The Downing Strategic Micro-Cap Investment Trust is managed by the Downing Public Equity team. The Manager takes strategic stakes in companies it believes are undervalued despite having reached a transformational stage. It does so after executing a private equity style due diligence process. The Manager is prepared to be constructively active and engaged in its involvement. This differentiates it from the majority of other small and micro-cap investment trusts.
Dedicated team of micro-cap specialists focused on unlocking value
The Downing Public Equity team is headed by Judith MacKenzie and consists of four investment managers and an investment operations manager. This is one of the larger dedicated teams of micro-cap specialists (managing this quantum of monies) in the UK, and the team focuses on first hand research. The concentrated portfolio allows the team to devote more time to each investment. This ensures quality over quantity in terms of idea generation and investment opportunity.
Strategic stakes to unlock value
Investments are appraised according to a strict value methodology and are combined with private equity techniques. The team believes this approach can unlock greater shareholder value over the long term. The Managers aim to maximise the effect of its influence by holding strategic positions of around 3% - 25% of a company’s equity.
Experienced Board committed to managing the premium/discount
The Manager has access to over 100 years of private equity experience within Downing LLP, and is overseen by an operationally experienced Board which it communicates with regularly. The Board is committed to managing the premium/discount at which the trust trades, under normal market conditions, using a combination of issuance of new shares and share buy-backs.