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 2007-2008 financial crisis.

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[edit]

  1. ^ "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.