Crossword Genius

Famously, a crimson one was used for riding around here by gaucho, oddly (4)

Ross

I believe the answer is:

hood

I'm a little stuck... Click here to teach me more about this clue!

'famously a crimson one was used for riding around here' is the definition.
Although both the answer and definition are singular nouns, I can't understand how one could define the other.

'gaucho oddly' is the wordplay.
'HOOD' is hidden within the letters.
However, I am not sure how the hidden word is indicated.

'by' is the link.

Can you help me to learn more?

(Other definitions for hood that I've seen before include "this could provide cover" , "Capital cover" , "Thomas -, Eng. poet" , "Head covering or American car bonnet" , "A cover; Bismarck sank it, 1941" .)

I've seen this clue in The Irish Times.
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