Short-Selling is not easy, especially over the past decade.
This approach offers the reader significant Downside protection against a long portfolio..
Instead, his 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.
While most short-Selling books discuss salacious tales of frauds like WorldCom or Enron, Sacheti believes such shorts are few in number and hard to identify, a-priori.
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.
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.
Sacheti shares his steps in a stream of consciousness from sourcing the Short to a conclusion.
He further spells out his Process through seven case study chapters.
In this book, Sacheti initially walks through his overarching Tenets to source and diligence great Short opportunities.
Nitin Sacheti, Founder and Portfolio Manager of Papyrus Capital has had success short-Selling in the current Market environment.
This changing Market dynamic (discussed in more detail in the book) has increased investor appetite for growth stocks, regardless of bottom-line earnings growth, rendering typical short-Selling techniques of shorting high multiple stocks inadequate today.
Since 2009, excessive liquidity has lifted the equity markets due to an increased supply of money from quantitative easing and a great rotation from bonds to equities as interest rates have declined, favoring passive instead of active investment management.
Short-Selling is not easy, especially over the past 8-10 years.
He further spells out his Process through seven case study chapters.
The author initially walks through his overarching Tenets to source and diligence great Short opportunities.
Short-Selling is not easy, especially over the past decade
