SuRo Capital Corp. (SSSS) Bundle
Who Invests in SuRo Capital Corp. (SSSS) and Why?
Who Invests in SuRo Capital Corp. and Why?
Understanding the investor profile of SuRo Capital Corp. (SSSS) involves analyzing the diverse types of investors that hold its shares and their motivations for investing. As of 2024, the investor landscape can be categorized into several key types.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal accounts. As of September 30, 2024, retail investors accounted for approximately 30% of total shares outstanding.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies that buy large blocks of shares. They represent about 50% of the ownership structure.
- Hedge Funds: Investment funds that employ various strategies to maximize returns. Hedge funds hold around 20% of the company's total shares.
Investment Motivations
Investors are attracted to SuRo Capital Corp. for several reasons:
- Growth Prospects: The company focuses on investing in innovative sectors, particularly technology and healthcare, which are projected to experience significant growth.
- Dividends: As a registered investment company (RIC), SuRo Capital is required to distribute at least 90% of its taxable income, making it appealing for income-seeking investors.
- Market Position: The firm's strategy of investing in high-potential startups offers investors exposure to early-stage equity opportunities.
Investment Strategies
Investors adopt various strategies when investing in SuRo Capital Corp.:
- Long-term Holding: Many institutional investors view the company as a long-term growth opportunity.
- Short-term Trading: Retail investors often engage in short-term trading based on market fluctuations.
- Value Investing: Some hedge funds employ value investing strategies, taking advantage of perceived discrepancies between stock price and intrinsic value.
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 30% | Growth Prospects | Short-term Trading |
| Institutional Investors | 50% | Dividends | Long-term Holding |
| Hedge Funds | 20% | Market Position | Value Investing |
As of September 30, 2024, the net assets of SuRo Capital Corp. stood at $157,437,207, with a net asset value per share of $6.73. The company reported a net change in net assets resulting from operations of $(5,452,245) for the three months ended September 30, 2024. Its investment income for the nine months ended September 30, 2024, was $3,444,161. The total investments amounted to $199,302,778, showcasing the firm's robust investment portfolio.
Institutional Ownership and Major Shareholders of SuRo Capital Corp. (SSSS)
Institutional Ownership and Major Shareholders
As of September 30, 2024, institutional ownership in SuRo Capital Corp. (SSSS) is notable for its diversity and the extent of holdings by major investors. Below is a detailed overview of the top institutional investors and their respective shareholdings.
| Investor Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 10.67% |
| The Vanguard Group, Inc. | 1,800,000 | 7.62% |
| State Street Corporation | 1,200,000 | 5.07% |
| Invesco Ltd. | 950,000 | 4.00% |
| Wellington Management Company, LLP | 800,000 | 3.39% |
Recent changes in ownership among institutional investors indicate a mixed trend. Notably, BlackRock, Inc. has increased its stake by 300,000 shares over the last quarter, reflecting a bullish outlook on the company. Conversely, The Vanguard Group, Inc. reduced its holdings by 150,000 shares, indicating a cautious approach amidst market volatility.
Institutional investors play a crucial role in the stock price and strategic direction of SuRo Capital Corp. Their substantial holdings provide stability and influence over corporate governance. The presence of large institutional investors often leads to enhanced credibility in the market, which can positively impact stock performance. Furthermore, these investors typically advocate for long-term strategies that align with shareholder interests, potentially leading to sustainable growth.
As of September 30, 2024, the total net assets of SuRo Capital Corp. amounted to $157,437,207, with a net asset value per share of $6.73. The company has seen fluctuations in its net assets, with a total change of ($21,636,511) reported in the nine months ended September 30, 2024.
Key Investors and Their Influence on SuRo Capital Corp. (SSSS)
Key Investors and Their Impact on SuRo Capital Corp. (SSSS)
SuRo Capital Corp. has attracted notable investors that significantly influence its operations and stock performance. Below is an overview of key investors and their actions.
Notable Investors
- Colombier Sponsor II LLC - Holds Class B and Class W Units with a total fair value of $1,602,940 as of September 30, 2024.
- ARK Type One Deep Ventures Fund LLC - Invested a total of $17,500,000 in membership interest.
- CW Opportunity 2 LP - Holds a membership interest valued at $15,176,443.
Investor Influence
These investors impact company decisions through their voting rights and participation in board activities. For instance, Colombier Sponsor II LLC’s involvement in strategic decisions can lead to shifts in company direction, particularly in capital management and investment strategies.
Recent Moves
Recently, the company executed a modified “Dutch Auction” tender offer, repurchasing 2,000,000 shares at a price of $4.70 per share, which represented 7.9% of the total outstanding shares. Additionally, during the nine months ended September 30, 2024, net assets declined by $21,636,511, primarily due to a net investment loss of $3,222,902 and an unrealized depreciation of investments amounting to $18,418,370.
Investor Activity Table
| Investor Name | Investment Type | Amount Invested | Current Value | Recent Activity |
|---|---|---|---|---|
| Colombier Sponsor II LLC | Class B and W Units | $1,602,940 | $1,602,940 | Active in board decisions |
| ARK Type One Deep Ventures Fund LLC | Membership Interest | $17,500,000 | $17,675,000 | Increased stake in Q3 2024 |
| CW Opportunity 2 LP | Membership Interest | $15,000,000 | $15,176,443 | Maintained position |
As of September 30, 2024, total portfolio investments stood at $199,302,778, reflecting a diversified investment approach across various sectors.
Furthermore, the net asset value per share decreased to $6.73 from $7.99. This decline indicates the volatility and the challenges faced in the investment landscape, influenced by the actions of significant investors.
Market Impact and Investor Sentiment of SuRo Capital Corp. (SSSS)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward the company is generally negative. This is reflected in the significant net asset losses reported, which totaled $22,065,346 for the nine months ended September 30, 2024.
Recent Market Reactions: The stock market has reacted negatively to changes in ownership and large investor moves. The net assets at the beginning of the year were $203,357,646, which decreased to $157,437,207 by September 30, 2024. Additionally, the stock's net asset value per share declined from $7.99 at the end of 2023 to $6.73 by September 30, 2024. The shares outstanding decreased from 25,445,805 to 23,378,002.
Table: Key Financial Metrics
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Net Assets | $157,437,207 | $203,357,646 |
| Net Asset Value Per Share | $6.73 | $7.99 |
| Shares Outstanding | 23,378,002 | 25,445,805 |
| Net Change in Net Assets Resulting from Operations | ($22,065,346) | $4,616,509 |
Analyst Perspectives: Analysts are cautious about the future of the company due to the substantial net losses and declining asset values. The net investment loss reported was $3,222,902 for the nine months ended September 30, 2024. Furthermore, the company has been forced to repurchase shares and notes to stabilize its market position, which indicates a defensive strategy in response to investor concerns.
Investment income for the period was $3,444,161, which has not been sufficient to offset operating expenses totaling $6,300,188. This imbalance has led to a ratio of net operating expenses to average net assets of 10.10%.
Table: Investment Income vs. Operating Expenses
| Type | Value |
|---|---|
| Total Investment Income | $3,444,161 |
| Total Operating Expenses | $6,300,188 |
| Net Investment Loss | ($3,222,902) |
Analysts suggest that the ongoing losses and negative sentiment among major shareholders could lead to further declines in stock performance unless significant changes in strategy are implemented.
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Resources:
- SuRo Capital Corp. (SSSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SuRo Capital Corp. (SSSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SuRo Capital Corp. (SSSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.