Hedge fund, Gatemore Capital, has cut its investment in Cheltenham fashion retailer Superdry.

The firm has reduced its stake to 2.94%, from 4.7% in February last year, to realise a profit on its investment. That's equivalent to £6.9 million.

Since the activist investor disclosed its stake in the fashion retailer in July 2020 the share price has doubled.

At the time of its investment, Liad Meidar, managing partner at Gatemore, said Superdry had shown 'strong resilience despite a challenging trading environment' and added: "We are confident the business is poised to benefit from the trend towards casual wear which has been accelerated by Covid-19."

Co-founder Julian Dunkerton has been involved in an at times acrimonious bid to improve the brand's trading after he returned to the board in 2019.

The firm announced pre-tax profits of £12.6 million on sales of £556 million last year as Dunkerton set about shedding the brand's 'dad fashion' image and refocussing on a younger customer.

Superdry opened a new concept store  in Cheltenham in December.