David Weisburd

They don't want to continue investing in asset class that's on the low.

And then

the valuations go lower, people invest, and then they renormalize.

And then the opposite happens as well.

You have, I think venture had like a 13 year bull run or something crazy like that from 2008 to 2020, uh, 22.

And then of course, so much of what's, what's known derogatorily as VC tourists came in, started putting in so much money into companies like we were at the exact wrong time.

And then obviously they lost that money as well.

So there's this momentum trade and venture, uh,

That's a little bit less prominent because it's vintage by vintage, but still kind of follows those same principles.

50% of funds from 2020 vintage venture capital funds have under a 0.1 X DPI.

So I have given back less than 10%.

This is six years in.

So there is a DPI crisis taking a step back.

I think oftentimes

great ideas start out great david swenson came i came up with this private private asset allocation model but it was in the 80s and then people instead of realizing that it was a model for the 80s 90s 2000 they just take it at a basis without thinking about it from first principles and if you stick to the same model while the market is changing you might have unintended consequences i'll give you a couple examples

One is you mentioned small cap value.

I had the CIO of Hurdle Callahan, Brad Conger.

And one of the things that he believes is that actually small cap value, the companies that are small in the public markets are fundamentally different types of companies than they were several decades ago.

They might be SPAC targets that have gone down.

They might be fallen angels, large companies that are small companies.