Hermon says he is one of the fund managers that tends not to invest in loss-making 'blue sky idea' companies, but does not regard this as something for which he should be criticised.
He says: “In 2021 there were a lot of those companies that came to the market via an IPO in the UK. Two of those that did have gone bust already, and really it is remarkable that two companies that came to market in 2021 should be completely bankrupt now.
"We don’t see ourselves as running a quasi private equity fund, and really a lot of the companies that came to market in 2021 were not ready to be listed companies. I think some investors have scars from that period, which is shaping their attitude to IPOs now.
"I think the approach of wanting profits from companies has been vindicated since 2021.
"But I don’t think there is a structural problem with the UK market, I think it has just been cyclical, that companies haven’t listed here, and that will change."
David Thorpe is investment editor of FT Adviser
