David Weisburd

I had the CIO of North Dakota Land Trust, Frank McHale.

And the way that he builds out every asset class is he finds an index of that asset class.

And then he sells that index into a manager.

So if he was to go and buy a large buyout, he would find...

an index approach to that.

And as he finds a manager that he believes could actually deliver alpha, he sells from that and puts in that manager.

And the reason it's so underrated is behaviorally, it's so important not to have a pressure to act when investing.

And when you're starting out as CIO, I'm sure there are certain asset classes that you weren't an expert in.

How many managers did you have to meet with before you were ready to make the first investment?

Fantastic question.

And 30 managers de-risks a lot of it, 300, another sense of it.

And then at the margins, the downside becomes less and less the more managers.

The odds of making a huge mistake are largely mitigated by number of meetings.

How do you marry the strategy of going slow or going where the opportunities really are with managing the board and the stakeholders and the messaging?

I think that's actually a useful addition.

At Professor Steve Kaplan, he quantified the two and 20 is 600 basis points per year.

So if you could average down that co-investment, if you have fee structure low, you start with a margin of error is another way to put it.

And then on top of that, you're partnering with your GPs.

That also is a great way to diligence the GP.

Like, how are they thinking on specific investments?