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New Universa 'Black Swan' Fund to Make Bets on Hyperinflation

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steven johnson Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-31-09 07:44 PM
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New Universa 'Black Swan' Fund to Make Bets on Hyperinflation
Welcome to the high-stakes world of big time investing where the minimum bets are in the $25 to $100 million range.


MAY 31, 2009, 5:55 P.M. ET

By SCOTT PATTERSON
A hedge fund firm that reaped huge rewards betting against the market last year is about to open a fund premised on another wager: that the massive stimulus efforts of global governments will lead to hyperinflation.

The firm, Universa Investments L.P., is known for its ties to gloomy investor Nassim Nicholas Taleb, author of the 2007 bestseller "The Black Swan," which describes the impact of extreme events on the world and financial markets.

Unlike last year's sudden market implosion, inflation isn't an unimaginable event that few currently anticipate. In fact, many fear inflation right now amid government efforts to goose the economy. Universa's bet, however, is that inflation will reach levels few expect.

Mr. Taleb said any deflation would be matched by an aggressive move by governments to stimulate their economies, leading inevitably to an uncontrollable surge in prices.


New Universa 'Black Swan' Fund to Make Bets on Hyperinflation
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