‘Explosive Downside Protection’ Sparks a 57.2% Return for These Investors

‘Markets were priced for perfection, but all of a sudden the world lost its veil of perfection’

by Shawn Langlois
Market Watch

Back in March, Mark Spitznagel, founder of Universa Investments, explained his approach to cashing in on crisis situations like the one currently facing the global economy.

“When the market crashes, I want to make a whole lot and when the market doesn’t crash, I want to lose a teeny, teeny amount,” he said. “I want that asymmetry… that convexity.”

And make a whole lot he did. Spitznagel made far out-of-the-money “explosive downside protection” that delivered a 4,144% return when the first wave of the coronavirus selling took hold.

But his fund isn’t the only one of its kind making a killing in this market.

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