SuRo Capital Corp (SSSS) Q3 2024 Earnings Call Highlights: Strategic AI Investments and ...

GuruFocus.com11-09

Net Asset Value (NAV): $157.4 million or $6.73 per share as of September 30, 2024. AI Investments: $55 million invested in AI companies, representing 18% of gross assets at quarter's end, increasing ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSuRo Capital Corp (SSSS) Q3 2024 Earnings Call Highlights: Strategic AI Investments and ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 03:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/suro-capital-corp-ssss-q3-190325266.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Asset Value (NAV): $157.4 million or $6.73 per share as of September 30, 2024.\nAI Investments: $55 million invested in AI companies, representing 18% of gross assets at quarter's end, increasing ...</p>\n\n<a href=\"https://finance.yahoo.com/news/suro-capital-corp-ssss-q3-190325266.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SSSS","symbol_name":"Sutter Rock Capital Corp.","start_time":0,"source_url":"https://finance.yahoo.com/news/suro-capital-corp-ssss-q3-190325266.html","article_id":"2482443443","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482443443","pubTimestamp":1731092605,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Asset Value : $157.4 million or $6.73 per share as of September 30, 2024.AI Investments: $55 million invested in AI companies, representing 18% of gross assets at quarter's end, increasing to 23% including post-quarter investments.Cash Available for Investment: Approximately $32.7 million, representing 14% of gross assets.Top Five Positions: CoreWeave, Learneo, OpenAI, Blink Health, and ServiceTitan, accounting for 47% of the investment portfolio at fair value.PublicSquare Shares Sold: 359,845 shares for approximately $1 million, with a realized gain of $732,000.Share Repurchase Program: Expanded to $64.3 million, with $25 million remaining authorized.Investment Portfolio Allocation: 26% in Software as a Service, 21% in AI infrastructure and applications, 16% in Consumer Goods and Services.Realized Losses: $6.6 million from OneValley, Inc. and $6.8 million from SPBRX.A: Mark Klein, Chairman and CEO, highlighted that SuRo Capital has invested approximately $65 million in private com","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SSSS":"Sutter Rock Capital Corp."},"translate_title":"SuRo Capital Corp(SSSS)2024年第三季度收益看涨期权亮点：战略人工智能投资和...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SSSS":1},"content_text":"Net Asset Value (NAV): $157.4 million or $6.73 per share as of September 30, 2024.\nAI Investments: $55 million invested in AI companies, representing 18% of gross assets at quarter's end, increasing to 23% including post-quarter investments.\nCash Available for Investment: Approximately $32.7 million, representing 14% of gross assets.\nTop Five Positions: CoreWeave, Learneo, OpenAI, Blink Health, and ServiceTitan, accounting for 47% of the investment portfolio at fair value.\nPublicSquare Shares Sold: 359,845 shares for approximately $1 million, with a realized gain of $732,000.\nConvertible Notes Issuance: $25 million in 6.5% convertible notes due 2029, with potential for up to $75 million.\nShare Repurchase Program: Expanded to $64.3 million, with $25 million remaining authorized.\nInvestment Portfolio Allocation: 26% in Software as a Service, 21% in AI infrastructure and applications, 16% in Consumer Goods and Services.\nRealized Losses: $6.6 million from OneValley, Inc. and $6.8 million from SPBRX.\n\n\nWarning! GuruFocus has detected 1 Warning Sign with SSSS.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSuRo Capital Corp (NASDAQ:SSSS) has made significant investments in AI, with AI investments now representing 23% of their portfolio.\nThe company has invested approximately $65 million in sought-after private companies, including $55 million in AI companies.\nSuRo Capital Corp (NASDAQ:SSSS) has a balanced portfolio with late-stage companies like ServiceTitan, Canva, and Whoop, which are well-positioned for potential IPOs.\nThe company has successfully monetized public positions, generating realized gains, such as the sale of PublicSquare shares.\nSuRo Capital Corp (NASDAQ:SSSS) has a strong liquidity position with $39.5 million in liquid assets, including $32.7 million in cash.\n\n Negative Points \n\nThe company experienced a decrease in NAV per share from $6.94 to $6.73, driven by net realized losses and investment losses.\nSuRo Capital Corp (NASDAQ:SSSS) reported a realized loss of approximately $6.6 million from the sale of OneValley, Inc.\nThe company wrote off investments in Churchill Sponsor VII and YouBet Technology due to dissolutions.\nThere is a significant concentration risk, with the top five positions accounting for 47% of the investment portfolio.\nThe company faces risks associated with market volatility and uncertainties that could impact future performance.\n\n Q & A Highlights \nQ: Can you provide an overview of SuRo Capital's recent investments in AI companies? A: Mark Klein, Chairman and CEO, highlighted that SuRo Capital has invested approximately $65 million in private companies during the second half of 2024, with $55 million allocated to AI companies. Notable investments include OpenAI, CoreWeave, and VAST, which together represent a significant portion of their portfolio. These investments are part of SuRo Capital's strategy to capitalize on the growth of AI and provide shareholders access to leading AI companies.\nQ: What is the current status of SuRo Capital's portfolio and its positioning for future IPOs? A: Mark Klein mentioned that SuRo Capital's portfolio includes late-stage companies like ServiceTitan, Canva, Whoop, and Liquid Death, which are well-positioned for potential IPOs. The company believes these investments, along with their AI portfolio, create a balanced portfolio offering shareholders access to exciting private technology companies ahead of their potential IPOs.\nQ: How has SuRo Capital's NAV per share changed in the third quarter of 2024? A: Allison Green, CFO, reported that the NAV per share decreased from $6.94 in Q2 to $6.73 as of September 30, 2024. This decrease was primarily driven by a net realized loss on portfolio investments, net investment loss, and realized loss on the partial repurchase of 6% notes. However, it was partially offset by a net change in unrealized appreciation of investments and the impact of stock-based compensation.\nQ: What are the details of SuRo Capital's note repurchase and convertible note issuance programs? A: Allison Green explained that SuRo Capital's Board approved a note repurchase program for up to $35 million of 6% notes due 2026. Additionally, the company entered into a note purchase agreement for up to $75 million of 6.5% convertible notes due 2029. The proceeds from these notes will be used for repaying outstanding debt, making investments, and other corporate purposes.\nQ: How is SuRo Capital enhancing shareholder value through its share repurchase program? A: Allison Green stated that SuRo Capital's Board authorized a $4.3 million expansion to the share repurchase program, bringing the total to $64.3 million, and extended it through October 31, 2025. Since the program's inception, over 6 million shares have been repurchased, with approximately $25 million remaining authorized for future repurchases.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482443443"}