LoveMonkey (talk | contribs) Undid revision 406144943 by Nagle (talk) |
Cite to reliable source for reason for fund shutdown. |
||
Line 1: | Line 1: | ||
'''Empirica Capital''' a tail hedging firm started by [[Nassim Nicholas Taleb]] in 1999 carrying an insurance-style strategy (now called "Black Swan Protection") aiming to protect investors from large adverse events <ref>{{cite web|last=Harrington |first=Shannon D. |url=http://www.bloomberg.com/news/2010-07-20/pimco-sells-black-swan-protection-as-wall-street-profits-from-selling-fear.html |title=Pimco Sells Black Swan Protection as Wall Street Markets Fear |publisher=Bloomberg |date= |accessdate=2010-10-01}}</ref><ref name="Pat"><cite>Mr. Volatility and the Swan</cite>, ''[[The Wall Street Journal]]'', July 13, 2007</ref> |
'''Empirica Capital''' a tail hedging firm started by [[Nassim Nicholas Taleb]] in 1999 carrying an insurance-style strategy (now called "Black Swan Protection") aiming to protect investors from large adverse events <ref>{{cite web|last=Harrington |first=Shannon D. |url=http://www.bloomberg.com/news/2010-07-20/pimco-sells-black-swan-protection-as-wall-street-profits-from-selling-fear.html |title=Pimco Sells Black Swan Protection as Wall Street Markets Fear |publisher=Bloomberg |date= |accessdate=2010-10-01}}</ref><ref name="Pat"><cite>Mr. Volatility and the Swan</cite>, ''[[The Wall Street Journal]]'', July 13, 2007</ref> |
||
The investment strategy of the fund has been explained in a New Yorker article.<ref>[http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm Gladwell.com]</ref> One of Empirica's funds, Empirica Kurtosis LLC, was reported to have made a 60% return in 2000 followed by losses in 2001, 2002, and single digit gains in 2003 and 2004. |
The investment strategy of the fund has been explained in a New Yorker article.<ref>[http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm Gladwell.com]</ref> One of Empirica's funds, Empirica Kurtosis LLC, was reported to have made a 60% return in 2000 followed by losses in 2001, 2002, and single digit gains in 2003 and 2004. |
||
The fund was closed in 2004 "after several years of mediocre returns".<ref>{{cite book | |
|||
title=The Failure of Risk Management: why it's broken and how to fix it | |
|||
⚫ | <ref>[http://www.fooledbyrandomness.com/bloombergProfile.pdf The Risk Maverick], Stephanie Baker-Said, [[Bloomberg L.P.]]</ref><ref name="WSJ08"><cite>[http://online.wsj.com/article/SB122567265138591705.html October Pain Was ‘Black Swan’ Gain]</cite>, ''The Wall Street Journal'', November 4, 2008</ref> |
||
author=Hubbard, Douglas | |
|||
publisher=Wiley | |
|||
url=http://books.google.com/books?id=u2AceU1L95EC&pg=PA156&dq=%22empirica+capital%22&hl=en&ei=LE0nTaidGY36swO3wuGQBw&sa=X&oi=book_result&ct=result&resnum=9&ved=0CEoQ6AEwCA#v=onepage&q=%22empirica%20capital%22&f=false | |
|||
id=ISBN 9780470387955 | |
|||
⚫ | date=2009 }}</ref><ref>[http://www.fooledbyrandomness.com/bloombergProfile.pdf The Risk Maverick], Stephanie Baker-Said, [[Bloomberg L.P.]]</ref> (Taleb claims that the fund was closed so that he could "become a writer and scholar".)<ref name="Pat"/><ref name="WSJ08"><cite>[http://online.wsj.com/article/SB122567265138591705.html October Pain Was ‘Black Swan’ Gain]</cite>, ''The Wall Street Journal'', November 4, 2008</ref> |
||
In 2007, [[Mark Spitznagel]], Taleb's former partner at Empirica, founded the firm Universa Investments L.P., to which Taleb is an adviser, and which runs portfolio hedging strategies similar to Empirica's.<ref name="WSJ08"/><ref name="WSJ09"><cite>[http://online.wsj.com/article/SB124519615631521063.html Black Swan Trader Bets Reputation on Inflation]</cite>, ''The Wall Street Journal'', June 17, 2009</ref> |
In 2007, [[Mark Spitznagel]], Taleb's former partner at Empirica, founded the firm Universa Investments L.P., to which Taleb is an adviser, and which runs portfolio hedging strategies similar to Empirica's.<ref name="WSJ08"/><ref name="WSJ09"><cite>[http://online.wsj.com/article/SB124519615631521063.html Black Swan Trader Bets Reputation on Inflation]</cite>, ''The Wall Street Journal'', June 17, 2009</ref> |
||
Revision as of 17:39, 7 January 2011
Empirica Capital a tail hedging firm started by Nassim Nicholas Taleb in 1999 carrying an insurance-style strategy (now called "Black Swan Protection") aiming to protect investors from large adverse events [1][2]
The investment strategy of the fund has been explained in a New Yorker article.[3] One of Empirica's funds, Empirica Kurtosis LLC, was reported to have made a 60% return in 2000 followed by losses in 2001, 2002, and single digit gains in 2003 and 2004. The fund was closed in 2004 "after several years of mediocre returns".[4][5] (Taleb claims that the fund was closed so that he could "become a writer and scholar".)[2][6] In 2007, Mark Spitznagel, Taleb's former partner at Empirica, founded the firm Universa Investments L.P., to which Taleb is an adviser, and which runs portfolio hedging strategies similar to Empirica's.[6][7]
References
- ^ Harrington, Shannon D. "Pimco Sells Black Swan Protection as Wall Street Markets Fear". Bloomberg. Retrieved 2010-10-01.
- ^ a b Mr. Volatility and the Swan, The Wall Street Journal, July 13, 2007
- ^ Gladwell.com
- ^ Hubbard, Douglas (2009). The Failure of Risk Management: why it's broken and how to fix it. Wiley. ISBN 9780470387955.
- ^ The Risk Maverick, Stephanie Baker-Said, Bloomberg L.P.
- ^ a b October Pain Was ‘Black Swan’ Gain, The Wall Street Journal, November 4, 2008
- ^ Black Swan Trader Bets Reputation on Inflation, The Wall Street Journal, June 17, 2009