Apr 9, 2020 - Economy

A good month for one "black swan" hedge fund

This illustration shows a ladder made of a dollar bill

Illustration: Aïda Amer/Axios

Universa Investments, the "black swan" hedge fund, had a pretty good March.

Why it matters: While the coronavirus pandemic isn't really a black swan — a lot of people knew such a thing would come at some point — the slump in the markets was severe enough that the fund's out-of-the-money options trades suddenly became extremely profitable.

The state of play: The hedge fund, which is designed to act as a hedge against unexpected market dislocations, gained 3,612% last month.

  • The fund is advised by Nassim Nicholas Taleb, the options trader turned author.

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