Absolute return

There are other investors who have achieved higher returns than he and Warren have.

Now obviously from Absolute Returns, because they've been doing it for so long, they have one of the biggest portfolios of all time.

But Charlie's net worth was only a few billion dollars.

And I say only as though it's not a lot of money.

So I think for better or worse, I think it's still the benchmark that most people care about the most.

I mean, nobody's going to be happy when, and also Absolute Returns.

Both Absolute Returns and Bitcoin Outperformance.

Yeah, that's the only two things people care about in my view.

What do you guys think?

And so if you think about that as your portfolio objective and what can be realized, multi-strats should be a core holding in any institutional portfolio, any individual's portfolio.

And I think that's why, as Joe mentioned, you see that the most sophisticated pensions, sovereign wealth, endowments, You know, their absolute return allocation is around, I think it's 20%.

So multi-strategy funds often come with perceived challenges, Joe, as you mentioned.

And these are things like closed to new money, i.e. capacity.

Well, naturally, Kumar, I'm going to say yes.

And when it comes to liquid markets in particular, it is our multi-asset investing division, BXMA.

You know, Joe mentioned this earlier, but across BXMA alongside our Absolute Return business, which largely deploys capital through external manager partnerships, we also have a direct investment business that today manages $18 billion and runs 11 internal strategies that really span the spectrum of asset classes.

And historically, that platform has really served institutional investors, but the same capabilities are increasingly supporting the needs of high net worth investors and families where access to this type of return and risk stream has historically been limited.

The historical playbook would tell us, yes, we should be worried.

So we talked to Billy again, who is the head of Absolute Return and Opportunistic Fixed Income team at J.P. Morgan.

He's the portfolio manager on the Strategic Income Opportunities Fund, which is an absolute return fund, meaning we don't wanna lose money.

And it's really interesting, before we talked to him, you sent me a chart of their returns, and it's very, it's a very, a line that doesn't move at all.

They've been heavily invested in cash.

All right.

So before we get into what today looks like in terms of the market opportunities, what is the purpose of this fund inside an investor's portfolio? What's the mandate here?

J.P. Morgan Strategic Income Opportunities Fund has always been and was designed as what's known as an absolute return fixed income fund.