Gold Sail diversifies

The five Purdue University students who set up a hedge fund last year have become four and have diversified into other asset classes.

Managing partner Matt Garofalo told Opalesque that Gold Sail Capital had, in the last year, evolved into a full alternative asset management firm. "We have a public asset side, which runs our hedge fund; a private asset side, which runs the private equity and venture capital vehicles; and a real asset side, which runs our real estate portfolio and our upcoming real estate developments. To say the least, it's certainly been a heck of a journey, but we've grown the firm methodically," he said.

The multi-strategy hedge fund, properly incepted in July 2016, had a negative performance that year. But they changed managers in December and had a positive first quarter of 2017.

On the real estate side, they have grown a $3.5m portfolio that includes mainly single-family homes and duplexes. They are now working on a development project that will be worth an estimated $26.5m at completion. On the private equity side, the partners are managing stakes in several companies and have a few other projects in the pipeline.

The youngest of the five partners dropped out in November to focus on his academic work. "As unfortunate as it is to lose a partner, his departure from the team was a mutual decision that concluded on good terms," Garofalo said. Meanwhile, the firm uses a few interns from Purdue and the greater Lafayette area, and expects to hire employees sometime in the future.

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.