David Weisburd

So now when the market goes down, you still have the treasury buffer from leveraging the multi-strat position, the uncorrelated part, because it's not correlated to the market going down.

So it's unaffected.

Texas Tech is at $3.3 billion, which is no small amount of money, but it's certainly not Calipers.

It's not Utimco.

How does your size give you an advantage over other allocators?

When you last chatted, you said that you like to hire generalists on your team who are senior.

Double-click on that strategy.

you're not creating the wrong incentives in terms of investing.

And you're also, although you have a generalist layer on your team, you're partnering with specialists.

So you're going lower middle market, secondary person, somebody that spends all their time in a very specific niche, and you're having the generalist part of your team member manage that relationship and basically get abreast on the opportunities in that niche.

Had over three decades of dealing with people, managing, developing them.

What's something that you've recently changed your mind at around talent management?

How would you describe the Texas Tech culture?

Did you come up with that incentive scheme and what are the trade-offs of individual versus team-based incentives?

Last time we chatted, we had this interesting conversation about hedge fund fees.

Not that you love paying hedge fund fees, but you're fine with them.

Why are you fine with paying these exorbitant hedge fund fees?

And how do you justify that?

Said another way, if somebody's just tracking the S&P 500, even if they bid by 100 points, but you're paying two and 20, which is the equivalent of 600 basis points, you're losing 500 basis points versus if you're just using them for the alpha and they're getting you a return of, like we mentioned earlier, 800 basis points, then paying some small percentage of that makes sense.

When it comes to investing, what's something that you've changed your mind on in the past two years?