Tail hedging spitznagel These are puts that are struck at strike prices… Continue reading Analysis of Mark Sep 3, 2013 · Mark Spitznagel is the founder and President of Universa Investments, an investment advisor that specializes in equity tail-hedging—or profiting from extreme stock market losses as a means of enhancing investment returns. His investment career has spanned over 20 years as a derivatives trader, during which he has cultivated his approach to safe haven strategies, specifically bespoke tail hedging. Sep 27, 2020 · Download PDF Introduction Tail-risk hedging strategies were once again on investors mouths, following the March 2020 drawdowns. 2% annual return on capital with its "tail-risk hedging" strategy from 2008-2019, according to Jul 27, 2025 · Spitznagel is a pioneer in "tail-hedging" or "black swan" investing, an investment strategy intended to provide "insurance-like protection" against stock market crashes. Taleb went on to popularize the “black swan” concept in his books and Spitznagel went on to modify and implement the strategy (which became a major hedge fund investment asset class) at his very successful hedge fund Universa. The Dao of Capital (Highly recommend this one) Safe Haven Read Taleb’s books especially Dynamic Hedging Read in between the lines and you will get a glimpse of what they do. In addition to hedge fund investing, Spitznagel's twenty-year investment career has ranged from independent pit trader at the Chicago Board of Trade to proprietary trading Yahoo Finance: You're the Distinguished Scientific Advisor at the hedge fund of your longtime friend Mark Spitznagel, Universa Investments, a pioneer in tail risk hedging for institutional clients. from the California Institute of Technology. As the founder and president of Universa, he knows his products Spitznagel and Universa’s Distinguished Scientific Advisor, Nassim Nicholas Taleb, together began tail hedging formally for client portfolios over twenty years ago. 50). Jul 20, 2024 · His hedge fund specializes in tail-risk hedging, a strategy that seeks to prevent losses from unforeseeable and unlikely economic catastrophes, also known as "black swans. ” May 12, 2025 · A so-called tail-risk hedge fund with $20 billion in assets under management, Universa specializes in risk mitigation against "black swan" events - unpredictable and high-impact drivers of market Jun 14, 2024 · Beat the Market with Tail Hedging? This article takes a look at using options as a form of portfolio insurance to reduce the impact of market downturns. The real problem in the stock market is the failure to expect events that should be anticipated, which is the basis of Spitznagel's business strategy. Because markets generally charge a risk premium for insurance, the expected returns of a tail hedging strategy over long periods of time are negative. Mark About the Author: Mark Spitznagel is the founder and President of Universa Investments, an investment advisor that specializes in equity tail-hedging--or profiting from extreme stock market losses as a means of enhancing investment returns. About the author Mark Spitznagel is a renowned American investor, author, and the founder and Chief Investment Officer of Universa Investments, an advisory firm specializing in risk mitigation strategies. It's worth noting that even after reading all the works of Nassim Taleb and Mark Spitznagel, one might still be unsure about how to practically implement tail hedging strategies. S. Aug 7, 2023 · One Man Achieved a 4,144% Return in the Stock Market During the Pandemic Mark Spitznagel’s Tail Risk Hedging Strategy and How it Works Young Professional Series: Hedge Funds: Portfolio … Sep 22, 2020 · Spitznagel wasn’t surprised when Meng ended CalPERS’ tail-risk hedging program. He has used an example where one would purchase a protective put position as insurance against a desired long position. Spitznagel and Universa’s Distinguished Scientific Advisor, Nassim Nicholas Taleb, together began tail hedging formally for Oct 2, 2016 · Analysis of Mark Spitznagel Tail Hedging, Part 2 Part 1 From what I can glean from the links provided in part 1, Universa allocates approximately 1% of its capital on OTM (out-of-money) S&P 500 puts that expire in 70-90 days and have a ‘delta’ of . He explained to CNBC on Monday why tail-risk hedging is generally a "costly and bad strategy Read both of Spitznagel’s books. Apr 1, 2025 · His hedge fund specializes in tail-risk hedging, a strategy that seeks to prevent losses from unforeseeable and unlikely economic catastrophes, also known as “black swans. And if you look at sales stuff from Universa (Spitznagel's outfit) that's the comparison, which is conceptually the right one. Sep 3, 2013 · In The Dao of Capital, hedge fund manager and tail-hedging pioneer Spitznagel takes the reader on a gripping, circuitous journey from the Chicago trading pits, over the coniferous boreal forests and canonical strategists from Warring States China to Napoleonic Europe to burgeoning industrial America, to the great economic thinkers of late 19th About the Author: Mark Spitznagel is the founder and President of Universa Investments, an investment advisor that specializes in equity tail-hedging--or profiting from extreme stock market losses as a means of enhancing investment returns. nklac lws cqysn jriflf hjvs ecigt alfntb rbdlo rlkhj lojjk wlcuk rzikx tfxk ifzg venwgx