Q1 2022 Silvercrest Asset Management Group Inc Earnings Call
Do I sound really raspy or that gap.
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Okay.
Yeah.
Good morning, and welcome to the Silvercrest asset Management Group, Inc. First quarter 2022 earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note. This event is being recorded.
As we begin let me remind you that today's call contains certain certain statements made regarding our future performance and our forward looking statements.
They are based on current expectations and projections, which are subject to a number of risks and uncertainties and many factors could cause actual results to differ materially from these statements made.
Those factors are disclosed in our filings with the SEC under the caption risk factors.
We're all such factor looking statements we claim the protection provided by the Litigations Reform Act of 1995, all forward looking statements made on this call.
Alright, you made of the date of hereof, and Silvercrest assumes no obligation to update them.
I would like to turn the conference over to Mr. Rick Hough, Chairman and CEO of Silvercrest. Please go ahead Sir.
Thank you good morning, and thanks for joining us for the first quarter of 2022 results call.
We concluded this quarter with the celebration of our 20th anniversary in business. We actually opened the first day of the second quarter and in 2002.
Despite the volatile economic conditions in markets. We're pleased with Silvercrest continued stable progress over time.
Our tenure has proven that the firm has to professional resources ability and strategy to execute through difficult periods to build the sustainable enduring business silvercrest discretionary assets under management or AUM, which drives revenue increased to $23 8 billion from the first quarter of 2021, which was a year.
Over year increase of eight 7%, primarily due to the volatile equity markets. During the first quarter of 2020 to silvercrest discretionary AUM declined by five 2%.
From December 31, 2021, which also led to a quarterly decline in revenue and adjusted EBITDA along with the continued progress in growing AUM year over year. The firms revenue increased seven 3% from Q1 2021 with a $33 5 million.
And revenue for the quarter ended March 31, 2022, the firm's quarterly adjusted EBITDA was approximately $10 $3 million or an annualized adjusted EBITDA run rate of $41 million and grew year over year by six 2%.
Adjusted diluted earnings per share increased seven 1% year over year to 45 cents per adjusted diluted share in the firm's first quarter 2022, adjusted EBITDA margin was 36%, which is a consistently high number for silvercrest Silvercrest high net worth business grew its relationships during the first quarter and we are pleased with incoming opportune.
<unk>, our net flows were muted as compared with historical norms Silvercrest institutional equity new business was solid during the first quarter and our opportunities remain excellent across silvercrest suite of proprietary equity capabilities. Our sub advisory relationships continued to add assets during the first quarter of 2022.
Market volatility and uncertainty have created long term opportunities that typically benefit the high quality of silvercrest capabilities.
We have a lot to accomplish to continue building the premier wealth and asset management boutique in the nation and we embrace those challenges that come with change on May three the company's board of directors declared a quarterly dividend of <unk> 17 per share of class a common stock.
The dividend will be paid on or about June 17th to shareholders of record as of the close of business on June 10.
With that I'll turn it over to you Scott for the financials, and then well take questions. Thanks, great. Thanks.
Again as disclosed in our earnings release for the first quarter discretionary AUM as of March 31st of this year was $23 8 billion and total AUR as of March 31 of this year was $31 2 billion revenue for the quarter was $33 5 million and reported consolidated.
Net income for the quarter was $12 4 million revenue for the first quarter was approximately $33 5 million representing approximately a 7% increase over revenue of approximately $31 2 million for the same period last year. This increase was driven primarily by market appreciation and net.
Client inflows in discretionary.
Expenses for the first quarter were $18 1 million representing approximately a.
29% decrease from expenses of $25 5 million during the same period last year. This decrease is primarily attributable to a decrease in G&A expenses of $8 5 million, partially offset by an increase in compensation expense of $1 million.
Compensation and benefits expense increased by $1 million or approximately 6% to $18 7 million for the first quarter of this year from $17 6 million for the three months ended March 31 of last year. The increase was primarily attributable to an increase in the accrual for bonus.
And benefits expense and salaries expense, primarily as a result of merit based increases and newly hired staff, partially offset by a decrease in equity based compensation expense due to a decrease in the number of unvested restricted stock units and Unvested nonqualified stock options outstanding.
Jen.
General and administrative expenses decreased by $8 5 million to negative <unk> 6 million for the three months ended March 31 of this year from $7 9 million for the three months ended March 31 2021.
This was primarily attributable to decreases in the fair value adjustment to the contingent consideration related to the Cortina acquisition of $8 8 million and occupancy related costs, partially offset by increases in travel and entertainment expense portfolio and systems expense.
Sub advisory and referral fee expense.
<unk> consolidated net income was $12 4 million for the quarter as compared to $4 3 billion in the same period last year.
We reported net income attributable to silvercrest or to class a shareholders for the first quarter of this year was approximately $7 6 million or <unk> 77 per basic and diluted class a share adjusted EBITDA, which we define as EBITDA without giving effect to equity based compensation expense and non.
Non core non recurring items was approximately $10 3 million or 36% of revenue for the quarter compared to $9 7 million or 39% of revenue for the same period last year.
Adjusted net income, which we define as net income without giving effect to noncore and nonrecurring items and income tax expense, assuming a corporate rate of 26% was approximately $6 7 million for the quarter or <unk> 46 and 45.
For adjusted basic and diluted earnings per share respectively.
Adjusted earnings per share is equal to adjusted net income divided by the actual class a and class B shares outstanding as of the end of the reporting period for basic adjusted EPS and to the extent dilutive, we add unvested restricted stock units and nonqualified stock options to the total shares outstanding to compute diluted.
Adjusted EPS quickly looking at the balance sheet total assets were approximately $197 9 million as of March 31 of this year compared to $229 3 million as at the end of 2021.
Cash and cash equivalents were approximately $57 million at March 31 of this year compared to $85 7 million at the end of 2021 total borrowings as of March 31 of this year were $8 1 million and total class a stockholders equity was approximately $86 3 million at <unk>.
31 of this year.
That concludes my remarks, I'll turn it over to Rick for Q&A, Thanks, very much Scott.
Welcoming questions at this time thanks.
We will now begin the question and answer session.
Can I ask a question you May press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys and to withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
And the first question will come from Sumit Moody with Piper Sandler. Please go ahead.
Thanks, Good morning, Rick Scott Hope, you're both doing well.
Wanted to start with.
I wanted to start with your thoughts maybe around what Youre seeing from your wealth management institutional clients through the volatile kind of first four months of the year.
Didn't see a material shift outflows in the quarter, which was nice but any update around what youre seeing around demand for certain strategies, particularly growth are there any areas. You think silvercrest does particularly well during these types of more prolonged downturn, maybe contrast that against what we saw in.
At the beginning of the pandemic and once in 'twenty.
Sure So I'll try to keep my remarks.
A bit short only because it's a bit open.
Open ended question. So you can follow up if you want I appreciate it.
Two questions there.
In terms of what we're seeing.
Yeah.
With regards to the flow is number one that you see is a pretty muted which is the word I used in my introduction.
If it was considering the volatility and the fact that we're headed into tax season in which there was a pretty good quarter actually.
But the flows overall as you saw from unit this quarter was basically entirely driven by.
By the markets I would point out that the existing net flows for the quarter were.
Just about $163 million out of the firm very small number compared to our base. However, it kind of hides a surprisingly strong inflow from from some new clients we had.
A good quarter $1 billion of inflows into our institutional business.
We had a fair bit of new flows in for our high net worth business.
And just to give you an idea.
Just to get a bit of detail here, while it was negative $162 million again, just kind of a very small rounding error when it comes to our <unk>.
That left the firm.
There were only five clients that were effectively responsible for close to $400 million of net.
Net outflows this quarter.
Balancing.
Some preparation for taxes.
A few other things so.
The muted overall.
Flows in terms of history.
Was was kind of hiding some really good news under underneath the hood.
We grew our number of relationships as well, so I'm pretty pleased with all of that especially given the volatility in the markets.
In terms of demand in cloud.
Our our capabilities.
On the institutional side, that's just going to be very client specific in terms of what pieces of their asset allocation, they're looking to fill.
I can't say there has been some significant shifts in the marketplace over this short period of time.
The performance in our growth equity strategies.
Has been very very good and continues to be.
Despite I think the very well publicized volatility in particular on the growth side of the market.
No matter, where youre looking.
It's clearly.
In a bear market in certain sectors or areas. It's been on the decline for a good year.
Our team has done extremely well so that's going to help us clearly as.
As we try to grow that business on the value side.
Had some.
Relative performance challenges, but as you noted in your note.
Recently, our performance remains quite strong.
And it is in periods like this that we often pick up a lot of good relative performance.
It is in periods like this that we.
We serve our clients extremely well, whether that's on the institutional high net worth side.
They are hiring us to be a really steady hand on the tiller and guide them through volatility like this in this firm.
Over 20 years has been through significant periods of volatility not.
And not to mention the global financial crisis, and it's really when we have the opportunity to shine and where our stable focus on high quality portfolios and the fundamental attributes of the business as we invest in really shine.
In other.
Ways I think this firm can benefit.
Because we may be seeing a conclusion to the kind of easy money that has led to a tremendous amount of speculative kind of investing.
Where frankly the market in a number of asset classes kind of look like a casino and.
People chasing the latest shiny object.
Putting an end to that and.
Hopefully not abruptly because that can have other economic consequences, but putting an end to that quite frankly is going to be very constructive.
For firms like ours, whether youre talking about our investment capabilities or frankly, youre talking about.
The ability of this firm to make use of capital.
In a competitive way.
At a at a high.
Our return on equity for our shareholders.
So.
I wanted to be shorter and this comment but it was just it's kind of a big question.
They have to address different aspects of it. So if you want to follow up on anything that's a very general comment about how I see things.
No I appreciate that's exactly what I was looking for thanks Rick.
So just wanted to shift over to index inclusions is that something you guys are focused on sort of in the future here you're thinking about any maybe structural elements you can address like dual share class that help you get.
Again included in future indices or is that not something that.
Yes. It is.
It's not something I'm focused on.
I think I've been really clear my job is to execute our long term strategy.
And continually organically growing this business.
Frankly, I don't I don't get too caught up in.
Doing a lot of mechanics too to massage.
Either the stock or.
Where we look in terms of indexes and the rest.
It looks like we'll be in the index. According to the estimates which is great. We've been in it before it would be good to be back.
What really happened and what you saw it connects to my last comment you saw a lot of companies that had zero revenue spacs very speculative investments that were running away up in valuation with nothing to show for it that were all put in the index and what you saw fall out where a lot of small companies, especially financials.
We've seen a reversion.
We've seen a rotation towards value, which the biggest component of which is financial.
We've seen a rotation towards companies with real cash flow healthy balance sheets, which of course were one off.
And we've seen a deflation of those more speculative investments, we're going to come back in on our own merits.
So no we're not doing anything, but obviously, it's because I think to go back into the index.
Okay, great. Thanks, and then just last one for me here just Cortina, obviously has been performing really well since that deal is closed and then a great contributor just wondering how conversations are going with potential M&A targets. Today can you talk about how pricing looks for the opportunities youre in great engaging with that maybe you think fit well.
With Silvercrest, and then kind of secondly, how those private valuations are being impacted today is it similar to what we're seeing on the public side or is it not.
Flow through yet yes, you would think you would think that there would be a connection between.
Very large markets that are mark to market on a regular basis and what's happening in the private markets.
It's a little too soon to say that I am seeing an effect.
However, however, I think it's notable that it looks like that there are some significant.
Players on the private side, who look to be.
Shopping some of their assets.
<unk>.
Which I didn't expect.
Looks to be and if thats. The case that says there's some players in the market.
We think thats, what theyre holding outlook look a bit expensive right. Obviously, there is a buyer for every seller so someone else thinks it doesn't.
I think it's too early to see where that's going to go.
We have been in discussions and I will say that.
In the first quarter, the things look despite the underlying volatility of the quarter.
And a lot of it started happening closer to the end of the quarter, but.
Things still look expensive and so.
Honestly this volatility that's one of the things I was alluding to.
They lead to that I think is healthy.
I think there's just been a ton of fuel leading to speculation.
And we have not had a sustained downturn or increase of interest rates.
We've hit these bumps in the road that are really tested that and pushed it. Maybe this is a time, where where that will happen so stay tuned.
That is an aspect, where I think somewhat disciplined with their capital and looking to be highly accretive to shareholders.
Could benefit.
It is sustained and of course I would include this firm among them.
Number two.
With regards to.
Asset management acquisitions, I think I've said before certainly certainly in other forums, we are not really on the on the hunt for other institutional capabilities or asset management firms.
The Cortina people were really special with a.
Capability that we strongly desire, but we're not seeking to do every possible strategy.
We wanted to do the core strategy extremely well we have them at this point our job now is to organically grow the capabilities. We have that is job number one it's not looking to grow this company with more capabilities at this at this at this time, so any M&A is going to most likely be strategic.
<unk>.
And the high net worth space in key cities or client bases that are in cultures that are compatible with this firm.
Alright, thanks for taking my questions.
My pleasure I am sorry.
Of course.
Scott and I, both have analogy of some sort this morning.
The next question will come from Sandy Mehta with evaluate research. Please go ahead.
Yes, good morning, Rick and Scott.
Can you give us.
An update on the OCI.
And also I was wondering if you have a number for your actionable pipeline.
Yeah, good morning Sandy.
The OCI O is.
Come down in <unk>.
Entirely as a result of market. So it's just under $1 billion right now are about a $1 billion.
No news there other than market exposure as you would expect.
<unk> seen with regards to this quarter, that's the news really.
In terms of the pipeline for that business it remains.
License and strong it is.
Most of the $600 million.
And.
That's a nice conservative number.
Ice.
I think we're going to do quite well.
Over the next.
Quarter.
One thing to keep in mind I think is that the volatility in the markets.
Really highlights for fiduciary is that as board members running investment committees.
What kind of guidance and help they really need to navigate.
Everything is running up in the environment that we've had for a sustained period of time. It makes the job look easy.
So this is another reason to kind of welcome.
This disruption that we're seeing right now.
It's why in my opening comments I referred to the fact that.
The uncertainty creates long term opportunities that typically benefit the high quality of this firm.
It specifically.
It is now when people start to realize maybe they need more help.
Than they otherwise would have thought in that really.
The dynamics I would say of an investment committee sitting on the board of an endowment or foundation. So.
I'm quite optimistic about what we're going to do with that pipeline and the conversations we're having on the on the institutional equity side. The pipeline is a little smaller I think I reported close to $1 8 billion last quarter made just been shy of that.
And we're right around one 6 billion on the actual pipeline and for those who don't tuna and regularly that pipeline is invite only rfps semi finals and finals. So it is a very strong.
Concrete pipeline that we can measure with confidence and it has a pretty high realization rate we win a significant portion of the pipeline the pipeline coming down from $1 8 billion to $1 6 billion.
A good example of that.
It's largely because we have wins.
During the quarter as I said underlying those kind of muted net flows.
Frankly, very good with regards to closed accounts closed accounts this quarter were excellent and it was very small.
And underlying that was with some significant inflows into the institutional business. So the pipeline just reflects that it remains very strong very happy about it.
Okay.
<unk>.
Silvercrest stock is up 25% year to date.
It's down nearly 20 any updated thoughts on the buyback I mean, I still mean.
This is my view of the stock is still very undervalued.
What are your thoughts currently on the buybacks.
Look were strongly in favor of buying back our company as I've said.
It's been difficult primarily because of volume limitations.
We have not revealed or talked about what our pricing strategy is around our stock.
We're just going to let our results speak for themselves.
It's really nice to see investors realize the value in this company.
Yes.
Part of this has to do with the rotation towards companies that are so stable able to deliver over the long term have strong cash flows a conservative balance sheet.
Et cetera.
<unk>.
Given the M&A market and what I would I have to say about it earlier and its relative expense in cost if we were to engage in.
Some of the prices that are in the marketplace I just don't think it's a good use of capital. So we're going to buyback what I think is the best firm in our business, which is silvercrest.
But I have nothing more to say about the relative price.
Versus the market or our fundamentals.
And one last question.
You've mentioned the growth strategies did remarkably well even in this down market. So, yes, very strong numbers and up and down market can you talk specifically.
About what flows youre seeing that.
And did the.
The underlying stocks tend to have a lot more liquidity in these good stocks versus say value stocks. So is there potential for more flows than perhaps a new product.
Anything specifically on quota.
Sure. So on the product side, we are incubating.
Multi cap growth and large cap growth.
And.
Those are important asset classes for our high net worth group, we have a super talented team we have.
And we'll expand the intellectual capital in Milwaukee.
To support those capabilities.
<unk> shipped products there opportunity in small cap growth.
With the strong relative performance that you you referenced.
I just have a tremendous opportunity they should really stick out compared to what's happening.
In small cap technology.
In other small cap issues I mentioned, obviously technology in particular because of the great volatility there and the pipeline there.
<unk> is pretty strong.
It's part of the total institutional pipeline that gave you.
Usually don't break it out.
Happy to do so right now I think that's close to $400 million.
And.
For a very niche.
<unk>.
Products and capabilities.
I think thats good.
One thing we have to get over is for the marketplace to be more aware of those capabilities.
Constantly in touch with consultants and working to introduce that to the long term I also think that.
Given the volatility in technology in small cap issues.
There are a lot of institutional investors and others amidst what's going on right now that have a bit of a wait and see attitude only because they may be a bit shy of the asset class given what's occurred and and what's happening to their other capital in their asset class, but I think this is going to shake out really well in our favor.
Behind a pretty good pipeline.
Great. Thank you so much youre welcome Sir.
The next question will come from Christopher <unk> with Janney Montgomery Scott. Please go ahead.
Hey, Thanks, good morning.
Rick and Scott can you just remind us on sort of the lag of revenues.
As you go quarter to quarter and do you see anything shifting on the EBITDA margin as a result of that.
So I'm not sure what you mean by the lack of revenues.
Because most of our revenue is billed quarterly in advance.
The stub period revenue or things that we might do in arrears at the end of the quarter are due to two new flows into the business.
<unk>.
So.
That's the major lag I can think of most.
Most of it.
These quarterly in advance, which is nice it gives everyone a lot of visibility into what what's going to happen and it helps us manage the business.
Okay.
You can respond in a second if I didn't address your question with regards to EBITDA. This.
This is as I noted in my introductory remarks being over 30% of EBITDA is still pretty historically high for the firm I'm just a normally normal quarter basis that is to say a quarter that doesn't have performance fees, which we crystallized at the end of the year. It can always bumpy up significantly as we did last year.
I've said this before I'll say it again, we want to invest in the business, we want to hire new intellectual capital to.
Portfolio managers to organically grow the business when I do that there is a lag towards new revenue.
That's the other form of lag you get as people build businesses at this firm and that can hit EBITDA. We have made those hires over the past two to three or four years.
It's just that we've been able to grow faster than we've been making the investments.
Which is great.
Are going to continue to try to do that it may become more apparent when I do those hires and spend that capital and growing this business organically.
On EBITDA during volatile markets, but it hasn't come to pass yet.
But I think I think.
You can expect.
You can expect us not to be consistently this high I've said that repeatedly it's just nice that we are.
The other lag that's possible and again please respond after I'm done.
He is he's flows into our growth strategies in Milwaukee.
The billing there does tend to be more in a.
Arrears, it's just smaller compared to the size of the entire firm.
Brian and Chris also.
With great performance in Milwaukee.
The.
Certainly the hope and expectation is that you will end up with additional flows but again those type of flows will lag performance and.
Challenging to predict when those may come in.
Alright, great No I think you've addressed my revenue question. So thank you for that.
From the standpoint of some of the global Dislocations do you think youll see some benefit from that as future quarters play out I know Rick you touched on that a little bit on your earlier remarks.
Yeah I do so some of it is.
One part is just the fundamental strength of this firm not just its people culture intellectual capital, but how we manage this business. So that's number one.
Number two just to go back to some of my earlier comments.
People in this kind of disruption.
Recognize they need help.
It doesn't look so easy to do it yourself anymore and.
That's even heightened for people who are fiduciaries on investment committees, but look large families have the same issue, we're going to benefit from that third the way we manage money.
Benefits from this kind of market, we're going to stand out.
We have picked up some really good relative performance in this market.
<unk>.
Fourth it may not be the disruption you mean however.
Our capital is global.
And the U S dollar U S markets U S economy still stands out even in difficult times, even if we go into a recession.
We're going to be the cleanest sure.
Dirty laundry basket.
And.
I can tell you we are seeing opportunities.
In Europe .
That I have not seen in some time, we have significant very significant European relationships already.
Have sub advisory relationships.
That are quite strong and we're seeing really good.
Regular inflows that are that are only picking up.
And that was happening during the pandemic when we couldnt even go to Europe .
But some of these other disruptions, whether youre talking about economy or youre talking about.
War.
We're seeing more and more interest from from foreign capital interested in the U S and interested in the kind of.
Yes.
Work that firms like ours do so that is an opportunity it's something that's real that I'm seeing and I'm optimistic about.
Great. Thank you very much Lee inside this morning, Youre very welcome. Thanks always good to hear from you Chris.
The next question will come from Chris Sakai with singular research. Please go ahead.
Hi, good morning.
Good morning can you talk about.
Our new hires and how that's looking in the volatile market.
So.
Sure.
I'm always looking for great talent to <unk>.
<unk> there is someone who is going to fit into this great culture.
He is going to have the right way to manage money that fits with our philosophy.
He has the ability to bring.
Assets and clients I mean at the end of the day, that's our business.
And has a long term perspective in terms of.
A place of work and we've been really successful at doing that when we do.
As well as building the next generation here.
We made meaningful investments in people to bring up the next generation, we're working very hard on our third generation.
Not surprisingly given our 20th anniversary that I, just just mentioned in my opening remarks, its really important to the firm and the sustainability of our strategy.
It is hard to do.
And.
We want the people, we hired and succeed before we do bite off too much and so we did a fair bit of hiring going into the pandemic and we've done a bit during.
Those folks are doing really well.
But this business takes a long time to succeed and it takes a long time, there's a long apprenticeship to building up your next generation.
<unk> of whom have become partners in recent years.
I am becoming more aggressive on hiring.
And what we might be able to do with hiring because as I mentioned earlier of the expense in the M&A market.
But the kind of people on hiring a fiduciary theyre not they don't tend to be brokers.
Which is a very different market.
Very different kind of business from ours.
And so it's going to be it's going to be very deliberate.
As we do that but I have not need significant high level hires.
In recent months.
But I am on a look look out and that had something to do with my comments that I made about our EBITDA margin at which I've made great early over the past.
Two years as I mentioned earlier, we've just been able to grow faster.
And then the the expense of the compensation.
Great, Okay and then.
Can you talk about.
Your dividend and when would.
Would you see an increase there.
Well I've never I've never given any future guidance of any kind really other than.
To give color around.
Our pipelines and how we feel about the environment of the business generally.
In the context of our.
Four pronged strategy, which we talked about a fair bit.
So I'm not going to speculate on that I will say that just to state. Our basic policy. We think it's very important to return capital to shareholders on a very regular basis and on a meaningful basis, given the size of the company.
In the markets, we want to reward shareholders on a regular basis for holding this this this stock and return capital on that form amongst other things that we're doing so it is an important component.
Yield is an important component that distribution.
And we have a policy if we can afford to do so of increasing it on a regular basis, which if you look at the history of this firm we have done on a very regular basis.
It has been an important part of the compounding return to our shareholders and we continue to believe that we.
We do not have a yield target per se.
It's more about making sure that we are doing it at a meaningful level you can interpret that as you wish and that we have the cash.
And the C Corp, and from the business to sustain whatever dividend, we put in place for a prolonged period of time despite market disruptions, we want to avoid cutting if we can.
We're in very solid position to sustain where we are but that said.
The company is doing really well and we have increased it on a regular basis. So.
We'll see what happens in future quarters, but that's about as much as I can say about it yes, Chris just for your reference.
<unk>.
The last increase the dividend latter part of last year, just to remind you of that.
Okay great.
Youre.
Youre welcome.
Again, if you have a question. Please press Star then one.
This concludes our question and answer session I would like to turn the conference back over to Mr. Rick Hough for any closing remarks. Please go ahead, Sir great. Thank you so much for joining us.
US for our first quarter results really appreciate the good questions. This morning.
As I mentioned, despite volatile markets and.
Global news in the economy, I'm very pleased where we stand as a company our progress.
It looks good the opportunities are strong.
I just want to reiterate it's environments like this.
We're silvercrest can shine, we may have to take a step back or two that's normal in this business I don't view the past quarters as step back. This is you're just looking at the market.
This is normal stuff.
Whatever it may be economically or in the markets.
This firm is well poised to continue executing our strategy on behalf of our clients as well as shareholders.
And it's frankly, something that has some side benefits that we welcome over the long term.
So thanks very much for tuning in.
Look forward to talking to you next quarter. Thanks.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Sure.
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