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.
- 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