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WTG Praetorian!
- Thread starter uptik2000
- Start date
Quote from TradinMadMan:
You are making the wrong assumptions. I hope Prae speaks up. He knows trading not just bull markets.
Comparing him to Timmay is absurd. Quite laughable.
He may know it but given his age has never experienced it....and I mean no offense as I believe there are many bright young people who are quite capable of trading for a living..... however managing OPM over a long period of time is another level and only time will tell, you spend the rest of your life proving yourself over and over.
praetorian BACK--up 70% this year:
September was a bit disappointing for us in terms of performanceâyet yielded great
opportunities for future gains. On the disappointing side, market operations produced a loss of
15% on our trading capital amid a good deal of volatility. Until the final week of the month, we
had actually been sporting some very healthy gains. Then some open profits were reversed and
we realized one sizable loss. Trading produced a loss of 17%. The majority of the loss was the
result of a 32% loss booked on one position which we have owned for a number of months. This
one position had continued to decline, so I added to the position in the belief that I was correct.
This turned out not to be the case and we booked the loss near the end of the month. Every year I
seem to experience one or two severe lossesâthis was only the second one this year. Excluding
this loss, trading produced a gain of 15%.
1
The Standard & Poor's 500 Stock Index (the âS&P 500â) has been selected for comparative purposes because it represents an index typically
used to gauge the general performance of the U.S. securities markets. While the companies in which the Fund invests may be companies included
in the S&P 500, the use of this index is not meant to be indicative of the asset composition or volatility of the portfolio of securities held by any
of the investment vehicles managed by Praetorian Capital Management LLC. The S&P 500 Index is a broad-based measurement of changes in
stock market conditions. No implication should be drawn, therefore, that this index bears any direct relevance to the historic performance of the
type of investment vehicles managed by Praetorian Capital Management LLC.
Harris Kupperman, President e-mail: hkuppy@pracap.com
Premium selling produced a gain of about 2% which was a gain of 7% leveraged less than onefold.
There is a lack of good opportunities to write premium lately. When we donât get paid
adequately, we stop writing options. This may become a long-term trend unless volatility
increases.
For me, the most frustrating thing was that when we were still showing good gains on our trading
early in the month, we were heavy purchasers of securities. When our gains disappeared, we
were in the position where we had spent 40% of our trading capital purchasing positions. I do not
think this is a long-term problem, but I hate to see our trading capital decrease like this. I think it
was worth the risk of lower trading income for a few months as we were able to purchase the
majority of an offering done by Andean American Mining (AAG: Canada). We purchased shares
and warrants at a price that will look silly a few months from now when they finally close on
their debt financing. We also purchased a number of shares in other companies that I mentioned
to you in last monthâs letter. It looks as though gold is now breaking out to a new all-time high.
This should propel these shares higher. I saw this as our last real opportunity to buy such
horribly mispriced shares, and I acted. We can always earn more money tradingâbut we wonât
be able to ever again buy gold equities at ten cents on the dollar. Going forward, my focus is on
increasing our cash position.
Our long-term holdings were, in aggregate, up slightly this month, which offset losses in our
market operations. More significantly, I hear that the businesses continue to improve following
the collapse in economic activity earlier this year. In particular, our mining service companies
are now starting to get contracts again, after a nine-month hiatus. Simply getting enough business
to earn a slight profit should be enough for Aeroquest (AQL: Canada) to be valued at
replacement cost, which would be nearly triple its closing price at month end. I have a hunch that
we may be seeing those prices soonâespecially with the price of gold going higher.
On a final note, it has been nearly a year since I told partners that I thought it would be an
outstanding time to add to their capital accounts. Since the lows, our fund has nearly tripled in
value. I still think it is an excellent time to add capital. Many of the stocks we currently own are
too illiquid to purchase in any real size at current prices. My real fear is that new capital will
dilute us at the lows. Previously, I wanted to give investors a chance to double down with meâ
as I felt it was the right thing to do. Now, I want to protect our interests and ensure that we do not
get diluted in the future. Therefore, the last opportunity to add capital to your capital accounts
will be at the end of November. After that, the fund will be closed to new capital. I may reopen it
in the future, but my intention is to keep it closed and focus on returning our reduced-capital
position to the high-water mark. The smaller the fund is, the quicker that will happen.
Sincerely,
Harris Kupperman:.
The statements made in this document are the opinions of Harris Kupperman. Praetorian Capital Management LLC, the investment manager for
Praetorian Capital Investments LLC, Praetorian Offshore Investments Ltd., Praetorian Offshore Ltd., (collectively, the âPraetorian Fundsâ), has
arranged for Mr. Kupperman to provide these periodic updates to the Members and Shareholders of the Praetorian Funds. Mr. Kupperman offers
his perspective and opinions on world and local events, investment trends and themes, and economic and socio-political events and projections.
His perspective and opinions are presented solely as they relate to the possible impact
September was a bit disappointing for us in terms of performanceâyet yielded great
opportunities for future gains. On the disappointing side, market operations produced a loss of
15% on our trading capital amid a good deal of volatility. Until the final week of the month, we
had actually been sporting some very healthy gains. Then some open profits were reversed and
we realized one sizable loss. Trading produced a loss of 17%. The majority of the loss was the
result of a 32% loss booked on one position which we have owned for a number of months. This
one position had continued to decline, so I added to the position in the belief that I was correct.
This turned out not to be the case and we booked the loss near the end of the month. Every year I
seem to experience one or two severe lossesâthis was only the second one this year. Excluding
this loss, trading produced a gain of 15%.
1
The Standard & Poor's 500 Stock Index (the âS&P 500â) has been selected for comparative purposes because it represents an index typically
used to gauge the general performance of the U.S. securities markets. While the companies in which the Fund invests may be companies included
in the S&P 500, the use of this index is not meant to be indicative of the asset composition or volatility of the portfolio of securities held by any
of the investment vehicles managed by Praetorian Capital Management LLC. The S&P 500 Index is a broad-based measurement of changes in
stock market conditions. No implication should be drawn, therefore, that this index bears any direct relevance to the historic performance of the
type of investment vehicles managed by Praetorian Capital Management LLC.
Harris Kupperman, President e-mail: hkuppy@pracap.com
Premium selling produced a gain of about 2% which was a gain of 7% leveraged less than onefold.
There is a lack of good opportunities to write premium lately. When we donât get paid
adequately, we stop writing options. This may become a long-term trend unless volatility
increases.
For me, the most frustrating thing was that when we were still showing good gains on our trading
early in the month, we were heavy purchasers of securities. When our gains disappeared, we
were in the position where we had spent 40% of our trading capital purchasing positions. I do not
think this is a long-term problem, but I hate to see our trading capital decrease like this. I think it
was worth the risk of lower trading income for a few months as we were able to purchase the
majority of an offering done by Andean American Mining (AAG: Canada). We purchased shares
and warrants at a price that will look silly a few months from now when they finally close on
their debt financing. We also purchased a number of shares in other companies that I mentioned
to you in last monthâs letter. It looks as though gold is now breaking out to a new all-time high.
This should propel these shares higher. I saw this as our last real opportunity to buy such
horribly mispriced shares, and I acted. We can always earn more money tradingâbut we wonât
be able to ever again buy gold equities at ten cents on the dollar. Going forward, my focus is on
increasing our cash position.
Our long-term holdings were, in aggregate, up slightly this month, which offset losses in our
market operations. More significantly, I hear that the businesses continue to improve following
the collapse in economic activity earlier this year. In particular, our mining service companies
are now starting to get contracts again, after a nine-month hiatus. Simply getting enough business
to earn a slight profit should be enough for Aeroquest (AQL: Canada) to be valued at
replacement cost, which would be nearly triple its closing price at month end. I have a hunch that
we may be seeing those prices soonâespecially with the price of gold going higher.
On a final note, it has been nearly a year since I told partners that I thought it would be an
outstanding time to add to their capital accounts. Since the lows, our fund has nearly tripled in
value. I still think it is an excellent time to add capital. Many of the stocks we currently own are
too illiquid to purchase in any real size at current prices. My real fear is that new capital will
dilute us at the lows. Previously, I wanted to give investors a chance to double down with meâ
as I felt it was the right thing to do. Now, I want to protect our interests and ensure that we do not
get diluted in the future. Therefore, the last opportunity to add capital to your capital accounts
will be at the end of November. After that, the fund will be closed to new capital. I may reopen it
in the future, but my intention is to keep it closed and focus on returning our reduced-capital
position to the high-water mark. The smaller the fund is, the quicker that will happen.
Sincerely,
Harris Kupperman:.
The statements made in this document are the opinions of Harris Kupperman. Praetorian Capital Management LLC, the investment manager for
Praetorian Capital Investments LLC, Praetorian Offshore Investments Ltd., Praetorian Offshore Ltd., (collectively, the âPraetorian Fundsâ), has
arranged for Mr. Kupperman to provide these periodic updates to the Members and Shareholders of the Praetorian Funds. Mr. Kupperman offers
his perspective and opinions on world and local events, investment trends and themes, and economic and socio-political events and projections.
His perspective and opinions are presented solely as they relate to the possible impact
Quote from ambienCR:
On the disappointing side, market operations produced a loss of
15% on our trading capital amid a good deal of volatility. ....T
hen some open profits were reversed and
we realized one sizable loss.
....Excluding
this loss, trading produced a gain of 15%.
I nominate praetorian to be the new CFO of Citigroup
Quote from louderfaster:
Up huge size---however its gonna take returns of 900 to 1200% just to break even again. if anyone can do it, Prae can.
Have they started a new fund? I heard from very close sources, they lost upwards of 75-80% of their AUM and handed over whatever remaining holdings they had directly to their investors.