The City is stitching up penny share investors

Shareholders in small-cap companies are missing out on some of the best deals around while favoured City insiders line their own pockets, says Tom Bulford.

As penny share investors, we're after one thing: big returns from investing in the most exciting companies on the stock market.

But what's galling is that small companies looking to raise fresh capital often offer new shares at knock-down prices to carefully selected City institutions. That means we're missing out on some of the best deals around. It happens a lot and I know lots of Penny Sleuth readers are spitting about it.

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Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.