Consumer sector focused fund employs a unique hedge fund
and private equity hybrid strategy
Funds seeks to optimise returns with a combination of a long/short equities
portfolio and long-term private equity investments
Cleavemoor, the consumer sector specialist investment advisor, is pleased to announce the launch of its headline fund, Cleavemoor 10. The fund is open ended, a segregated portfolio within a segregated portfolio company (“SPC”), registered in the Cayman Islands. Cleavemoor Limited is an appointed representative of Panima Capital Management Limited which is authorised and regulated by the Financial Conduct Authority.
The fund’s fundamentals are based on Cleavemoor’s unique proprietary Agile Horizon StrategyTM. This blends a consumer sector long/short public equities portfolio, which offers potentially faster returns, strong resilience and liquidity, with longer-term consumer private equity investments that provide unique opportunities with significant potential upside.
The fund, limited exclusively to professional investors, offers two share classes. Class A, which gives exposure to the long/short equities portfolio and the private equity investments, and Class B, which give exposure only to the long/short equities portfolio. With the Class A shares there is a five year lock up of the funds, with redemption options bi-annually, while with Class B, there is no such lock up and redemptions are available with 90 days’ notice.
The firm’s management team, led by founder Ewan Mitchell, formerly a member of the globally ranked Consumer Staples equity research team at Barclays Investment Bank, has identified a market gap for investors looking to balance long term, high growth potential of private equity investments with the greater liquidity and more immediate returns of the public markets.
Cleavemoor 10 is focused on companies in the listed consumer staples sector, which have consistently out-performed other sectors, often through economic downturns and equity market turbulence. Born out of Ewan Mitchell’s extensive equity research experience, Cleavemoor positions itself behind medium to long term trends, using macro indicators to identify quality, innovative brands and leans heavily into premiumisation.
In tandem with this, the fund’s management team has identified the vital importance of the senior management of a business in determining a brand’s success and stock value over a one-to-five-year period. Such insight is critical and is a key tenet of Cleavemoor 10’s strategy of identifying value.
Such an approach is of critical importance when considering private equity investments in businesses. Ewan, Chairman Tom Sarjant, a leading investment adviser, Nick Matthews, a director and a highly experienced c-suite marketeer, Campbell Mitchell, a director and ex-FMCG executive, and director and treasurer Mike Lloyd, are united in their belief that providing the opportunity and tools, as well as the funding for innovative, high growth potential private companies offers excellent investment opportunities.
In support of this, Cleavemoor’s Portfolio Advisory Group provides the fund’s individual portfolio companies access to a high-level network of experienced, including longstanding industry advisers, consultants, and non-executive directors.
The fund has a strong pipeline of potential initial investments in high growth UK consumer businesses and has already made an initial investment in Puresport and is its largest institutional investor. Puresport is the UK’s leading CBD and natural wellness brand, and Cleavemoor has capitalised on the firm’s strong management team, business plan, and high-growth market potential. The UK’s cannabinoid industry was valued at £690 million at the end of 2021 and is currently the second largest market outside of the US.
Cleavemoor 10 will be open for investment from 12th January 2023.
Ewan Mitchell, Founder of Cleavemoor, said: ‘I am very excited to launch our headline consumer-sector focused fund Cleavemoor 10. We firmly believe our unique investment strategy, fund structure, and strong team offer investors an excellent opportunity to secure robust returns from our hybrid long/short equities and private equity model. The consumer sector has always performed well in a broad variety of scenarios and with the current economic and market uncertainty it is again a sector on which investors should focus.”
Tom Sarjant, Chairman of Cleavemoor, added: “The fund management industry is always in need of new approaches and fresh strategies to look after investors’ needs, and I am pleased to say that Cleavemoor 10 offers this. It provides a unique new ethos and philosophy, backed by the rigorous, analytic capabilities of the team, anchored in our founder, Ewan Mitchell’s excellent track record and experience of covering the consumer staples sector.”
Grayson Hart, CEO Puresport, said:
“It was a hugely refreshing experience speaking to the team at Cleavemoor, the experience they have from a commercial perspective is second to none. It is exciting to work with an investor who is driven to help us grow sustainably and impactfully.”
