He first bought a modest 0.5 per cent allocation in Senior in 2007, when its share price was £1.20. The components manufacturer's main exposure is to commercial aerospace, particularly to Boeing and Airbus. Both those companies have very long order books, making it look attractive.
Since then it has not disappointed. Through good customer service and product innovation, the company is growing its value at an impressive rate, prompting Mr Harmon to up his allocation to a sturdier 2 per cent in recent months.
Senior has tripled its profits over the past six years and Mr Hermon is confident this will continue, given the structural cyclical factors in play.
Led by a chief executive he rates very highly, its management team is strong and has grown the business through good acquisitions over recent years, using the cash flow from aerospace activities.
And he believes it is still a cheap buy. The share price has climbed from £1.20 to £2 in five years but has been flatlining for around nine months in a steeply rising market.
"You're only paying 11.5 times earnings, which makes it very good value," he says. "I think there are concerns currently about the industrial markets globally, but Senior will come through pretty unscathed and it's good value."
Of course small caps do come with a significant level of risk. For Senior, the demise of the commercial aerospace market would be disastrous as it relies heavily on it. But Mr Hermon believes for that to happen would require a macroeconomic shock such as 9/11, which did affect demand in the sector. But since an event of this nature is unlikely, it still looks like a strong purchase.
*The last IC recommendation on Senior shares was Buy at 163p on 23 Jul 2012
View the IC fund tips.
Visit our funds and ETFs page for fund profiles, interviews with fund managers and the latest fund news.
View our top 100 funds list.
visible-status-Standard story-url-Shares I love Senior.xml