Equity Mates Investing Podcast Why most investors are looking in the wrong places - Frank Thormann | Schroders
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Sep 25, 2025 In this engaging discussion, Frank Thornmann, a Portfolio Manager at Schroders, shares his insights on identifying companies with a 'positive growth gap.' He highlights Netflix as a prime example of surprising growth through strategic investments. Frank also critiques the short-sightedness of markets, emphasizing opportunities in Europe that many investors overlook. He discusses the benefits of long-term investing versus short-term trading and explains how AI's potential is being selectively integrated into business strategies, focusing on practical examples like Meta.
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Listening For Side Remarks
- The team meets companies, competitors and suppliers to spot offhand remarks that reveal overlooked competitive moves.
- Frank described listening for side comments that direct them to explore what a rival is doing well.
Microsoft's 'Seat At The Table' Advantage
- Frank recounted how Microsoft used its enterprise relationships to displace Zoom with Teams and grow revenue.
- That example shows how distribution and customer access can trump the initial product lead.
Size Positions By Growth Gap And Risk
- Weight positions by combining the size of the growth gap with a fundamental risk score to keep exposures risk-adjusted.
- Reduce position size for companies with higher fundamental risk even if the growth gap is large.