John Arnold

And I was getting the 20%.

So I had the best or as good economics as almost anybody in the business.

And then we had very good financial returns early on.

So that did two things.

Number one, there was a lot of retained earnings and new investors came in.

And so we had a lot of risk capital.

And second was we had a very good investor base that trusted,

The team I had built, whenever we had a down month or a down time period, which we had, they weren't calling to redeem, but they would call up and say, do you need more capital?

Because we had earned their trust and we had done forced distributions along the way.

So I'd set up this really powerful seat where I had good economics so I could hire the best people in the business that I knew of.

We had a lot of risk capital and had a very solid and stable investor base.

We started at two and 20.

We did very well and had more demand to invest than we had capacity.

We raised the fees over time and ended up at three and 35 by the end.

And that allows investment in the business.

So you can build up a fundamentals team that's best in the business because you need to pay them more.

You can go do side projects, like trying to get proprietary data sources that give an advantage.

And you can pay the trading team and the mid and back office more money.

And so everything in the business starts to work and you have the sense of excellence around the firm that makes everybody better.

We're able to develop a proprietary trade entry system and position management system.