Quantcast MI Downing UK Micro-Cap Growth Fund | Downing

MI Downing UK Micro-Cap Growth Fund

The Fund invests in a concentrated portfolio of 25-30 UK listed companies at the smallest end of the UK equity market. These companies typically have a market capitalisation of below £150 million at the time of investment. The Fund harnesses Downing’s private equity heritage, developed over 30 years in seeking to drive market-beating returns.

Key points

  • As a value investor, we aim to unlock value in smaller businesses by backing aligned managers of good businesses at the right price.
  • The market’s valuation of micro-cap companies is inefficient, allowing diligent investors like us to identify hidden gems.
  • As shareholders, our long-term perspective and commitment help each management team to achieve their goals.


Why we’re different

We employ a ‘private equity style’ investment process with the aim to manage risk and drive returns for our investors. Our focus on proprietary research and rigorous due diligence means we can understand the businesses in which we invest to the highest degree. We typically create value in these businesses through improved strategy, corporate governance, operations or balance sheet efficiency.

Our high conviction approach is reflected in our portfolio construction, helping us to add value over the long term. We don’t invest in a company until we are completely comfortable in taking a position. It may take up to 18 months before we invest, but we believe that this thorough and careful discipline enables us to identify strategic investments that can provide better risk-adjusted returns over the long-term.


Our typical investment process

Set out below is our typical investment process for the Downing UK Micro-Cap Growth Fund.



Meet the Managers

Judith MacKenzie


Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

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