Gatemore Capital Management disclosed a 3.37% stake in the faux-Japanese retailer on Monday.
Superdry’s share price has 300-500% upside, a source familiar with Gatemore suggests, driven by significant growth in free cash flow over the next two years
Gatemore’s managing partner Liad Meidar said: “Superdry has shown strong resilience despite a challenging trading environment in recent months, and we are confident the business is poised to benefit from the trend towards casual-wear which has been accelerated by Covid-19.”
Meidar said he was “fully supportive” of Superdry founder Julian Dunkerton’s vision for the company, including returning the brand to its design-led routes and Superdry’s strong commitment to sustainability.
“We look forward to discussing our views further with the board, management, and other shareholders over the coming months,” he said.
Gatemore has butted heads with its investments before, with DX Group PLC (LON:DX.) said it was “disappointed” by the activist’s “disruptive” decision to requisition a general meeting in 2017, where it proposed the addition of four new directors to the board.
It also took a stake in Moss Bros last year before the retailer received a takeover bid earlier this year and in Majestic Wine, where it backed the strategy of moving wholly online.
Activity by activist investors in UK companies noticeably increased last year, though much of this was short-selling.