PioneerPath Capital veteran Gina Goodman's firm—Reid Street Capital—has recently launched a hedge fund.
The new vehicle—which is a continuation of the strategy Goodman managed at PioneerPath—is a sector focused, equity long-short hedge fund, with an emphasis on strong, steady returns and an appreciation for risk management underscored by low net exposure. The fund deploys assets, mainly in the U.S., by investing in consumer-related companies seeking to maximize absolute returns and limit volatility through active risk management.
The fund returned an estimated 69 basis points net of fees for the month of September, vs. the S&P 500 which was up 3%.
“We started deploying capital during the first week of the month and by the end of the month we were fairly grossed up. We had an average of about 30 positions in the portfolio, and we expect to add another 5-10 positions over the next couple of months,” the firm wrote in an investor letter. “We were positioned long gaming, lodging and leisure stocks and were net short retail stocks. We were also modestly long home improvement and we had select positions in consumer staples and non-consumers.”
Before hanging out her own shingle in 2012, Goodman spent five years investing in public and private consumer equities as an analyst at S.A.C. Capital Management (mid 2003–mid 2005) and as a senior analyst and managing director at Prentice Capital Management (mid 2005–early 2008).
In addition to Goodman, the New York-based Reid Street Capital employs two other investment professionals and a senior controller. It utilizes SS&C GlobeOp as its administrator, KPMG as its auditor, J.P. Morgan as its custodian, Ropes & Gray for legal services, and Jefferies as its prime broker.