Larissa Adams interviews David Thornton, editor and owner of Growth Company Investor, in the latest Hardman Talks episode. David has spent 40 years in financial markets. For 30 years of his career he was an institutional fund manager at long-only, large institutional investment houses, such as Henderson, Prudential and Abbey Life. In that role he looked after portfolios mainly invested in big cap stocks.
His switch to small caps came in 2013 when he became editor of Red Hot Penny Shares, before moving on to Growth Company Investor in 2015 and ended up buying it himself. Thus, he has a unique insight among writers in the small cap world of having the macro perspectives of a big cap fund manager combined with the professional analytical skills needed to tackle individual companies. Many so-called commentators in the small cap world lack these skillsets.
In this interview, David shares his views on market trends, in particular, focusing on the shift from growth to value stocks. He also considers how recent company results announcements compare with previous guidance. Additionally, he talks about his personal approach to small cap investing. Finally, David reveals his top three small cap stocks to watch in 2022, and the investment reasoning behind those choices.
Growth Company Investor is a long-established monthly newsletter focused on small cap investing. It highlights the best opportunities amongst fast-growing AIM and fully-listed smaller company shares.