On this week’s podcast we had the opportunity to have a wide ranging discussion on the markets with Fraser Thorne, CEO of Edison Group, a specialist in equity research for UK-listed companies, especially in the small caps sector. He is a former fund manager at Newton (later acquired by Royal, and tells us the rationale behind the decision to launch Edison Group in 2003.
Edison also carries out investor relations activity in the UK. It claims credit, for example, for introducing UK fund manager Nick Train to Manchester United as an investment. It also provides companies with consulting services.
On the Podcast
It’s great to have someone like Fraser Thorne on The Armchair Trader’s podcast as he has an excellent and wide ranging perspective on the development of the equity markets in the UK and globally. We talk about the evolution of equity research since banks exited the area, and the overall health of the City of London and the UK financial sector.
We also discuss Brexit and its impact on the London Stock Exchange – what will be the impact on the listings regime in London and will we see more IPOs in London as companies seek out a trading venue that sits outside the EU? Can London fill that niche?
Another issue we analyse on the podcast is the wave of speculative retail trading money that hit the market after the pandemic started, which we have seen in action with the gyrations in the GameStop share price. Thousands of new traders have opened accounts in the last 12 months and are now buying and selling stocks actively. Is this a good thing and do they represent a new dynamic and opportunity in the market for smaller companies?
The podcast also goes into some of the hot sectors over the last 12 months and whether these can keep up their momentum. Thorne has worked with a number of the leading cannabis stocks to have listed in London and remains a fan of the cannabis and CBD story.
ESG factors remain a big issue for smaller companies, and the noise around environmental impact is only going to get louder. This is especially true for the mining and oil/gas sectors. Edison publishes research on several companies in this sector, and Thorne provides us with his perspective on how companies in these areas can work harder to demonstrate both their necessity for the economy and how they can seeking to mitigate their impact on the planet. He also talks about what Edison is doing to help companies to engage with investors on this issue.