Tom Wojcik: Thanks, Alex. So let me maybe start. So to your point, we did see an industry-wide pullback in trend following performance in the quarter really impacted by the historical levels of interest rate volatility that we saw following the banking crisis that ensued earlier this year. To put it in perspective, in some of those strategies, we saw roughly a 10% drawdown over a couple week period. But in context, those same funds were up 20% to 30% in 2022. So when you look over the intermediate term and certainly over the long term, performance in trend following continues to be very strong. I think importantly, to your broader question, trend following is one subset of our strategies, but really, it makes up only a piece of what we’re doing overall in alternatives sort of a subset of which is liquid alternatives, a subset of which is absolute return, a subset of which is trend following.
So when you think about that category overall, there are many others who started the year very strong, including relative value fixed income at Garda and Capula as well as some of our long-biased products. So again, we’re really seeing the diversification in our performance fee earnings-eligible book play an important role and have a very positive impact for us. Stepping back, our performance fee earnings overall are very well diversified with approximately $200 billion of performance fee-eligible assets across more than a dozen Affiliates and a multiple of that in terms of products across beta-sensitive absolute return and private market buckets. And all of those performance fees are cash, right? We only report on a realized basis, so that’s all cash to us.
And you’ve seen that diversity and that durability really play through over time. So I think when we look at our overall book, we feel very good about the way the liquid alternatives book has performed over the course of the past many years. And the setup going forward, certainly a near-term bump on trend following, but in the context of the last year and certainly, over the last 5 years, again, continue to have very strong performance there overall.
Jay Horgen: Yes. I guess — and I’ll just add my perspective on the more quantitatively driven firms, which really is the bucket of AQR, Systematica and Winton, those are broadly diversified by strategy. So some of them have equity strategies. Some of them have kind of cross market strategies. Some of them have trend-following strategies. So really, we’re really narrowing it down, as Tom said in his subset of subsets, to a fairly narrow set of strategies. The broader picture, the zoom-out picture is those businesses are doing well and are broadly diversified. So we’re excited about their opportunity, especially given the kind of last 12 months, last 3 years’ worth of performance.
O: Our next question comes from the line of Brian Bedell with Deutsche Bank. Please proceed with your question.
Brian Bedell: Jay, I think you talked about some new hires, especially the new Head of Client Solutions. Can you talk a little bit about what your sort of, I guess, long-term expectation is in general for the AMG partnership side of sales generation? I know it’s not as easy to define exactly. But I guess the big picture question would be, do you anticipate internal efforts at AMG distribution to materially positively influence the net flow dynamics over, say, the medium to longer term?
