, information technology, strategic sale, technology hardware, turnaround, US	Login
-	Fund Letters	180 Degree Capital Corp	AREN	The Arena Group Holdings, Inc.	Communication Services	Interactive Media & Services	Bear	NYSE American	Communication Services, digital media, Equity, Governance, Interactive Media, Legal Issues, merger, Sports Illustrated, US	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Comscore, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	EBITDA margin, insider buying, Management Change, Measurement, Media Analytics, private equity, turnaround, Value	Login
-	Fund Letters	180 Degree Capital Corp	LTRX	Lantronix, Inc.	Information Technology	Communications Equipment	Bear	NASDAQ	Activism, Communications Equipment, Distribution Channels, Equity, information technology, IoT, Management Change, turnaround, US	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	comScore, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Activism, analytics, Corporate Governance, Data Assets, digital advertising, Media Measurement, multiple expansion	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Commercial Vehicle Group, Inc.	Consumer Discretionary	Auto Components	Bull	NASDAQ	Auto Components, commercial vehicles, Contract Renegotiation, Electric Trucks, growth, operating leverage, Value	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Potbelly Corporation	Consumer Discretionary	Restaurants	Bull	NASDAQ	activist, Capital-light, Consumer Discretionary, Fast casual, franchise, Re-franchising, Restaurant, turnaround	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Potbelly Corporation	Consumer Discretionary	Restaurants	Bull	NASDAQ	cash generation, EBITDA growth, Fast casual, Franchising, multiple expansion, Restaurants, Unit economics	Login
-	Fund Letters	180 Degree Capital Corp	PBPB	Potbelly Corporation	Consumer Discretionary	Restaurants	Bull	NASDAQ	Consumer Discretionary, Equity, Fast casual, Franchising, Restaurants, same-store sales, traffic growth, US	Login
-	Fund Letters	180 Degree Capital Corp	SCOR	comScore, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Board activism, capital structure, Communication Services, digital advertising, EBITDA growth, Equity, Interactive Media, Media Measurement, US	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	The Arena Group Holdings, Inc.	Communication Services	Interactive Media & Services	Bull	NYSE American	advertising revenue, Content Platform, digital media, merger, Sports Illustrated, turnaround, value creation	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	D-Wave Quantum, Inc.	Information Technology	Technology Hardware, Storage & Peripherals	Neutral	NYSE	Commercialization, Legacy Investment, Lockup Period, Quantum Computing, revenue guidance, SPAC, technology	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Arena Group Holdings, Inc.	Communication Services	Interactive Media & Services	Bull	NYSE American	Ad revenue, digital media, operating leverage, platform, Rollup Strategy, Russell Index, Sports Illustrated, Traffic Synergies	Login
-	Fund Letters	180 Degree Capital Corp	SNCR	Synchronoss Technologies, Inc.	Information Technology	Software	Bull	NASDAQ	Cloud storage, Free Cash Flow, multiple expansion, recurring revenue, SaaS, telecommunications, turnaround	Login
-	Fund Letters	180 Degree Capital Corp	ALTG	Alta Equipment Group, Inc.	Industrials	Trading Companies & Distributors	Bull	NYSE	Construction Equipment, Dividend initiation, EBITDA guidance, Equipment Distribution, Execution, Management Quality, Material handling	Login
-	Fund Letters	180 Degree Capital Corp	ALTG\|AREN\|CVGI\|PBPB\|QBTS\|QMCO\|SCOR\|TURN	Quantum Corporation	Information Technology	Technology Hardware, Storage & Peripherals	Bear	NASDAQ	activist, data storage, hyperscalers, management issues, Proxy Contest, supply chain, tape storage, turnaround	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

Potbelly Corporation

Consumer Discretionary

Restaurants

Bull

NASDAQ

debt refinancing, expansion, Fast casual, Franchising, Restaurants, turnaround, Value

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

ALTG

Alta Equipment Group, Inc.

Industrials

Trading Companies & Distributors

Bull

NYSE

Construction Equipment, Cyclical, Equipment dealer, Industrials, Material handling, profit-taking, Value

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

SNCR

Synchronoss Technologies, Inc.

Information Technology

Application Software

Bull

NASDAQ

acquisition target, Catalyst, Cloud platforms, Software, technology, turnaround, Value

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

IVAC

Intevac, Inc.

Information Technology

Technology Hardware, Storage & Peripherals

Bull

NASDAQ

Coating tools, Partnership, Qualification, Revenue visibility, technology hardware, Thin-film equipment, Vacuum deposition

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

Arena Group Holdings, Inc.

Communication Services

Interactive Media & Services

Bear

NYSE American

Bridge Loan, capital structure, debt maturity, leverage, media company, Refinancing Risk, Sports Illustrated

Apr 30, 2023

Fund Letters

180 Degree Capital Corp

D-Wave Quantum Inc.

Information Technology

Technology Hardware, Storage & Peripherals

Bear

NYSE

Debt facility, Going Concern, Liquidity crisis, Lockup agreement, Quantum Computing, Speculative, technology

Fund Letters

180 Degree Capital Corp

SNCR

Synchronoss Technologies, Inc.

Information Technology

Application Software

Bull

NASDAQ

Board activism, Cloud computing, Equity, information technology, recurring revenue, SaaS, Software, turnaround, US

Fund Letters

180 Degree Capital Corp

QMCO

Quantum Corporation

Information Technology

Technology Hardware, Storage & Peripherals

Bull

NASDAQ

Activism, Artificial Intelligence, data storage, Equity, information technology, strategic sale, technology hardware, turnaround, US

Fund Letters

180 Degree Capital Corp

AREN

The Arena Group Holdings, Inc.

Communication Services

Interactive Media & Services

Bear

NYSE American

Communication Services, digital media, Equity, Governance, Interactive Media, Legal Issues, merger, Sports Illustrated, US

Fund Letters

180 Degree Capital Corp

Comscore, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

EBITDA margin, insider buying, Management Change, Measurement, Media Analytics, private equity, turnaround, Value

Fund Letters

180 Degree Capital Corp

LTRX

Lantronix, Inc.

Information Technology

Communications Equipment

Bear

NASDAQ

Activism, Communications Equipment, Distribution Channels, Equity, information technology, IoT, Management Change, turnaround, US

Fund Letters

180 Degree Capital Corp

comScore, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Activism, analytics, Corporate Governance, Data Assets, digital advertising, Media Measurement, multiple expansion

Fund Letters

180 Degree Capital Corp

Commercial Vehicle Group, Inc.

Consumer Discretionary

Auto Components

Bull

NASDAQ

Auto Components, commercial vehicles, Contract Renegotiation, Electric Trucks, growth, operating leverage, Value

Fund Letters

180 Degree Capital Corp

Potbelly Corporation

Consumer Discretionary

Restaurants

Bull

NASDAQ

activist, Capital-light, Consumer Discretionary, Fast casual, franchise, Re-franchising, Restaurant, turnaround

Fund Letters

180 Degree Capital Corp

Potbelly Corporation

Consumer Discretionary

Restaurants

Bull

NASDAQ

cash generation, EBITDA growth, Fast casual, Franchising, multiple expansion, Restaurants, Unit economics

Fund Letters

180 Degree Capital Corp

PBPB

Potbelly Corporation

Consumer Discretionary

Restaurants

Bull

NASDAQ

Consumer Discretionary, Equity, Fast casual, Franchising, Restaurants, same-store sales, traffic growth, US

Fund Letters

180 Degree Capital Corp

SCOR

comScore, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Board activism, capital structure, Communication Services, digital advertising, EBITDA growth, Equity, Interactive Media, Media Measurement, US

Fund Letters

180 Degree Capital Corp

The Arena Group Holdings, Inc.

Communication Services

Interactive Media & Services

Bull

NYSE American

advertising revenue, Content Platform, digital media, merger, Sports Illustrated, turnaround, value creation

Fund Letters

180 Degree Capital Corp

D-Wave Quantum, Inc.

Information Technology

Technology Hardware, Storage & Peripherals

Neutral

NYSE

Commercialization, Legacy Investment, Lockup Period, Quantum Computing, revenue guidance, SPAC, technology

Fund Letters

180 Degree Capital Corp

Arena Group Holdings, Inc.

Communication Services

Interactive Media & Services

Bull

NYSE American

Ad revenue, digital media, operating leverage, platform, Rollup Strategy, Russell Index, Sports Illustrated, Traffic Synergies

Fund Letters

180 Degree Capital Corp

SNCR

Synchronoss Technologies, Inc.

Information Technology

Software

Bull

NASDAQ

Cloud storage, Free Cash Flow, multiple expansion, recurring revenue, SaaS, telecommunications, turnaround

Fund Letters

180 Degree Capital Corp

ALTG

Alta Equipment Group, Inc.

Industrials

Trading Companies & Distributors

Bull

NYSE

Construction Equipment, Dividend initiation, EBITDA guidance, Equipment Distribution, Execution, Management Quality, Material handling

Fund Letters

180 Degree Capital Corp

Quantum Corporation

Information Technology

Technology Hardware, Storage & Peripherals

Bear

NASDAQ

activist, data storage, hyperscalers, management issues, Proxy Contest, supply chain, tape storage, turnaround

TICKER	COMMENTARY
TURN	180 Degree Capital Corp. ended the first quarter of 2025 with a net asset value per share of $4.42. Change in NAV of -4.7% to $4.42 as of March 31, 2025, was primarily the result of expenses related to our Business Combination.
ACNT	377,750 shares owned at 12/31/24, sold 10,890 shares during quarter, ended with 366,860 shares. Value increased from $4,223,245 to $4,644,448 plus $133,731 cash received, total return of 13.1%.
AREN	992,992 shares owned throughout quarter with no trading activity. Value increased from $1,330,609 to $1,717,876, generating a 29.1% return.
AVNW	New position of 10,200 shares purchased during quarter for $210,768, ending value of $195,534, resulting in -7.2% return.
BCOV	Completely exited position of 1,053,580 shares, selling for $4,688,431 versus $4,583,073 starting value, generating 2.3% return.
CVGI	410,000 shares held throughout quarter with no trading activity. Value declined from $1,016,800 to $471,500, resulting in -53.6% return.
IVAC	Completely exited position of 1,046,597 shares, selling for $4,293,141 versus $3,558,430 starting value, generating 20.6% return.
LTRX	Increased position from 656,139 to 668,711 shares by purchasing 12,572 shares for $34,949. Value declined from $2,703,293 to $1,665,090, resulting in -39.2% return.
MAMA	New position of 20,000 shares purchased during quarter for $122,552, ending value of $130,200, generating 6.2% return.
PBPB	1,091,206 shares held throughout quarter with no trading activity. Value increased from $10,279,161 to $10,377,369, generating 1.0% return. Also holds 80,605 warrants that declined 6.9%.
RFIL	472,506 shares held throughout quarter with no trading activity. Value increased from $1,847,498 to $2,216,053, generating 19.9% return.
SCOR	400,451 shares held throughout quarter with no trading activity. Value increased from $2,338,634 to $2,751,098, generating 17.6% return.
SNCR	854,788 shares held throughout quarter with no trading activity. Value increased from $8,205,965 to $9,308,641, generating 13.4% return. Also purchased 12,000 rights that generated 114.9% return.

TICKER

COMMENTARY

TURN

180 Degree Capital Corp. ended the first quarter of 2025 with a net asset value per share of $4.42. Change in NAV of -4.7% to $4.42 as of March 31, 2025, was primarily the result of expenses related to our Business Combination.

ACNT

377,750 shares owned at 12/31/24, sold 10,890 shares during quarter, ended with 366,860 shares. Value increased from $4,223,245 to $4,644,448 plus $133,731 cash received, total return of 13.1%.

AREN

992,992 shares owned throughout quarter with no trading activity. Value increased from $1,330,609 to $1,717,876, generating a 29.1% return.

AVNW

New position of 10,200 shares purchased during quarter for $210,768, ending value of $195,534, resulting in -7.2% return.

BCOV

Completely exited position of 1,053,580 shares, selling for $4,688,431 versus $4,583,073 starting value, generating 2.3% return.

CVGI

410,000 shares held throughout quarter with no trading activity. Value declined from $1,016,800 to $471,500, resulting in -53.6% return.

IVAC

Completely exited position of 1,046,597 shares, selling for $4,293,141 versus $3,558,430 starting value, generating 20.6% return.

LTRX

Increased position from 656,139 to 668,711 shares by purchasing 12,572 shares for $34,949. Value declined from $2,703,293 to $1,665,090, resulting in -39.2% return.

MAMA

New position of 20,000 shares purchased during quarter for $122,552, ending value of $130,200, generating 6.2% return.

PBPB

1,091,206 shares held throughout quarter with no trading activity. Value increased from $10,279,161 to $10,377,369, generating 1.0% return. Also holds 80,605 warrants that declined 6.9%.

RFIL

472,506 shares held throughout quarter with no trading activity. Value increased from $1,847,498 to $2,216,053, generating 19.9% return.

SCOR

400,451 shares held throughout quarter with no trading activity. Value increased from $2,338,634 to $2,751,098, generating 17.6% return.

SNCR

854,788 shares held throughout quarter with no trading activity. Value increased from $8,205,965 to $9,308,641, generating 13.4% return. Also purchased 12,000 rights that generated 114.9% return.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2025

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Value

Private Credit

Small Caps

Private Credit

Small Caps

Value

Small Caps

Value

Small Caps

Rates

Value

Small Caps

Value

Media

Value

Small Caps

Inflation

Small Caps

AI

Small Caps

Value

Rates

Credit Stress

Inflation

Investor Pitches

Current Portfolio as of ( 31st March 2025 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Kevin Rendino Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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180 Degree Capital Corp