Papyrus Capital employs an intrinsic value approach aimed at absolute return longs and shorts across developed markets. Our differentiated construction is characterized by longer-term investments in well-managed businesses, layered with shorter-term opportunistic longs and enhanced by a selection of catalyst-driven short positions.
Founded by Nitin Sacheti in 2015, former Senior Analyst at Charter Bridge Capital, Cobalt Capital and Tiger Europe Management, Papyrus deviates from what we believe to be a flawed hedge-fund model, characterized by excess leverage, turnover, and misaligned fee structure.
We complement our deep and repeatable research process by “thinking like an owner” which allows us to more accurately estimate intrinsic value in our businesses, sustaining our temperament and providing an edge during periods of market dislocation.
We maintain a unique stance on risk management by avoiding leverage and holding a cash hedge to exploit market drawdowns and short-term shareholder volatility.
Papyrus believes that few great absolute return shorts exist as markets lend to rise in the long- run. We seek to generate an absolute return across 15-30 broken businesses. Our short exposure is dedicated to alpha rather than market hedges.
We believe the most optimal risk management approach is founded upon bottom-up analysis, position sizing, and cash. Our differentiated low gross exposure allows us to play offense during market dislocations.
Papyrus’ sourcing and investment diligence is deeply rooted upon a “feet on the street” approach. We view the combination of sentiment, technical awareness, and an informational edge as paramount to differentiating signal from noise.
Our three-bucket discipline provides us with a framework to filter best ideas from large universe with rigor around process and signal recognition. We invest in great owner/managers creating value over the long-run, timely mispriced opportunistic investments, and absolute return shorts.
We believe it is more prudent to underwrite and understand free cash flows over the lifecycle of a business, rather than short-term stock price fluctuations.