Our Business

Our Approach

Praetorian Capital is a hedge fund managed by Harris “Kuppy” Kupperman dedicated to seeking non-correlated, asymmetric returns in a benchmarked world. The actively-managed strategy seeks absolute returns through highly-concentrated investments exhibiting inflecting secular or cyclical tailwinds, and Event-Driven special situations.

Our Business

$302 Million Total Assets Under Management as of January 2024. 1

Inflection Investing

Event-Driven

1. This figure is an estimated and unaudited amount.

Our Core Beliefs

We are looking to partner with a highly select group of investors who share our beliefs.

Alpha at Inflections

We believe the highest IRR is attained near macro or idiosyncratic inflections. We wait for the inflection “trigger” to avoid value traps.

Flexibility

Modern hedge fund “style boxes” restrict Alpha and can lead to underperformance. We seek to shift with the tide and go where the Alpha goes to provide our investments a positive tailwind.

Concentration

We believe concentration leads to absolute outperformance. We seek to hold 6 to 12 of our “best ideas” and are agnostic about their monthly volatility.

Actively Managed and Unhedged

We believe hedges cost upside. Instead, we tactically trade Event-Driven situations (long and short) and utilize option strategies for non-correlated, short-term returns to augment our core portfolio holdings.

Inflection Investing

Praetorian seeks to build a portfolio of 6 to 12 asymmetric opportunities with multi-bagger potential and minimal downside through inflection investing. 

 These opportunities often arise from combinations of thematic tailwinds, cycle changes, company transformations, and idiosyncratic special situations where the intersection of value and an inflection “trigger” accelerate price discovery.

Macro Inflections

Thematic Tailwinds

(e.g. Sector Underinvestment, Secular
Fund Flows, Government Policy)

Cycle Changes

(e.g. Fed Policy, Business Cycle,
Market Regime Change)

Event-Driven Inflections

Company Transformations

(e.g. Post-reorg, CEO Changes, Fallen Angels,
Privatizations, etc.)

Idiosyncratic Special Situations

(e.g. Spin-offs, Busted M&A, 13D/Activist,
Merger securities, etc)

Event-Driven

Rather than reduce upside on our core inflection themes with hedges, Praetorian tactically trades shorter-duration Event-Driven special situations. Returns from trading these idiosyncratic special situations like busted M&A, bankruptcy exits, etc. “self-fund” the longer-term inflections and provide liquidity in drawdowns. Praetorian has a dedicated Event-Driven analyst and has built a robust research process that allows us to systematically track over 25 different types of events.

Positive Carry

Longer-term
Inflections

Event-Driven
Trading

Shorter-duration Event-Driven trading “self-funds” the longer-term inflections, providing liquidity in drawdowns