180 Degree Capital Corp., an investment management firm, recently released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund performed well in a challenging and bear market for microcap funds and was able to gain a +5.7% gross total return for the first quarter of 2023. The Russell Microcap Index returned a -2.9% for the same quarter. The gross total return of the fund since inception in 2017 was +243.6% compared to 31.8% return for the Index. The consumer discretionary, industrials, and information technology sectors were the positive contributors while the communication services sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.
180 Degree Capital Corp. highlighted stocks like D-Wave Quantum Inc. (NYSE:QBTS) in the first quarter 2023 investor letter. Headquartered in Burnaby, Canada, D-Wave Quantum Inc. (NYSE:QBTS) develops and deliver quantum computing systems, software, and services. On June 6, 2023, D-Wave Quantum Inc. (NYSE:QBTS) stock closed at $2.25 per share. One-month return of D-Wave Quantum Inc. (NYSE:QBTS) was 441.78%, and its shares lost 77.25% of their value over the last 52 weeks. D-Wave Quantum Inc. (NYSE:QBTS) has a market capitalization of $286.142 million.
180 Degree Capital Corp. made the following comment about D-Wave Quantum Inc. (NYSE:QBTS) in its Q1 2023 investor letter:
“D-Wave Quantum Inc. (NYSE:QBTS): QBTS entered 2023 with substantial doubt about the company’s ability to continue as a going concern due to its low cash balance and limited access to its equity line of credit due to the precipitous decline of its stock price. QBTS reported its Q4 2022 results while issuing lower than expected revenue guidance along with a new debt facility from its largest shareholder, PSP, to provide operating runway for at least a year based on current cash levels and burn. 180’s stock was subject to a lockup agreement, so it was not able to trade or hedge this position until February 5, 2023. From the expiration of the lockup through the end of the quarter, QBTS decreased NAV by $0.08 per share, or $0.8 million.”
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D-Wave Quantum Inc. (NYSE:QBTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held D-Wave Quantum Inc. (NYSE:QBTS) at the end of first quarter 2023 which was 8 in the previous quarter.
We discussed D-Wave Quantum Inc. (NYSE:QBTS) in another article and shared the list of biggest quantum computing companies in the world. In addition, please check out our hedge fund investor letters Q1 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.