Black Swans, Hedge Funds

One other thing I learned at MLG this year (see post below) is that the way Hedge Funds make their money is through betting against events that are extremely unlikely. Dubbed "black swans" these type of events include things like when oil prices rise so will all other prices (at least this was the example I was given).



The problem with this form of institutionalized gambling is that disastrous events do happen.