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Read previewThe performance of hedge fund manager Harris Kupperman's Praetorian Capital Fund is proof that being pessimistic can pay off — even when the economy grows and stocks rise. ​​Since launching at the start of 2019, Kupperman's fund is up an astounding 891.1% net of fees through March 31. AdvertisementBesides budget headaches, the hedge fund manager is wary of escalating political tensions at home and abroad. How to build a crisis-resistant portfolioThe hedge fund manager's blueprint for game plan scoring gains in a shaky backdrop with persistent inflation centers around commodities. A-Mark has consistently generated mid-single-digit earnings per share in recent years, though the hedge fund manager said that could easily rise to $10 as interest in precious metals rises.
Persons: , Harris Kupperman's, , Kupperman, Washington, He's, there's, Precious Metals, Mark Organizations: Service, Capital Fund, Business Locations: cryptocurrencies, East, Ukraine, China
Prepare for volatility and chaos in 2024Kupperman's confidence in his hedge fund is inversely related to his outlook for the economy. "Recent geopolitical events, along with the collapse of bonds in many developed markets, seem likely to lead to an increase in overall market volatility," Kupperman wrote in his letter. If he's right about inflation, his hedge fund would be well-positioned to beat the market for a fifth consecutive year in 2024. "I do the same thing always, which is you buy cheap companies with really strong tailwinds and you hold 'em through the volatility," Kupperman said. For the last 18 months, Kupperman has been convinced that the future is in two commodities: oil and uranium.
Persons: Harris Kupperman isn't, Kupperman, I'm, it's, Wall, Valaris Organizations: Praetorian, Fund, Praetorian Capital Management, US, Uranium Trust Fund, Valaris, Tidewater Locations: Tidewater
Renewed optimism about the economy calmed demand concerns while expectations of the largest oil production cuts since 2007 started to sap supply. Saudi Arabia and its OPEC allies refuse to boost oil production, much to the chagrin of the US. And so that's why I think it's just really, really interesting. Boosting uranium production takes years, he added, so it may take years to fix the shortage. Oil-adjacent stocks are the second-largest part of the Praetorian Capital Fund, Kupperman said.
Persons: Harris Kupperman, Kupperman, it's, I've Organizations: Energy, OPEC, Praetorian Capital Management, Capital Fund, Uranium Trust Fund, Praetorian Capital Fund, drillers, Offshore Locations: Saudi Arabia, Kazakhstan, Uzbekistan, Russia, Ukraine
Investors should prepare for fiscal, banking, and energy crises, a hedge fund manager warned. And thanks to a strong performance in July, the $254 million hedge fund has risen 16.8% after fees in 2023. Oil prices came under pressure when government reserves were released, but Kupperman said that's not a viable long-term recipe for reasonable energy prices. He expects a massive spike in oil prices in either 2024 or 2025, which will greatly benefit companies tied to the commodity. The investing opportunity Kupperman said he's most excited about is uranium, which he's playing through the Sprott Physical Uranium Trust.
Persons: Capital's Harris Kupperman, he's, Harris Kupperman, Kupperman, , He's, he'll, we've, Macrotrends Banks, it's, that's, Joe, JOE Organizations: Praetorian Capital Management, Praetorian, Fund, Treasury, Uranium Trust, Energy, Florida Panhandle Locations: Kazakhstan, Uzbekistan, Russia, Ukraine, Florida
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