Right, Empirica was the first "black swan" fund, which caught the crash of 2000. Universa was the next round, starting in 2007. That caught the 2008 crash.
As a strategy, this depends on a rough prediction of when the next crash will occur.
> this depends on a rough prediction of when the next crash will occur
If you think the tails are mispriced (and you have some kind of alternative distribution), and markets are liquid, can't you just keep on making Kelly bets? Maybe you need to model third-party investors bailing too, though...
As a strategy, this depends on a rough prediction of when the next crash will occur.