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Alternative Market Briefing

New activist fund targets European small and mid-caps

Monday, January 22, 2024

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B. G., Opalesque Geneva for New Managers:

A new manager has just launched a fund with a flexible structure and a focus on long-term value investing and strong engagement, to take advantage of myopic markets and investor restraints.

Clearway Capital was founded in late 2021 and is based in Frankfurt, Germany. Prior to founding Clearway, Gianluca Ferrari built and led the activist investment practice at Shareholder Value Management AG, a €3bn+ investment company also based in Frankfurt. During his tenure, SVM became one of the most "active" activist investors in the European small and midcap space. He also authored the first book on value investing in the Italian language.

The Fund's objective is to compound capital over the long term while leaving a positive impact on society, says Ferrari in a letter to investors seen by Opalesque.

"Every decision we make - both within the portfolio and within Clearway as a firm - is made with this objective in mind, starting with deciding how to ensure that our investment approach can withstand the test of time.

I believe that the most reliable way to future-proof an investment strategy is to focus on areas of the market that are structurally inefficient and invest in them in ways that are difficult to replicate. Our strategy marries two permanent market inefficiencies - time-hor......................

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