Kelly Granat

It's interesting. I mean, when I zoom out and think about starting as a summer intern in the summer of 2001 during business school and then returning full time to the public markets in 22, the industry was really different. One, you know, there were a lot more fundamentally oriented, directional, duration-oriented investors who were doing deep research with a three-, four-, five-year time horizon.

It's interesting. I mean, when I zoom out and think about starting as a summer intern in the summer of 2001 during business school and then returning full time to the public markets in 22, the industry was really different. One, you know, there were a lot more fundamentally oriented, directional, duration-oriented investors who were doing deep research with a three-, four-, five-year time horizon.

There were many fewer levered pods, and certainly passive wasn't a thing yet. And it felt like the marginal dollar of volume on the exchanges was dictated more by what fidelity or capital overthinking or maybe even sometimes a large hedge fund versus what was happening at Citadel or what was happening with Pods or what was happening with Passive.

There were many fewer levered pods, and certainly passive wasn't a thing yet. And it felt like the marginal dollar of volume on the exchanges was dictated more by what fidelity or capital overthinking or maybe even sometimes a large hedge fund versus what was happening at Citadel or what was happening with Pods or what was happening with Passive.

And so in addition to that, when I think about organizational structure and how we did our jobs, The org structure was, I think most fundamental firms, pretty siloed, right?

And so in addition to that, when I think about organizational structure and how we did our jobs, The org structure was, I think most fundamental firms, pretty siloed, right?

You could cover industrials, you covered consumer, you covered financials, and you were doing that with a peer set really of people outside of your firm who you developed a network with over time, who you were sharing meetings with, going to conferences with.

You could cover industrials, you covered consumer, you covered financials, and you were doing that with a peer set really of people outside of your firm who you developed a network with over time, who you were sharing meetings with, going to conferences with.

And the level of conversation amongst peers was just not as informed because people were operating in sort of sector silos, right, in terms of knowledge and coverage and expertise and network. In addition to that, the tools with which we used to do our jobs were pretty different. You would meet with companies. You would read filings. You would go to conferences.

And the level of conversation amongst peers was just not as informed because people were operating in sort of sector silos, right, in terms of knowledge and coverage and expertise and network. In addition to that, the tools with which we used to do our jobs were pretty different. You would meet with companies. You would read filings. You would go to conferences.

You would try to do some proprietary research. But things like credit card data and expert networks and all of these tools that we all now use to supplement our fundamental research or as a part of our fundamental research didn't exist. And so the ways to do the job and the ways to differentiate yourself, I think, were different. The tools were different, certainly, that were available to you.

You would try to do some proprietary research. But things like credit card data and expert networks and all of these tools that we all now use to supplement our fundamental research or as a part of our fundamental research didn't exist. And so the ways to do the job and the ways to differentiate yourself, I think, were different. The tools were different, certainly, that were available to you.

In addition to that, I would say at the portfolio level, when I look back, and obviously I wasn't managing a portfolio at that point in time, but looking up to my portfolio managers, the tools to think about portfolio construction, risk, portfolio analytics, none of these things really existed.

In addition to that, I would say at the portfolio level, when I look back, and obviously I wasn't managing a portfolio at that point in time, but looking up to my portfolio managers, the tools to think about portfolio construction, risk, portfolio analytics, none of these things really existed.

And so as a fundamental investor, you were really going bottoms up, single stock, building a portfolio that way, and obviously looking at things like what acted best, in concert with one another, correlations, things like that. But it was a different job. So that's sort of like a snapshot of 25 years ago, let's say.

And so as a fundamental investor, you were really going bottoms up, single stock, building a portfolio that way, and obviously looking at things like what acted best, in concert with one another, correlations, things like that. But it was a different job. So that's sort of like a snapshot of 25 years ago, let's say.

Fast forward to today, and obviously market structure has evolved meaningfully as a function of where the dollars are being traded. And obviously the emergence of passive and pods has been sort of the giant sucking sound in the public markets for a long time. And I feel like the marginal dollar being dictated by

Fast forward to today, and obviously market structure has evolved meaningfully as a function of where the dollars are being traded. And obviously the emergence of passive and pods has been sort of the giant sucking sound in the public markets for a long time. And I feel like the marginal dollar being dictated by

fundamental decisions that are long-term oriented by the capitals, the Fidelity's, the Tito prices of the world is just less meaningful on how stocks actually trade. And the new behavior it feels is more around what we call kind of setup dynamics and that is

fundamental decisions that are long-term oriented by the capitals, the Fidelity's, the Tito prices of the world is just less meaningful on how stocks actually trade. And the new behavior it feels is more around what we call kind of setup dynamics and that is