Black-Swan Investor Universa Said to Start $1 Billion Macro Fund

Universa Investments LP, a hedge fund that aims to protect clients against market cataclysms known as black swans, is seeking $1 billion for a new macro fund that will try to capitalize on mispriced options, according to a person familiar with the matter.

Universa, which has about $6 billion under management, will market the fund as one that specializes in convexity, the term for investments that risk little capital yet have the potential for big payoffs, said the person, who asked not to be identified because the firm is private. The Universa Convex Macro Fund will make bets primarily by purchasing options on benchmarks such as the Standard & Poor’s 500 Index, as well as individual commodities, currencies, stocks and other financial instruments, the person said.