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Hedge Fund That Went Long the VIX in January Is Up 39% This Year

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Roe: Risk Recovery Story

All it took for Formidable Asset Management LLC to beat the market in the first half was to get the effect of the coronavirus right. As a result, Formidable’s fund climbed 38.8% this year, gross of fees, beating most peers and significantly outperforming the broader market.

The Formidable fund, which correctly bet on what Covid-19 would bring, went long on VIX options in mid-January, reduced some equity exposure and bought put options on Nasdaq derivatives in early February, according to a letter seen by Bloomberg.