Downing Strategic Micro-Cap Investment Trust's (LON:DSM) Judith MacKenzie tells Proactive about her experience of investing in Micro-Cap companies for a 'zillion years' in which she pursues 'unloved, underneath the radar companies' to invest in and transform.
This process is five to seven years of investment horizon - but it results in shareholder value. MacKenzie says these companies need a little 'TLC' and Downing offers help for management to get through the tough times.
Their strategy is to look for a management team with 'skin in the game', who is really engaged and if certain qualities aren't already in the company, Judith explains how Downing is willing to get involved and create these attributes.
Downing is confident that right now they represent an excellent opportunity, with the discount to the NAV at 25.60% as of October 1st, meaning there is a double discount, which the Trust believes offers upside potential to value in the portfolio.