|Jerry Haworth’s 36 South Capital Advisors LLP plans to launch the Black Eyrar Fund within the next three months. According to an article from Bloomberg, the Black Eyrar Fund will seek to profit from unforeseen high-impact events. The hedge fund will bet on risk-aversion events, buying long-dated options. The strategy closely resembles that of his Black Swan Fund, which closed after its 234 percent gain in 2008.|
Mr. Haworth believes the time is opportune to start a new fund. Although the option prices shot up after Japan’s nuclear crisis, they have come back down. Moreover, the decrease in volatility has reduced the cost of using options to protect against losses.
36 South Capital, which was founded in Auckland, New Zealand, jumped continents in 2009 and is now based in London. The firm has assets under management of approximately $250 million.
36 South Capital is not related to Mark Spitznagel’s and Nassim Taleb’s Universa Investments, which manages over ten Black Swan related hedge funds. Mr. Taleb is the author of the best-selling book "The Black Swan," which details his acclaimed theory on the extreme unpredictability of very rare events.