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.
