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We, we made in 2005, I believe. That 00:15:42 [Speaker Changed] Was first AI investment, 2005. So here’s the math, Barry. So of course, when you have that level of volatility in the market, right, it’s gonna put a little chill into people’s plans. Fair Cast was an investment, a series B investment.
In the big picture, this usually leads to having a “successful” life, because of this basic math: Traditional Success. =. I have found myself not being able to keep up with close friends, and had difficulty making or keeping plans, partly out of feeling overwhelmed with life details in general. How much work you do.
But there’s also a lot of, like at Wittel, you know, I was at Wachtel in 2005 to 2007, so really near the peak of a big merger’s boom. So like a component of it was like the standard derivatives math, right? And so like, you know, I got there and I learned derivatives math, right? And I love that.
Those types of excess savings were sort of the culprit for the conundrum in 2005 or whatever it was. And so, I write about it both — I do know, the simple maths about it how you can double shop ratios for uncorrelated strategies and then remind that it’s really difficult to find for uncorrelated strategies in long-only world.
So as much as I’m personally still a pretty strong skeptic of active management, I mean, I understand the math, and the odds are not in your favor. I read all those academic papers, I understand where the math comes from. It’s how math works. NADIG: — in 2005 is probably wrong. RITHOLTZ: Right.
Initially, it was started in 2005 and it was called Revolution, but it was just my capital. The math never seems to work out. CASE: Well, when we decided to do a road trip, we planned this for more than six months in advance. A little over a decade ago, we decided to open up to outside capital. What are they allowed to bring?
It was a wild ride because by the time you got, well, so in 2005, we went on a road show trying to tell people what we had learned, and there wasn’t a lot of reception. And in the 2000 at the 2005 conference, it’s kind of wild. Maybe the market hadn’t priced something properly. Sean Dobson : It was a wild ride.
So, I did the math, 20 million times a hundred. So, let me just repeat the math. And so, again, I went through this simple math. And he came up with a plan in late 2003 to solve this problem with the oligarchs and what he did was there was one oligarch in particular who was the richest oligarch. They said, seven years.
Quantitative investing was, was that the plan from the beginning? This was the era, 2005, 2006, all of my friends were looking to get banking roles. And I, and I really like the application of math and statistics and computer science to markets. You learn the math that can help you with, with market making operations.
And I’m like, dad, I found I need 25 grand to get going and my dad said send me a business plan. LINDZON: And … RITHOLTZ: I like your dad’s idea You should have created a business plan, just so you have it under your belt So now, I can’t imagine. LINDZON: No, so obviously, I did the business plan, I’m kidding.
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