Stuart Miller

But then he ended up running, call it a $10 billion plus fund. I was thinking, oh, that's a very interesting spread. Outside this container, the market as a whole would price him at $500 million to a billion. He's running a $12 billion plus fund. The founder of that firm who made that decision, that's that guy's arb. That's the bet. And it ended up being the correct bet.

But then he ended up running, call it a $10 billion plus fund. I was thinking, oh, that's a very interesting spread. Outside this container, the market as a whole would price him at $500 million to a billion. He's running a $12 billion plus fund. The founder of that firm who made that decision, that's that guy's arb. That's the bet. And it ended up being the correct bet.

I didn't necessarily see it at the time. I was thinking, whoa, that's a huge spread. And if he went outside, it would be so much smaller.

I didn't necessarily see it at the time. I was thinking, whoa, that's a huge spread. And if he went outside, it would be so much smaller.

Adverse selection. And the moment you have to... I remember we were so careful about this, and my partners who now run Eastrock continue to be careful about this. If you have all the mentality of, I need to put assets out, it completely screws up the dynamic. I wouldn't trust myself if I had- You had a seed fund. Yes.

Adverse selection. And the moment you have to... I remember we were so careful about this, and my partners who now run Eastrock continue to be careful about this. If you have all the mentality of, I need to put assets out, it completely screws up the dynamic. I wouldn't trust myself if I had- You had a seed fund. Yes.

If I had $2 billion that's burning a hole in my pocket and I need to seed- Important point. The other thing that people do, I've noticed this, if you seed somebody, I was talking with a guy, I won't use the name of the fund, but he was at a very prestigious fund and somebody called him and offered him, it was a big seed, call it $200 million. And

If I had $2 billion that's burning a hole in my pocket and I need to seed- Important point. The other thing that people do, I've noticed this, if you seed somebody, I was talking with a guy, I won't use the name of the fund, but he was at a very prestigious fund and somebody called him and offered him, it was a big seed, call it $200 million. And

My hypothesis, I remember talking to him, my hypothesis was if the guy hadn't called and given him the $200 million, he wouldn't have come up with it on his own. It's a very subtle, I forget, we've talked before about source dynamics, like workwithsource.com. It's a collection of information on this concept that I'm obsessed with.

My hypothesis, I remember talking to him, my hypothesis was if the guy hadn't called and given him the $200 million, he wouldn't have come up with it on his own. It's a very subtle, I forget, we've talked before about source dynamics, like workwithsource.com. It's a collection of information on this concept that I'm obsessed with.

But it's like the argument is this guy, Peter Koenig, and he had looked at all these startups in Europe, several hundred, and found that even when there were co-founders, there was really one person involved. who took the first risk, even if that was calling the other co-founder. And that you'd be really careful about that first risk and who's taking it and why they're taking it.

But it's like the argument is this guy, Peter Koenig, and he had looked at all these startups in Europe, several hundred, and found that even when there were co-founders, there was really one person involved. who took the first risk, even if that was calling the other co-founder. And that you'd be really careful about that first risk and who's taking it and why they're taking it.

I remember meeting with a quant fund. And when I pulled the thread on the origin story, there was something about the energetic of the guy running the quant fund, which was that he was relating to it as a job, not his thing. It's like, that's so weird. And then I pulled the thread and it emerged that it happened to him. He'd been sitting at a fancy firm,

I remember meeting with a quant fund. And when I pulled the thread on the origin story, there was something about the energetic of the guy running the quant fund, which was that he was relating to it as a job, not his thing. It's like, that's so weird. And then I pulled the thread and it emerged that it happened to him. He'd been sitting at a fancy firm,

And a friend of his had said, let's do this thing. And the source dynamics were screwed up from the start. And this guy, Peter Koenig, has this argument that all organizational dysfunction can be traced back to disagreements about who is source or the actual source playing small or not fully owning being the source of the thing. And it totally fit my sample of hedge funds where

And a friend of his had said, let's do this thing. And the source dynamics were screwed up from the start. And this guy, Peter Koenig, has this argument that all organizational dysfunction can be traced back to disagreements about who is source or the actual source playing small or not fully owning being the source of the thing. And it totally fit my sample of hedge funds where

Our friend Diana Chapman has this analogy of the chick needs to peck through the eggshell and develop the strength through the pecking in order to make it once you're outside. If you break the shell for them, they will die. If you mess with the origin in any subtle way, it can affect the entire trajectory of the thing in ways you wouldn't think.

Our friend Diana Chapman has this analogy of the chick needs to peck through the eggshell and develop the strength through the pecking in order to make it once you're outside. If you break the shell for them, they will die. If you mess with the origin in any subtle way, it can affect the entire trajectory of the thing in ways you wouldn't think.

Yeah. Kind of up one level looking to back people and fit their circumstance and they were going to do the thing anyway.

Yeah. Kind of up one level looking to back people and fit their circumstance and they were going to do the thing anyway.