Beta

“Alpha is going to get harder and harder and harder. It already has gotten harder. AI is going to actually speed up that as well. And so as investors thinking about beta is going to become more and more important over time and having the best beta you possibly …”

“Like this notion of beta basically becomes completely useless when you have privates. It's not helpful.”

“I would say that it's a bad time for beta because we've Really pulled forward a lot of market returns this way, at least in real terms, because we sort of have to inflate the economy into these asset levels. But it's a great time for alpha because since so muc…”

“Many early stage startups launch a beta with a presumption and maybe even the dependency that all that's being Tweaked in the beta is, is bug fixes. You know, you'd like, you really don't want to learn anything net new about your customer in the beta. You're, …”

“Market to your customers differently than to the market that your customers should already be probably on a beta before you even announce it to the market.”

“You should pay huge attention to any source of alpha. It's probably beta.”

“Sometimes the right size is small, and you have to be happy with that. You can't grow beyond where that alpha component is going to be reduced. There are plenty of people who are great at running a billion, but then they end up running five billion, and they s…”

“So when you look at expert investors on the buy side, They're doing really well. They're generally doing somewhere around like a hundred, a 120 bips or so better than the beta.”

“So much of what has become true over the last five years, all this is about is marketing and telling your story. It's gotten away from the purity of executing to what you say you're going to execute against, because most of it's just about collecting assets an…”

“The thing that has always attracted me to the seed stage has been that there's no beta in going from zero to one. That's all alpha.”

“When you put a portfolio together that there is hidden beta in everything because everything is either the pure stream. You're either Lending or your owning, right? And then you put a lot of complication around those two concepts in whatever you're structuring…”

“We figured we'd open it up as a beta, which was a cute way that technologists have of releasing buggy products.”

“Private equity for sure. You can't separate the alpha from the beta. That's just one package.”

“The fee for beta today is nothing, right? I mean, you can go and buy a passive index of whatever beta you want for nothing. The alpha is what's valuable, and people are happy to pay for that and should pay for that.”

“95% of managers, the bulk of their returns are some form of beta.”

“There weren't diminishing returns. If VHS got ahead, it would get further advantage. The whole thing was quite unstable, and if small events tilted you towards beta or VHS, my analogy was this was like bowling a ball perfectly down the middle of an infinitely …”