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.
$213 Million Total Assets Under Management as of January 2023. 1
1. This figure is an estimated and unaudited amount.
We are looking to partner with a highly select group of investors who share our beliefs.
We believe the highest IRR is attained near macro or idiosyncratic inflections. We wait for the inflection “trigger” to avoid value traps.
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.
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.
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.
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.
(e.g. Sector Underinvestment, Secular
Fund Flows, Government Policy)
(e.g. Fed Policy, Business Cycle,
Market Regime Change)
(e.g. Post-reorg, CEO Changes, Fallen Angels,
(e.g. Spin-offs, Busted M&A, 13D/Activist,
Merger securities, etc)
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.
Shorter-duration Event-Driven trading “self-funds” the longer-term inflections, providing liquidity in drawdowns