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?
00:55:58 · Molly O'Shea, Jaimin Rangwalla
[00:55:58] S1: What do you think his secret is? [00:55:59] S0: He plays a lot of padel tennis these days. Don't know, I feel like that's his new hobby, I think it keeps him energetic, keeps him young, and he's very curious and always thinking about what's changing. And it's almost like a mindset, right? You're just in the mindset of like, what is changing? How do we capitalize? What is changing? How do we capitalize? And it's hard. A lot of people like being in an environment where like you have comfort and coziness, and you're like, I know what's here, which is great for some people, but for this industry, for this sector, to be successful, you always have to be thinking about what's changing and how do I catch it. [00:56:32] S1: Amazing place to end. Thank you so much. This was a lovely conversation. [00:56:36] S0: You very much. [00:56:36] S1: Hey, it's Molly. If you enjoy our interviews, check out our newsletter, sorcery.vc, where we deliver a once a week top deals and tech headlines email, and also go deeper on our podcast interviews. Subscribe to Sorcery today, and don't forget to subscribe to the podcast on YouTube, Spotify, Apple, or wherever you listen. Link in description to sign up.