The l/s hedge fund industry is at another strategic crossroads. Jones model SMs had all the capital and all the talent for a long time. That density of talent drove spinoffs/startups. The industry was at equilibrium. Then SMs had more capital than talent. MMs created more GMV via leverage available for talent and opened more supply of seats for talent. But unlike SMs, the MMs prescribe more precisely the unit of production required to be successful. Today SMs have an uneven distribution of talent and capital across SM funds, there is a generation of 40+ talented something’s wondering where or whether they can find a seat to express their knowledge/leverage their experience and MMs have more people than ever with more capital than ever trying to produce the same unit of production. Inject AI as a variable into this equation and the complexity increases. Hybrids have a huge competitive advantage currently but that’s also got cyclical and secular elements. I think the market and LPs would benefit from a new type of fund or strategy that connects talent and capital differently. But does so efficiently. Either SMs and MMs can seize this opportunity, but requires both to disrupt their old models. LPs can also fund something new that does things differently.