This week Nick talks to Judith MacKenzie.

Judith joined Downing in October 2009, bringing with her extensive experience in venture capital and fund management. Prior to this, she was a partner at Acuity Capital, where she managed AIM-listed VCT and IHT investments, as well as a small-cap activist fund. Before Acuity, Judith spent nine years as a senior investment manager at Aberdeen Asset Management Growth Capital, where she co-managed five Aberdeen VCTs, focusing on technology and media investments across both public and private companies. In 2010, she founded Downing Fund Managers, the boutique investment division of Downing LLP. Judith currently serves as Chair of the Quoted Companies Alliance and holds active board roles in both private and public sectors.

Nick and Judith discuss her journey into finance, inspired by working in her parents’ small businesses in the Scottish Highlands. Her early exposure to economics and investing sparked a lifelong interest in smaller companies. She discusses her career progression from stockbroking to fund management, emphasising her focus on UK micro-cap and smaller companies through Downing’s IHT (Inheritance Tax) service. Judith explains the appeal of AIM-listed firms due to their tax benefits and potential for strong returns, highlighting a hands-on, diligent investment approach that mirrors private equity standards. She identifies three key types of companies she targets: value compounders, self-help businesses, and balance sheet leaders—mentioning Ramsdens, James Latham, and Flowtech as examples. Judith critiques the negative narrative around AIM, advocating for its role in supporting entrepreneurial growth and job creation. She expresses hope for a shift back to active investing and UK-focused capital deployment, especially in light of current global economic uncertainties and US-centric fund flows. 

Judith's book choice was:
Vassal State: How America Runs Britain by Angus Hanton

Judith's music choice was:
Human by The Killers

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