Published : 2 years ago, on 26/04/2023

Cleavemoor – Unleashing the power of people-centric investment

Interview with Ewan Mitchell, founder of Cleavemoor

Ewan Mitchell

1) Can you tell us about yourself and how Cleavemoor was created?

The foundation of Cleavemoor stems from the belief that an outstanding group of people is a lead indicator for an outperforming company. Yet, in our view, not enough investment funds give this the importance it warrants. My seven years at Barclays and being apart of the global number one Consumer Staples equity research team ignited my fascination in the consumer sector’s potential. However, there was a noticeable gap in the market for a fund that genuinely puts people first in its strategy and investment approach.

This led to the creation of Cleavemoor as an investment advisor that invests in businesses with high-quality intangible assets with a focus on the consumer sector. This vision and approach sets Cleavemoor apart in the industry.

2)What is your investment strategy?

Cleavemoor10, our flagship fund, was launched in January and deploys our proprietary Agile Horizon StrategyTM. This strategy blends liquid public equities with long-term high returning private equity investments. It is vertically focused on the consumer sector, leveraging to our niche expertise and experience. We designed this strategy to around our strengths and are able to offer a consumer fund that has the potential for very attractive returns whilst retaining flexibility through its increased liquidity.

Our consumer staples public equities positions are chosen to generate solid returns from the moment investors partner with us. Using our deep sector knowledge we take both long and short positions. The consumer staples sector is known for its stability and consistent demand for products, making it a lower-risk, higher-reward option for investors. These positions give us excellent liquidity allowing us to be more flexible than traditional funds.

We are always looking for exceptional intangible assets in the consumer space and this is a particular focus in our private equity investments. We look for comparatively strong gross margins, as a indicator of brand strength, is the foundation of excellent returns on operating capital and a strong cash flow. In our view, the consumer is increasingly looking for an authentic connection with aspirational brands with a genuine offering; the people able to achieve this are setup for success.

3)What have been some of Cleavemoor’s successes to date?

We have a robust pool of potential primary investments in rapidly expanding consumer businesses and are actively looking for investors to partner with us to take these relationships to the next level. 

A good example of this, is our investment in Puresport as its leading institutional investor. Puresport is the leading CBD and natural wellness brand in the UK and Cleavemoor identified significant potential in the company’s strong leadership, solid business strategy, and immense capacity for growth in the market. The UK’s cannabinoid industry was valued at £690 million at the end of 2021 and is now the second largest market after the US.

One of the major attractions for companies with whom we work is access to Cleavemoor’s Portfolio Advisory Group, allowing our portfolio companies access to a well-connected network of seasoned professionals, including long-standing industry advisors, consultants, and non-executive directors.

4)What makes Cleavemoor unique?

The Cleavemoor10 fund is built on our Agile Horizon StrategyTM which blends a consumer sector long/short public equities portfolio with consumer private equity investments. This approach aims to deliver fast returns, stability, and liquidity, while also offering one-of-a-kind growth opportunities in the long term. With a unique philosophy and backed by the analytical expertise of the Cleavemoor team, the company offers a new way of investing for clients.

At Cleavemoor, we believe that people are the driving force behind successful companies, and we prioritise them in our investment strategy. We believe that good leaders have the power to shape the success of a company at every level, and they are the critical component in our evaluation process.

We are confident that this unique approach, along with our experienced team, provides investors with a fantastic opportunity to achieve substantial returns. Despite economic and market uncertainty, the consumer sector remains a reliable and strong investment option, and we believe it will continue to perform well in uncertain times.

Cleavemoor Limited is an Appointed Representative of Panima Capital Management Limited (Firm Reference Number 653812) which is authorised and regulated by the Financial Conduct Authority.