Black Swan Hyperinflation ETFdb Portfolio

Published on September 22, 2009 | Updated February 5, 2014

Portfolio Strategy

High Risk ToleranceShort Time HorizonLow Current IncomeThe Black Swan Hyperinflation ETFdb Portfolio is inspired by a fund managed by Universa Investments LP that is designed to profit in the event stimulus plans lead to runaway inflation. In 2008, hedge fund manager Mark Spitznagel teamed with Nassim Nicholas Taleb, who once taught Spitznagel at NYU and authored the wildly popular The Black Swan: The Impact of The Highly Improbable. The fund managed by Spitznagel and advised by Taleb made bets on bearish trends and volatility, resulting in a huge payday for investors.

“Black swan” alludes to the once-widespread belief that all swans are white. This theory was proved false when European explorers found black swans in Australia. A black-swan event now refers to something extreme and highly unexpected. In his book, Taleb argued that almost all major scientific discoveries, historical events, and artistic accomplishments were Black Swan Events – completely unexpected but with significant ramifications.

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