Michael Zimmerman left Steven Cohen‘s SAC Capital Advisors in 2005 to found his own investment firm – Prentice Capital Management LP – in New York. At SAC he traded retail and consumer stocks for 5 years. He has continued to focus on these markets after founding his own firm. Zimmerman’s main fund, Prentice Capital Partners, invests in public stocks and corporate debt, a strategy that proved to be not very successful, at least in Zimmerman’s case. In 2008, the fund registered an 88% loss. Zimmerman has decided to start fresh and created a new hedge fund – Prentice Capital Management. It is a long/short fund that invests only in publicly traded stocks. Zimmerman tends to focus on undervalued companies that can gain in value by making changes in the management, strategy or capital structure of the company.