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So I took it upon myself to go off and took a course in bond math, took another course in derivatives and realized the underlying fundamental concepts were barely, I mean, it wasn’t even high school math in most cases. I didn’t know what any of these terms meant.
One, one is true and I’ve always said is that I wanted people to stop, ask if I could doing math. And no one asked me if I can do math anymore with a degree from Booth, particularly in econometrics and statistics. So people really ask you, you take French and can you do math. Two reasons. 00:51:34 [Speaker Changed] Right.
Its index and its benchmark. I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. And big consumer and healthcare. Learn math, learn history. a year, way over both. Morningstar five star gold rated.
I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. I wasn’t that typical person that did a number of, you know, internships during the summer, had that …. RITHOLTZ: Applied Mathematics, Quants, those guys, yeah. I was econ and kind of geeky.
And because remember, Lehman had the Lehman Agg and that was the benchmark. There is above benchmark returns to be generated by active selection of credit quality duration and specific bonds. Healthcare, education, not hugely cyclical, not interest rate sensitive. How are we doing in literacy versus math versus science?
SEIDES: If the S&P is your benchmark, which it isn’t for these pools of capital. RITHOLTZ: What should be their benchmark? So the proper benchmark for those pools has to look a little bit like the underlying assets they’re investing in. So what do you use for a benchmark? 14, 15% a year? RITHOLTZ: Right.
I’m kind of in intrigued by the idea of philosophy and math. So I found myself getting kind of bored with my math problem sets, and then I could shift to philosophy and then go back and forth. And it’s gotten ver like the average active fund has gotten closer and closer to the benchmark over the last five years.
You’re doing a lot of math in your head on the Fly. I’m doing, I’m doing an awful lot of math in my head on the fly. So, you know, we, we, we got involved and created a benchmark, a commodity indices at the time. 00:16:40 So there was a way to judge yourself. Did you actually outperform the market?
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