Welcome to Live from the Compound. My name is Michael Batik. I'm sitting here with Ted Cides.

Today Schwab announced that they are in talks to buy TD Ameritrade. On the same day, Lewis Bacon announced

that he is closing his hedge fund after 30 years.

These two stories are so emblematic of what happened in the asset management industry

over this decade.

What's going on?

What happened to the head for head front industry? Stick

around. We'll get into it in a minute. So Ted, thank you very much for being here.

A pleasure. Good to see you, Michael. So Lewis Bacon has been doing this for I think 30

years.

He's got $8 billion under management,

has seen all sorts of market regimes.

Where is this money good to go?

Yeah, well, that's a great question

because we all know what the scrutiny has been because the returns on the

hedge fund industry I think there's a pretty good chance that that money doesn't

necessarily turn around and go to another hedge fund. It's just kind of another

reason for people who have been around to recycle it somewhere else.

So if it's not going to a hedge fund, this is not retail investors, right?

They're not going into SPY.

So this is institutional money, endowments and pensions primarily.

Where are they going, are they staying in the alternative space I would

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