Tim Barrett

I want to see arguments back and forth about ideas.

If I don't see that, you don't get that bonus.

You just go to your office and do private credit, you're not getting the bonus, right?

Have to be integrated.

The incentive structure is paramount in how well an organization runs.

In the end, it's about net return.

So I'll just take us back to Portable Alpha for a second, because that's the place where we probably have the most hedge funds.

And that's where all those kind of pass-through fees come through for the hedge funds when you start talking about baleosting 0.72, these big multi-strengths.

And the fees, they are a little egregious, but they run massive organizations.

And no, we don't like paying them.

No one does.

But what we get is uncorrelated returns.

So true, what they call IDEO return, idiosyncratic.

Meaning we've stripped away all the factor returns, all of that.

And if somebody can really deliver true IDEO return, that's worth paying for.

What's not worth paying for in my mind is hiring a high yield manager to just give me high yield exposure for the most part, or hiring a beta manager, you know, a stock manager who, if I'm lucky, will give me a hundred basis points of alpha.

And basically I'm paying all those fees for him to replicate the index.

So when you think of market exposure, I don't want to pay anything for that.

But if it's true IDEO, it's worth paying for it because it's uncorrelated.

That's a perfect example.