David Weisburd

If it's too volatile, it could literally go down to zero.

That's another function of too much volatility is that it's, if like crypto, it could go up 10x and then the next morning be down 10x.

And oftentimes clients come to you with these constraints, some max drawdown.

Maybe you mentioned 20% in privates.

Let's say somebody came to you unconstrained, single family office with no liquidity needs.

I know it's an unusual case, but what would be your ideal portfolio allocation today based on private and public markets?

And is that behavioral, the 20% in the defense?

Is that to keep people from their own worst enemies themselves?

And again, selling in the worst time?

Let's say the person goes into their frozen, they're cryogenically frozen, and they're going to wake up in 15 years.

Would you still use that same portfolio?

Which is unrealistic.

And the key term there is liquid.

If it has a quarterly gate or a yearly gate where you can't redeem it until the next quarter, then these market fluctuations, you can't be opportunistic.

Now we go on to 80%.

You said 50% in publics, 30% in private equity.

My intuition would be the exact opposite, which is 50%.

You get the liquidity premium.

You get all the good stuff.

I've had Professor Steve Kaplan that showed that 300 to 500 extra basis points of being in private equity and venture capital over a long enough period.