My guest today is Mr Dan Rasmussen. Dan is the founder ofVerdad Fund Advisors. Before starting Verdad, Dan worked at Bain Capital and Bridgewater Associates. Dan graduated from Harvard University and received an MBA from the Stanford Graduate School of Business. He is the author of American uprising: the untold story of America’s largest slave revolt. He was named to the Forbes 30 under 30 list in 2017.Our subject today is an insider’s take on fund industry. During the conversation, we covered a few very interesting questions, such as:1) You showed in your article that from 1990 to 2010, PE investors have got an annual return of about 14.4% net of fees, which is about 6.3% better than theS&P 500 during the same period. However, in the last 7 years, which is 2010to 2016, the return from PE looks almost identical to S&P. I would like to have your thoughts on whether there is a regime change in the universe of PE investing? IF so, what has caused the change? 2) As an LP, how can I implement the principle of “price discipline” in my PE investing? Shall I ask the PE fund manager (GP) about his investment policy, and only give money to that GP who has an explicit policy on price discipline? Shall I go for an FOF, who will only invest in managers with a strict price discipline? 3) You wrote: Active investment management does not work for investors because it was not designed to benefit them: it was designed to benefit the managers. This statement comes across both aggressive and cynical. Does it mean that investors should forget about buying any active funds? But what about the activities that you are doing now? Would you also call it active investing? I hope you enjoy the conversation. It is in English.Our contact detail: [email protected]

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