Tim Barrett

We are, right?

So the leverage in its fact is your market index is levered, right?

It's a swap.

So you get your leverage there.

And then we're also putting more leverage on at the alpha level, which allows us to put more treasuries behind the market index.

The reason it works is because you're in the alpha pool, you're levering your least correlated asset.

So if you think across the whole portfolio, the one thing that doesn't move around with the market that much is that alpha pool.

And that's what you're building it for.

When you build an alpha pool, you build it based on drawdown risk and correlations.

You don't build it to maximize returns.

You want high returns, you want good returns, but your focus has to be on the downside and the correlation.

And that's the trick to portable alpha.

That's correct.

It's generally unaffected.

You can have like a 30% correlation, but we stress test the heck out of that and believe that we can handle a 50% drawdown.

And we look at it every week.

Last year, it ran at 800 basis points over the index.

The average global equity manager, if they consistently deliver between one and 200 over, like there's probably only a handful of those guys in the whole world.

Like hardly anybody, you look at S&P persistence report, active managers can't beat it.

That's why we do this.