Downing Strategic Micro-... Share Discussion Threads

[topvest] 08/4/2024 09:39

I've exited my tiny holding. Unfortunately, for those outside a tax wrapper the special dividends are destroying value. Thank you Milkwood! Then again, it might have done us a favour given Downing LLP's unique ability to turn everything into a value trap! There is only a 10% discount to net asset value and it won't tak the long to burn through that.
I see that Judith MacKenzie had to suspend outflow from her open ended fund as well. It looks like game over for her small cap ambitions. I know its been a difficult market, but the record has been poor.

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[topvest] 05/4/2024 19:47

What a shambles this has become. Only potential upside I was hoping for was the appearance of a white knight such as Harwood. Unfortunately, we got Milkwood and nobody wants them. So, Downing presided over 5 years of very poor value trap micro-cap investing, lose pretty much half of the money and then the Board can't even return capital because somebody gatecrashes the party. It's certainly a party with a bad hang-over! Fortunately, it was a tiny sub-scale investment for me and I hadn't been following it very closely. Just seen it on CityWire. Milkwood are not making any friends.

Compare this to Dunedin Enterprise Investment Trust plc and their wind-down - that one has been a gift that just keeps on giving!

Anyway, in my experience managed wind-downs don't often go very well particularly when illiquid investments are involved. Candover Investments plc was a disappointing one that I remember. Then there was Trust of Property Shares, if anyone remembers that one, which went on for years after breaking the investment trust rules, but eventually paid out after a legal case.

[zombiestocks] 05/4/2024 18:04

There are two Foresight VCT investors. The article only mentions one fund that sold out. I am going to ask around about whether Firesight is still invested and who makes that voting decision. Seems like a waste of time but I am extremely frustrated that they are effectively forcing me to sell.

[makinbuks] 05/4/2024 17:48

It does say that Foresight VCT sold to Milkwood, so the share registry may just be out of date.

[makinbuks] 05/4/2024 17:42

Here's the Citywire article

hxxps://citywire.com/investment-trust-insider/news/milkwood-bars-downing-strategic-wind-down-wants-to-run-fund-for-free/a2439725

[red ninja] 05/4/2024 17:21

Presumably Foresight.

[zombiestocks] 05/4/2024 17:15

But who decides how that VCT votes?

[red ninja] 05/4/2024 16:55

Foresight acquired some Downing VCTs which where invested in DSM

[zombiestocks] 05/4/2024 16:52

Milkwood can't go over 30% without triggering a full takeover. Unclear if they have the cash or desire to do that. Also the price has fallen so an offer at whatever they paid before would make no sense

[zombiestocks] 05/4/2024 16:51

If I google the Board of Foresight VCT 1, then I find a guy called Chris Allner, an executive director of Downing LLP. So it seems Board is just doing Downing's bidding. Pity.

[red ninja] 05/4/2024 16:50

I agree they see the big funds as the big holders who they would like to please.

I Milkwood get over 50% can they requisition a vote to replace the board ?

[zombiestocks] 05/4/2024 16:46

Well the vote was on B shares, not on dividend s. The board won't offer a dividend vote because they will probably lose it. My question is, if the board is not interested in the fortunes of retail investors (dividend proves it), then who are they answering to? Shareholder registry still shows Foresight - so maybe they are the ones the directors are working for.

[red ninja] 05/4/2024 16:27

Well that generous in the sense that they would save us the management fees at least on the fund, but still they moved a bit late and had just above 43% of the vote.

Thus they were out voted.

There is a chance that Milkwood if the move fast can buy enough to go over 50% and turn the tables on DSM.

[zombiestocks] 05/4/2024 16:14

There is an article out about Milkwood on City Wire. They offered to manage it for free!

[red ninja] 05/4/2024 16:10

ZombieStocks makes a valid point.

If you're a tax payer. It may be better to sell now and avoid the income tax unless you have are invested in schemes that can reclaim tax like VCT/EIS although admittedly those schemes entail more risk.

I've sold the small holding I had outside a tax rapper.

[red ninja] 05/4/2024 16:05

That's not quite accurate.

I think it's true to say that we seem to be winding down just when values are rising so yes I would have liked the fund to go on for a few years.

However, now so much is in cash. I'd rather have the cash than trust another fund manager.

[makinbuks] 05/4/2024 16:01

Disappointed as well that this shareholder issue hasn't been picked up on by the press

[makinbuks] 05/4/2024 15:57

Exactly, they've been fairly and squarely defeated in a shareholder vote. OK the vote was technically about the distribution method but the point being made by the shareholders is they don't want the winding up. Downing are just being obtuse now, unprepared to lose face. Shocking behaviour and again I ask what the independent directors are doing? Being influenced by those that appointed them to their nice little part time roles - the manager

[zombiestocks] 05/4/2024 14:23

But think about the tax consequences of getting your cash given back to you as income?

[4bluenose] 05/4/2024 14:17

Very inexperienced investor here got into this hoping that I would be well looked after by the fund manager, should have bailed ages ago but alas I did not.
£20k original investment, take the special DV and hope for the best or 57p now?

[zombiestocks] 04/4/2024 05:28

Pride definitely, but I am starting to wonder what skeletons they are hiding. Why are they so keen to push ahead regardless of the negative effects?

[makinbuks] 03/4/2024 22:43

Disgraceful behaviour. They acknowledge that the insto's who supported them sold out to Milkwood yet they still consider their course valid. Once again a fund run for the benefit of the manager and not the shareholders. Where are the independent directors? Someone is handing them a solution on a plate yet pride makes them carry on

[weatherman] 03/4/2024 22:33

I see Norman B is rising after DSM has sold its stake down, now to 1% of portfolio.

[cousinit] 03/4/2024 21:36

I suspect they may be acting swiftly as Milkwood likely buying more and may soon have effective control on an ordinary vote. Might we see a meeting requisition to aim to replace the current board?