Universa Investments is a so-called tail-risk fund, designed to protect investors during the toughest of market circumstances. These types of funds have an objective to protect investors from extreme risk, such as the crash that spurred the 2008 recession. Universa Investments is advised by 'The Black Swan' author Nassim Taleb, who called the financial crash that spurred the 2008 recession.
In a statement, Mark Spitznagel, chief investment officer of Miami-based Universa Investments, said levels of borrowing were so high following a decade of unprecedented monetary stimulus that the system was more vulnerable to a sudden shock. He noted that the current environment was not an opportunity to make a lot of money, but rather an opportunity to protect what one already has.
Hedge fund Universa Investments has told clients that ballooning debts across the global economy are poised to wreak havoc on markets, warning that a breakdown in corporate bonds could cause a "failure". Universa Investments is a fund that looks to protect investors against the biggest market risk, while also allowing them to benefit from the upside of a recovery.