Winning ‘Black Swan’ Investor in 2008 Says Market’s More Fragile
- Haworth at 36 South Capital Advisors snaps up cheap options
- Late-cycle and high leverage add to risks of market contagion
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For funds that thrive on crisis, the volatility jolt that wiped out over $4 trillion of global stock value in February was merely a tremor. A full-blown financial earthquake looms.
They’re known as tail funds, for whom the traditional objective of producing annual returns is replaced by the contrarian task of preparing for events that are more than three standard deviations from the norm, or those that have a 0.3 percent chance of coming to pass.