Diego Parrilla

Having someone like Dennis Rodman reduces your risk because the other team is scoring less points.

Okay?

So thank you, Dennis.

Yeah.

The second thing that Dennis Rodman did is if you managed to shoot, then he might catch the defensive rebound, which means you don't have a second shot.

The other thing he did is he caught offensive rebounds, which is, hey, here we go, gave it to Michael Jordan, who had a second shot and likely didn't miss.

So the difference between chess and basketball is that if we play chess, we'll have 50 moves each.

In basketball, we will have 50 moves each minus 50 shots each plus minus the effect of blocks

defensive and offensive rebounds.

So it might well be that you had 50 shots, I had 70.

And so it turns out that out of the 50 points scored by Michael Jordan, maybe 10% of those, maybe five points came from the attribution of Michael Jordan's 50 points came from situations that would have never taken place had you not had

but then it's Rodman on the team.

And in a game like sports where the difference is so small, maybe one point determines whether you won or lost the game, this is absolutely critical.

But the question is who gets the credit?

It's always Michael Jordan, right?

So in that sense, think about portfolio construction the same way.

Who gets the credit?

Equities gets the credit.

But you want to be in a situation where your defenders, the downside alpha, is not there just to, you know, you need to think about it not in the linear way.

You need to understand the non-linearity of defense and how it contributes to incremental returns that you would have not otherwise had, be it because you've been attacking more defensively.