Philippe Laffont

And the other part that's weird with the public markets is since everybody needs to be indexed, everybody needs to be fully invested at all times. I'm like, why? Why is it that you need to be fully invested in 1999 if the P multiple of the market is 60? Why is it that you want to be fully invested when you're already down 10%? Things are not working. Why not raise cash a lot?

And the other part that's weird with the public markets is since everybody needs to be indexed, everybody needs to be fully invested at all times. I'm like, why? Why is it that you need to be fully invested in 1999 if the P multiple of the market is 60? Why is it that you want to be fully invested when you're already down 10%? Things are not working. Why not raise cash a lot?

Sort of, you know, freshen up your ideas a little bit. Go take a long walk on the beach and try to understand maybe you've made some mistakes and stuff like that. So I've always wanted to do two things, which is one on the public side, have the ability to be different in the stocks that I own, but also that if I'm nervous, then what's wrong with holding cash?

Sort of, you know, freshen up your ideas a little bit. Go take a long walk on the beach and try to understand maybe you've made some mistakes and stuff like that. So I've always wanted to do two things, which is one on the public side, have the ability to be different in the stocks that I own, but also that if I'm nervous, then what's wrong with holding cash?

And I hate to put this in the same word, but you look at Berkshire Hathaway today and everybody wants to compare themselves to Berkshire a little bit. But Berkshire today is a trillion dollar company, a third in cash, a third in public equities, a third in private equities, right?

And I hate to put this in the same word, but you look at Berkshire Hathaway today and everybody wants to compare themselves to Berkshire a little bit. But Berkshire today is a trillion dollar company, a third in cash, a third in public equities, a third in private equities, right?

And so I was like, okay, well, what if we have a system where we can be in public stocks, we can be in private companies, but we also can be in lots of cash and where investors know on day one, please do not compare me to an index. If you come in, you got to give me sort of five or seven years to do my work. And I'm also going to let you take a little bit of money every year.

And so I was like, okay, well, what if we have a system where we can be in public stocks, we can be in private companies, but we also can be in lots of cash and where investors know on day one, please do not compare me to an index. If you come in, you got to give me sort of five or seven years to do my work. And I'm also going to let you take a little bit of money every year.

So in essence, I'm willing to work at much lower fees because you give me capital for longer. But you don't give me the capital forever and you're not stuck forever. And so these interval funds are really interesting because I think the minimum investment is like $50,000 or something like that. And the conditions to qualify for such a fund are much smaller.

So in essence, I'm willing to work at much lower fees because you give me capital for longer. But you don't give me the capital forever and you're not stuck forever. And so these interval funds are really interesting because I think the minimum investment is like $50,000 or something like that. And the conditions to qualify for such a fund are much smaller.

So there's many more investors that can come. And I look at it a little bit of like, this is the democratizations of tech investing. And I really believe in it. I've been doing my thing for 30 years for institutional investors. Why can't I do it for like people who don't have access to- Let me ask you a question.

So there's many more investors that can come. And I look at it a little bit of like, this is the democratizations of tech investing. And I really believe in it. I've been doing my thing for 30 years for institutional investors. Why can't I do it for like people who don't have access to- Let me ask you a question.

Something like that.

Something like that.

Yeah. So... We got a little bit lucky in that we studied the fees of other funds. These are things called interval funds. And it seems like the fees were more like 1.25 and 12. And so we're like, well, can we live at 1.25 and 12? And I was like, yeah, you know, it's a really good deal for other people, but I get something for it, which is I get near permanent capital.

Yeah. So... We got a little bit lucky in that we studied the fees of other funds. These are things called interval funds. And it seems like the fees were more like 1.25 and 12. And so we're like, well, can we live at 1.25 and 12? And I was like, yeah, you know, it's a really good deal for other people, but I get something for it, which is I get near permanent capital.

And in exchange for that near permanent capital, I'm willing to live. at lower fees because I think I'm going to be able to compound it for longer. So in essence, it's not like I'm being altruistic. I'm not claiming, oh, I just want to do a good deal for people. It's I'm being selfish.

And in exchange for that near permanent capital, I'm willing to live. at lower fees because I think I'm going to be able to compound it for longer. So in essence, it's not like I'm being altruistic. I'm not claiming, oh, I just want to do a good deal for people. It's I'm being selfish.

If I can compound capital at 12.5% incentive fee for a very long time, it's better than 20% for a short period of time. And for the investor, I love the fact that I'm sort of investing. Like if you told me, Philippe, start from scratch, write on a little blank piece of paper, what would you do?

If I can compound capital at 12.5% incentive fee for a very long time, it's better than 20% for a short period of time. And for the investor, I love the fact that I'm sort of investing. Like if you told me, Philippe, start from scratch, write on a little blank piece of paper, what would you do?