He's in the caves because he's a hobbit (a sort of recluse), and he gets his food/water from the water to his left (he's a keen fisherman). The PermaClothes he stole after it was accidentaly thrown out by Taylor Richards during a premisis change, shortly after he made a minor profit on the stockmarket (trading shares in JoltBomb Industries).
If you think I made that up... then you are right!
