After a decades-long career in finance and short-selling, Nitin K. Sachetireleases his inaugural book, DOWNSIDE PROTECTION: Process and Tenets for Short Selling in All Market Environments (June 7, 2019/$30.00 hardcover) where he reveals his previously, never discussed process for identifying and profiting from failing companies while protecting one’s portfolio. Sacheti initially walks through his overarching tenets to source and diligence great short opportunities and further spells out his process through eight case study chapters.
“While most short-selling books discuss salacious tales of frauds like WorldCom or Enron, I believe such shorts are few in number and hard to identify, a-priori. Instead, my tenets isolate a different type of short: the singles, doubles and triples that occur more regularly and create a high batting average for an entire portfolio rather than a single home-run which I believe is the best short-selling strategy,” said Nitin K. Sacheti, founder of Papyrus Capital Management and author of the book.
“Today, due to increased volatility, boom and bust bubbles, overpriced story stocks and financial crisis driven by over-leverage, one can make a prudent case that you can protect your portfolio and even seek a profit by engaging in short-selling. DOWNSIDE PROTECTION, which provides us with process and tenets for short-selling in all market environments is a must read for all asset managers, traders, and investors,” said Joseph J. Grano JR, Former Chairman & CEO of UBS Financial Services in his foreword to the book.
Sacheti begins the book with an introduction on how his career has shaped his investment process, describes his tenets for sourcing and diligencing shorts in Chapter 1 and discusses previous shorts in the following case-study chapters. He shares his steps in a stream of consciousness from sourcing the short to a conclusion. Rather than reporting historical facts in hindsight, which rarely uncovers the steps to identify a great short, Sacheti illustrates the situation as it plays out, so that the reader can follow each step and replicate Sacheti’s success. At the end of the book, Sacheti provides counterexamples that passed the initial diligence phase but which he refrained from shorting because they contradicted certain tenets, offering the reader further process insight.
About the book
Title: DOWNSIDE PROTECTION: Process and Tenants of Short Selling in All Market Environments
Authors: Nitin K. Sacheti
Pub Date: June 7, 2019
Publisher: PC Media
Price: $30.00 hardcover
About the author
Nitin K. Sacheti is the Founder and Portfolio Manager of Papyrus Capital, a long/short equity fund where he utilizes his short-selling tenets to protect downside for his investors.
Prior to founding Papyrus, Mr. Sacheti was a Senior Analyst/Principal with Equity Contribution at Charter Bridge Capital where he managed the firm’s investments in the technology, media and telecom sectors as well as select consumer investments. Previously, Mr. Sacheti was a Senior Analyst at Cobalt Capital, managing the firm’s technology, media and telecom investments and at Tiger Europe Management.
Mr. Sacheti began his investment career in 2006 at Ampere Capital Management, a consumer, media, telecom and technology-focused investment firm, initially as a Junior Analyst, later becoming Assistant Portfolio Manager. He graduated from the University of Chicago with a BA in Economics and was a visiting undergraduate student in Economics at Harvard University.