Aneet Deshpande

And there's this statistical thing out there that says that a significant majority of academic studies out in literature have been difficult to replicate in real time out of sample.

And I think that's very well seen or observed in literature.

in finance.

And you don't have to go too far to find that stuff, whether it's using PE multiples as your proxy for future expected return, whether it's inflation views vis-a-vis the 70s and the way we're printing money today, if you want to call it that.

There's all kinds of ideas where if you just simply treat the world as a scatterplot, draw a best fit line and let that drive your decisions,

you'd be in a pretty bad place.

So, I mean, I think there's like going back in time, I think it's easier in hindsight today, but just thinking about the world that way is I think very important or interesting that those things, meaning being able to look at mathematical relationships.

We know there's no immutable laws in finance, but look at those relationships with a higher grain of salt and saying things can change permanently.

Um, and, and, and they do actually change permanently.

Um, and even if permanent is only 20 years inside of a career and then maybe temporary on a hundred timescale, it's permanent for you inside of that timescale, your career timescale.

So, um, I think there's a fair amount of like just being more, uh, objective about, uh, what we see principally through the lens of academia versus what we expect in the future out of markets and, and out of our careers.

So that's probably the biggest thing.

Yeah, it's so true today and it permeates, I think, a lot of manager due diligence processes today where you may have a process that eliminates that sort of genius because you can't handle that kind of key man idiosyncratic risk inside of your underwrite.

And that's a tough thing.

I mean, we've taken the approach that we find smart people, we invest with them.

You know, you can make sure a lot of other things are right, but if you take a committee to everything, you will dilute yourself in the value of the investment down to

You know, it's lowest common denominator, which is medium-like outcomes, if not worse.

So I think that's a very, very, very important part.

Yeah.

And to your point, I think there's, you know, for being in my seat or our seats, we're allocators.