Gould Investment Partners, a small-cap growth equity boutique, will be wound down in March.
In an interview, Richard H. Gould, chairman, president and chief investment officer, said he launched a new firm, Spitfire Investment Partners, last October, with “a bigger tool box,” free of institutional long-only constraints, to run a global, long-short equity fund — the Spitfire Investment Fund.
Mr. Gould set up Gould Investment Partners in April 2004, negotiating an exit for his small-cap growth equity team from Greenville Capital Management, which boasted a seven-year track record that was outperforming its Russell 2000 benchmark by roughly 1,200 basis points a year.
Even with growth equity out of favor for much of the past decade, that long-term track record is still more than 400 basis points ahead of the benchmark, he said. Still, the spike in market volatility over the past few years further limited demand for the type of “pure small-cap growth” strategy offered by Gould Investment Partners, Mr. Gould said.
In June 2009, Russell Investments began dropping Gould Investment Partners as a subadviser in favor of firms with more conservative approaches, Mr. Gould noted. That move contributed to the decision to wind down the firm in favor of a new long-short equity platform, he said.
According to eVestmentAlliance, Gould Investment Partners had client assets of roughly $110 million as of June 2009.