beta

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

“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.”

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

“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…”

“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.”

“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…”

“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.”

“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…”

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

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

“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 …”