00:49:24 · Jaimin Rangwalla
[00:49:24] S0: Yeah, so I think that what we've been doing and what has worked is we're thinking about what is the leading edge change and who are the companies that are driving that leading edge change? And so NVIDIA almost sets the standard for what is the accelerator market going to look like in terms of capabilities two years down the road, And what are the things that they're changing? Broadcom does as well. TSMC does as well. What are areas that they're changing? Because they're all trying to figure out ways that they can alleviate their own bottlenecks, that they're trying to reduce certain costs in some areas that they feel like there is a technology advancement, but they're also trying to optimize their profitability too. And there's a concept, let's say, that people are talking about, okay, today the way that accelerators connect is using copper wires. It's like a way that you send data. There's a scenario two, three years from now where there's gonna be less copper and more optical, or at least maybe not less copper, but more optical, right, because it can transmit data faster, but there's limitations. It needs to be longer distance and things like that. And so I think that we're always trying to figure out that's just one example, but there's so many. Like every new version of NVIDIA's accelerators have things that they're taking out, adding, etcetera. So we try to follow where the change is happening and what is that industry looking like today. Is it an industry with like 50 players? Well, that's not that great. Is it an industry of consolidated players where maybe they're making something for a legacy market, and now all of a sudden they're in a massive windfall of demand that they weren't expecting, and they can't really add supply. And so, oh, wow, maybe that's the industry that we need to go and chase down and follow. And so we're really trying to stay at the forefront. We have a big investment in OpenAI and Anthropics, so we're constantly talking to them about what are things that they're doing to optimize their models, what are technologies that they're using. So we try to do research to really stay at the forefront of where the change is happening.
00:51:08 · Molly O'Shea
[00:51:08] S1: It is so crazy because whenever someone mentions OpenAI and Anthropic, I just assume they're a public company at this point, but they're still not. So how are you thinking about these trillion dollar IPOs?
00:51:21 · Jaimin Rangwalla
[00:51:21] S0: I think that it's great for the market. I think that leadership changes in tech. We've done the studies on it. Almost plus or minus every five years, a quarter of the top 25 in tech usually come out and a new four, five, six come into the top 25. It's like a very basic analysis. I'm sure if we did it more detailed, it would show even more granularity, but tech changes and leadership changes. And I think that these companies are, in my mind again, let's just say that they're all effectively worth over a trillion dollars of SpaceX, OpenAI and Anthropic, I mean, they have already catapulted themselves into the top 30 companies in the world in terms of size. And so it doesn't even matter whether they're public or private. They've already reached that milestone. And so to me, when they go public, it's just going to be investors that didn't have access to it. The retail investor who had to only focus on public stocks now gets access to these stocks, and it's going to be great. I don't think that there's this concern in my mind of, Oh, that means you've to sell MAG seven or this and that, because the S and P's 60 or $70,000,000,000,000 of market cap, we're talking about $31,000,000,000,000 companies. It's not like there's some massive flush out of all these other stocks that need to fund this. It's all in line with kind of the size of the IPOs that probably are necessary in this market. I think it's great that there's new names that come out there because if it's just the same names over and over, it doesn't really represent kind of the beauty of technology.
00:52:48 · Molly O'Shea
[00:52:48] S1: As the CIO of CO2's public sector, I would be remiss not to ask you about risks. What are the biggest risks that you're watching?
00:53:00 · Jaimin Rangwalla
[00:53:00] S0: Look, the biggest risk is that there is some technology on the other side that materially changes where some of these shortages exist today. And that risk exists only in the grand scheme of the types of stocks that would be impacted by that. If there was, let's say, the deep seek moment that happened last year, another moment like that happens where someone figures out a model that can do all the calculations with less power, less semiconductors, less memory, all of that. If that happens, it is probably good for the long run of AI because that means that the adoption is going to happen faster, more people are going to use it. If AI becomes materially cheaper, there's the whole Jevon's paradox argument, which is like, yeah, the cheaper it becomes, the more people will find creative ways to use it and do other things, right? Humanoids are still kind of in the back burner, but maybe if it gets cheap enough, like there'll be way more dollars that get put behind solving that problem, and all of a sudden, like other things get accelerated. So I think that that is a risk that I'm looking at as someone who has a mark to market portfolio every day that I'm thinking about. Then, could there be some regulation that comes out of nowhere that maybe changes or dampens the ability to kind of grow unconstrained the way that things are today? But generally speaking, think that it's, we're talking about a topic of national security at this point, and so I actually think that the regulatory environment is going do what it takes to allow for as cooperative of an AI environment as possible going forward. But those are kind of the things. And we did another study at one of our previous calls about every ten years there's what we call a crisis or like a down 30 kind of moment for the markets, and every year there's probably a down 10. I feel like last year we had our down 30 in the tariff moment, and that was kind of in between crisis or correction. We had 2022 that was already like a down 30 for the markets. And so I feel like we're at a point now where there's always going be risk, but I think that we're really set up with a great secular trend.
00:55:00 · Molly O'Shea, Jaimin Rangwalla
[00:55:00] S1: Other than being on camera more, what are you most looking forward to this year? [00:55:05] S0: I think that we moved into this office, which is great. And just overall, one of the things that I say about Philippe is he's an amazing investor. He's in the Hall of Fame of risk management investing, but what people maybe don't fully appreciate is that he's an amazing CEO too, right? Building the business. I joined when we were like 12 people, 700,000,000 in assets. Today we're over $80,000,000,000 200 people, multiple offices. It's crazy when I sit back and think about the twenty year trajectory, and I think that he probably still comes to the office before I do, leaves after I do, works more than I do, and doesn't rest, right? And so to me, the journey is still we talked about the inflection leading to another inflection. I feel like we're, as an organization, are at our second inflection. Maybe probably not second, like fifth inflection, but we're at another inflection where I think we're really on this journey to really just break out. [00:55:58] S1: What do you think his secret is?