Black swans bet big on big inflation


The Wall Street Journal

reports (subscription required) that Universa Investments L.P., a hedge fund firm tied to bestselling author Nassim Nicholas Taleb, is betting big on serious inflation over the next few years.

According to the Journal, "The new strategy . . . aims to post big gains if inflation and interest rates take off as they did in the 1970s. Universa will invest in options tied to commodities such as corn, crude oil and copper, as well as options on stocks such as oil drillers and gold miners."