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Black Swan fund

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A Black Swan fund is an investment fund based on the black swan theory that seek to reap big rewards from sharp market downturns. They became more known after the financial crisis of 2007–2008.

One example of a "Black Swan" fund is Universa, which was founded by Mark Spitznagel and advised by Nicholas Taleb.[1][2] During the 2007–2008 financial crisis the fund posted returns of over 100%.[3] In August 2015, Universa Investments made more than $1 billion in profits in one week, representing a 20% YTD return.[4]

References

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  1. ^ Chung, Juliet (30 August 2015). "A 'Black Swan' Fund Makes $1 Billion". The Wall Street Journal. Retrieved October 31, 2015.
  2. ^ "Universa Investments Nets $1B On Black Monday". Valuewalk.com. Retrieved October 31, 2015.
  3. ^ Stevenson, Alexandra. "A Hedge Fund Manager Who Doesn't Mind a Losing Bet". DealBook. Retrieved 2018-02-21.
  4. ^ Chung, Juliet. "Nassim Taleb's 'Black Swan' fund made $1 billion this week". MarketWatch. Retrieved 2018-02-21.
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