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Sheriff Bartlett gave Red the first of the three targets: Pig Josh. Pig Josh is an ex-army explosives expert who joined professor Perry's circus.
When Red arrives at the fairgrounds where Pig Josh is supposedly spending time, he meets an English guy named Jack Swift, currently held captive in a cage.
For the first parts, just release Jack by shooting the red lever and then kill everything that looks like something that might move.
You don't need to use the gatling gun, but if you do you better clear the area from clowns first.
In my last walkthrough I believe I used a glitch to beat Pig Josh. This time I killed him fair and square: by sniping him in the back and hiding like a yellowbelly! That's the way the developers wanted the players to beat him, I guess.
If you didn't notice in the video, killing him is rather simple: shoot him in the back or his head, and keep shooting when he flinches. When you have to reload, run and hide behind something. Pig Josh will run to the spot you were when you shot him, but if you managed to hide, you're safe.
People criticize Red Dead's stealth aspects way too much based on how annoying the sneaking levels later on are.
During any chapter with any enemy (not just when it's preferred like with Pig Josh), if the area is suitable you can try hiding from enemies even during a gunfight. If they lose the sight of you and you've managed to go around them, they will start looking for you where they last spotted you. It's not always useful or even easy, but it sure is fun and occasionally might help you save a bit of health.
Do not try taking Pig Josh head on, as the minute he sees you he will cover his face and run at you. When he covers his face, he's immune to attacks from the front. When he's close enough, he will blow you up, and himself, usually throwing you so close to him that he can attack again and again. Also notice that this fatman is a lot faster than you.
I have heard that he might be able to spot you if he sees your shadow clearly. I have occasionally noticed that he does spot me for some odd reason even if I'm behind cover, but at least during this fight he did see my shadow but didn't spot me, so I don't know if it's true at all.