Finsbury
Growth
and
Income
trust
(FGT)
manager
Nick
Train
is
watching
some
of
the
UK’s
most
disappointing
flotation
companies
for
buying
inspiration,
the
star
fund
manager
confirms
in
an
exclusive
interview
with
Morningstar.
During
the
full
conversation,
which
will
be
published
on
Monday,
Train
says
that
there
could
be
investment
opportunities
among
UK
companies
that
floated
in
2020
and
2021
for
his
UK-focused
equity
portfolio.
“There
was
a
flurry
of
IPOs,
new
issues
on
the
London
market
back
in
2020
and
2021.
A
whole
slew
of
digital
businesses,
almost
all
of
which
have
been
very,
very
disappointing
as
share
prices,
because
they
came
overly
hyped”,
he
says.
“But
again,
there
are
some
nuggets
there,
we’re
sure,
and
that’s
where
we’re
doing
quite
a
lot
of
work
at
the
moment”.
Among
the
list
of
firms
whose
initial
public
offerings
disappointed
investors
was
Deliveroo
(ROO),
whose
shares
floated
at
£3.90.
They’re
now
worth
just £1.19.
During
the
interview,
the
joint
founder
of
Lindsell
Train
discussed
investing
in
companies
with
strong
digital
strategies,
his
trust’s
recent
underperformance,
and
why
the
London
stock
market
remains
out
of
favour
with
growth
companies.
He
says
one
of
the
obvious
reasons
the
heavyweight
constituents
of
the
FTSE
100
are
not
exposed
to
the
wealth-creating
themes
that
are
driving
the
global
economy
today.
“That’s
a
shame,
but
it
is
what
it
is”,
he
says.
“The
question
is:
is
there
enough
entrepreneurialism
and
ambition
in
the
UK
corporate
sector
to
over
time
allow
new
companies,
new
industries,
listed
along
the
London
market,
to
become
bigger
and
bigger
components
of
the
index?
That’s
what
needs
to
happen”.
“Arm
(ARM),
if
it
was
listed
in
London,
would
now
be
the
third-
or
fourth-
biggest
company
in
the
UK
stock
market.
That’s
history
now,
we
can’t
turn
that
back.
But
that’s
what
the
UK
stock
market
needs,
more
businesses
like
Arm
being
listed
in
London
and
working
their
way
up
the
FTSE
100
in
terms
of
size”,
Train
says.
“Global
investors
need
to
look
outside
the
US
for
companies
that
can
give
them
access
to
these
digital
trends,
because
it’s
very
hard
to
argue
that
US
data
businesses
are
undervalued.
He
adds,
amid
a
recent
bout
of
underperformance:
“I
can’t
offer
anything
more,
I
don’t
think,
than
blood,
sweat
and
tears”.
To
hear
more
about
the
trust’s
underperformance
issues,
the
goal
of
Train’s
concentrated
“buy-and-hold”
investment
strategy,
the
old
and
new
stocks
he
believes
in
and
how
he
navigates
trends
like
AI,
stay
tuned
for
the
full
conversation
on
Monday.
Watch
our
trailer
video
above
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