Here’s how one ‘black swan’ investor is protecting his $5 billion fund against a market crash that ‘won’t be pretty’

Here’s how one ‘black swan’ investor is protecting his $5 billion fund against a market crash that ‘won’t be pretty’
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“Black Swan” ready, or at least with a plan, Universa Investments founder Mark Spitznagel describes his approach to prepping for the unforeseeable.

And the biggest “black swan” is… That’s how Mark Spitznagel, the founder of Universa Investments, described his approach to navigating market risk in an interview with Vanity Fair that published Thursday. Basically, he says he makes far out-of-the-money bets that cost little but deliver huge when it all comes crashing down. “Really explosive downside protection is really the only risk mitigation that’s able to move the needle for people, because it’s the only risk mitigation that doesn’t cost you as you are waiting for it to happen,” Spitznagel said. “When the market crashes, I want to make a whole lot and when the market doesn’t crash, I want to lose a teeny, teeny amount.  […]

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