Downing Strategic Micro-Cap Investment Trust PLC - London-based investment trust - Milkwood Capital, a long-term value-oriented fund manager based in Windsor, England, states it recently bought a near 17% stake in the company through the Milkwood Fund. Milkwood intends to vote against all resolutions tabled at the upcoming general meeting and plans to build its stake further. Milkwood believes that the UK equity market is materially undervalued, with this undervaluation even more pronounced in smaller-sized companies, which is where DSM's portfolio is invested. Believes DSM provides an excellent vehicle to explore this opportunity. In November, company says it has concluded that a managed wind down of its investment portfolio would be the best means of returning capital to shareholders. In December, it predicted that it will be able to return 50% of its current market value in cash to shareholders within the first half of 2024.
Current stock price: 63.00 pence, up 2.9% in London on Friday
12-month change: unchanged
By Jeremy Cutler, Alliance News reporter
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Downing Strate. (DSM)