The Vox Markets Podcast 2142: The Exchange with Paul Hill & Nick Hawthorn
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Jul 14, 2025 Nick Hawthorn, a seasoned UK fund manager at Downing, shares his insights on navigating the volatile equity market. He discusses the importance of cash flow and strategic adaptability, particularly in the mid-cap sector. Dive into his analysis of 11 stocks, including InSpecs' competitive challenges and Kitwave's recent struggles. Hawthorn unpacks implications of AIM stocks transitioning to main markets and highlights future growth opportunities in companies like Volex and Eagle Eye, showcasing his keen eye for investment potential.
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Cash Flow Drives Investment Strategy
- Nick Hawthorn focuses on cash flow and good value companies for steady returns.
- He targets compounders growing 15-25% annually at sub-10x PE to limit downside and gain upside.
Respond Quickly to Portfolio Shocks
- Reassess your investment thesis immediately after a portfolio shock.
- Engage actively with management or sell if recovery isn't feasible.
Inspecs Turnaround Story
- Nick describes Inspecs' eyewear business as complex with stagnant top line.
- They see value worth 2-4x current price via management change and customer growth.