Downing Strategic Micro-... Share Discussion Threads

[zombiestocks] 03/4/2024 19:33

How can it make sense to return capital as income to shareholders? Board blames Milkwood (not Covid this time) - why the rush as opposed to finding a better way?

[weatherman] 03/4/2024 19:01

Special dividend of 38p then.

[eeza] 30/3/2024 11:40

DSM's own factsheets for the last 6 months give:
1 Oct 23 2.18%
1 Nov 23 6.79%
1 Dec 23 7.98%
1 Jan 24 6.36%
1 Feb 24 5.88%
1 Mar 24 6.52%

[weatherman] 30/3/2024 11:10

Market Screener has Downing LLP holding 19,268,976 shares, 6.374% of co.

[makinbuks] 30/3/2024 09:57

Unfortunately thats been the story of this fund since the very start. They have constantly tripped over poor investment decisions and utter inability to influence companies in a PE manner. Good chat, poor execution

[zombiestocks] 29/3/2024 14:52

It's one thing not to know and get surprised by FA... But buying more in a final fit of wild speculation before you close the fund? Shocking

[makinbuks] 29/3/2024 08:23

DM clearly oblivious. Makes a mockery once again of their claim to apply a PE style to investing

[makinbuks] 29/3/2024 08:22

Of course not. I imagine the dispute was pre 2019 resulting in them ceasing the relationship at that point. Why its taken this amount of time to bring a legal case I don't know. Possibly getting legal funding? That takes some time to assess. Odd as well that the contract wouldn't allow easier resolution routes, mediation, arbitration, etc. Could be those have been ongoing and finally exhausted

[weatherman] 28/3/2024 21:27

Did it really take them 5 years to realise there were problems and start legal proceedings ?

[zombiestocks] 28/3/2024 20:41

FA shareholder registry shows Downing is buying more. A lot more. What on Earth are they thinking.

[red ninja] 28/3/2024 20:26

DSM have been saying they expect the FA. sale to go through by June. Thus allowing the
50% of NAV return by end of June.

[makinbuks] 28/3/2024 19:08

OK thanks, and the claim goes from 2011 to 2019 so clearly didn't come out of the blue

[makinbuks] 28/3/2024 18:00

Fireangel was 3.5% at the half year (see report) reflecting the 7.4p bid. Surely it can't be 6.5% now?

[weatherman] 28/3/2024 17:04

Fireangel is 6.5% of portfolio, or about 4p per DSM share - so far the loss to NAV is approx. less than half of that, less than 2p - it will show up on Tuesday's reported NAV.

[zombiestocks] 28/3/2024 16:46

Oof that Fireangel hurts

[cousinit] 28/3/2024 15:56

Fire Angel doesn't seem to have got the memo.

I sold out (again) when the discount was under 10% and no sign of any residual payment from the Real Good Food administration adding to the NAV. I'd hoped that there may have been a modest kicker (maybe 2-3p) from that.

[zombiestocks] 28/3/2024 15:46

Unless Milkwood can catalyze some interest and maybe inject some new money to get it to 50m+... Trying to find their track record/AUM

[makinbuks] 28/3/2024 14:44

But to your point, I would take Rockwood shares in return for the rest for example.

[makinbuks] 28/3/2024 14:43

Yes although if Downing distribute half in cash its even less likely to be viable

[zombiestocks] 28/3/2024 14:30

It's too small for Downing, too painful and too public with so many mistakes. I hope Milkwood and/or the board find some way to keep it going rathet than forced selling at the bottom.

[makinbuks] 28/3/2024 11:57

That's it exactly. They launched this fund and proved themselves to be very poor investors, or influencers, in a couple of specific cases but they were also extremely unlucky in their timing and have endured a dreadful macro background. So with the trust sub optimal in size and no way to increase it, they threw in the towel. This is all in marked contrast to Rockwood Whose shares trade at a consistent premium (but which was equally badly managed by their previous manager). So basically Downing as a manager decided they don't want it any more. I understand that, but then they take the lazy way out to liquidate and sell. They're sole interest is as asset managers. They don't care about shareholders

[weatherman] 28/3/2024 11:47

I guess you could argue that DSM are breaking up their portfolio at the bottom of the cycle, which is not the best option. They were trading at NAV of above 80p a while ago, now 65p. Milkwood clearly see some value in this stock - wonder what their plans are?

[makinbuks] 28/3/2024 11:05

Well well, Milkwood up to 28% gives them >25% powers over EGM's special resolutions etc. Could be very interesting, but I believe the next vote is simply for a distribution to shareholders so 50.1% only needed. Maybe they want to force a meeting to change the manager. No doubt there will be some onerous clauses in the contract covering that eventuality that our expensive independent directors will have approved

[makinbuks] 26/3/2024 09:35

Yes I enjoyed the Arix ride but nothing like that on offer here. I had hoped that someone like Rockwood might have done something to offer shareholders a continuance option