Precautionary principle

Tail events are silent risks

They do it by buying far out of the money you put options it's it's pretty simple not easy to implement. It's very stressful because you can go years without making money in that strategy because it's waiting for an extreme event a very extreme event their strategy is betting on a 20% decline in the S&P 500 in one month which I think may have happened once or twice it happened on Black Monday in 1987.
To monetize the strategy they just need to have a very big decline very rapidly so that happened in 2008 happened a couple times in the 2010s in 2020

I wouldn't call that a bet, I would call that a risk management strategy