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Investors now call it “Black Monday”…
On August 24, 2015, the Dow Jones industrial average opened to a 1,000-point decline. It was the index’s largest intraday drop in history.
As the market plunged, most investors panicked…
But not Mark Spitznagel.
He’s the president and CIO of hedge fund Universa Investments. The Wall Street Journal reports his fund racked up a $1 billion gain that day. His clients are up 20% on the year (versus the S&P 500’s -4.9% return).
In a recent interview, Spitznagel explains the reasons behind his $1 billion win. He almost sounds like he’s reading the entire PBRG investment manifesto…
Here are some highlights:
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What’s important isn’t what Universa made… What’s important is what our clients didn’t lose… |
He’s parroting PBRG’s fundamental investment thesis: Protect your downside first.
Do this, and the upside will take care of itself. It’s why our risk-management protocol—the Palm Beach Three-Legged Stool of Safety—is central to every move we make.
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[Cash] is the toughest trade there is right now… to be sitting there earning nothing… and that’s probably why it’s the right trade. |
It could’ve been Tom Dyson talking.
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Regular Daily readers know PBRG’s publisher is a huge dollar bull. Tom spent the bulk of his live updates last week explaining why the U.S. dollar is making an enormous bull run.
Our favorite way to profit from the dollar’s rise is something 100% off Wall Street: dividend-paying whole life insurance. We call this little-known, tax-advantaged strategy Income for Life.
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If August was scary to people, they ain’t seen nothing yet… |
Spitznagel knows the volatility isn’t over.
But, unlike most investors, he isn’t scared of it. That’s because his hedge fund follows another vital PBRG safety mechanism: intelligent asset allocation.
Unlike most hedge funds—which invest their clients’ entire investable funds—Spitznagel’s fund applies 10% or less of its clients’ wealth to investments that profit from downward moves in the market. The clients’ remaining funds are allocated across other assets.
This mimics PBRG’s own asset allocation strategy. Stock recommendations are just one component of our diversified investment approach.
We utilize eight different asset classes. These include “chaos hedges,” like precious metals and options trades that benefit from rising volatility (like our latest 84.4% “short” options winner in just over two months inside Tom’s Confidential).
Bottom line: Take the time to watch Spitznagel’s entire eight-minute video below. It’ll reinforce the kind of safe, profitable strategies we recommend you apply to your own investments.