Welcome to another episode of Goldman Sachs exchanges, great investors. I'm Tony Pascarello,

global head of hedge fund coverage and global banking in markets and co-head of 1GS. And today, I have the great pleasure of sitting down with my friend Paul Britton.

Paul is the founder and CEO of Capstone Investment Advisors, a global investment firm with about

11 billion in asset center management. Capstone focuses on derivatives and strategies that

capture alpha and protect against downside risk. Capstone recently celebrated its 20th anniversary,

and so this will be a great opportunity to discuss how the investing landscape

has changed in the past two decades and where opportunities could be now. Paul, thanks for

doing this. Thanks for being here. You're welcome. I'd be here. Thank you for the invite.

So I want to get your take on the current environment, but let me just go back to the beginning.

Let's just start the beginning of Capstone. What were the origins? What was the impetus?

Why did you decide to launch the business in 2004? My DNA is in the options market making space.

And we built a relatively successful firm. And then I moved over to the States in 2000, 2001, to

look to expand our European operations into

the US.

By kind of 2003, 2004, I realized that the market making business and the providing liquidity

business was really becoming a technology arms race.

So the more capex you would spend, the higher probability that you had of being the most

successful in the game.

So it felt to me that it was a winner-takes-all game.

And who knows?

Today, I could be sat here of having capstone securities and competing alongside

Goldberg's Saks securities or Citadel securities,

...