180 Degree Capital Corp., an investment management firm, recently released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The quarter was rough for the portfolio, which lost 5.8% compared to a 5.3% increase for the Russell Microcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
180 Degree Capital highlighted stocks like ComScore, Inc. (NASDAQ:SCOR) in the second quarter 2023 investor letter. Headquartered in Reston, Virginia, ComScore, Inc. (NASDAQ:SCOR) is an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms. On August 17, 2023, ComScore, Inc. (NASDAQ:SCOR) stock closed at $0.7400 per share. One-month return of ComScore, Inc. (NASDAQ:SCOR) was 17.13%, and its shares lost 63.00% of their value over the last 52 weeks. ComScore, Inc. (NASDAQ:SCOR) has a market capitalization of $69.186 million.
180 Degree Capital made the following comment about ComScore, Inc. (NASDAQ:SCOR) in its second quarter 2023 investor letter:
“ComScore, Inc. (NASDAQ:SCOR) is a similar story in that the market continues to discount the same news over and over and over again. Generally speaking, SCOR’s common stock has gone from over $5.00 to a 52-week low of $0.63 because its Board of Directors has thus far failed to act on suggestions that we and other investors have independently provided to them that we believe can reverse the trend of the shareholder destruction that has occurred under their watch. Our activism can be seen in many ways; sometimes in public letters to SCOR and other times it occurs behind the scenes. Our intention is always to be constructive and collaborative with the companies we own.
In the case of SCOR, we started with a sense of collaboration regarding our ideas for the company, but came to realize that its Board was being dismissive and unresponsive. We got back the usual “thank you for your letter, we will share it with the Board,” and then no action or only partial immaterial action would be taken. We realized quickly that the Board was supremely arrogant and seemingly lost with regards to how to create value for all stakeholders of SCOR and have instead been solely focused on creating value for preferred stockholders and themselves. The worst of the worst is the lead Independent Director, Brent Rosenthal, who has completely failed and has overseen a stock price that has declined 98% since his involvement, while at the same time receiving millions of dollars in compensation for his service as a failed Board member. The Board finally reduced its compensation by an average of 26% in 2023, but it remains above market, and the preferred stockholders are clipping coupons on their preferred stock and the board fees paid to some of SCOR’s Board who are also employees of those firms. The Board has taken small steps when more substantial action is immediately required. We have told the Board how this would play out for the common stock if they continue along their do-nothing path. We take no solace in having been right in our analysis. We just never thought they wouldn’t do anything to attack the capital structure and show better alignment amongst all stakeholders…” (Click here to read the full text)
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ComScore, Inc. (NASDAQ:SCOR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held ComScore, Inc. (NASDAQ:SCOR) at the end of second quarter which was 18 in the previous quarter.
We discussed ComScore, Inc. (NASDAQ:SCOR) in another article and shared the list of best one-dollar stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
