Kelly Granat

I think we keep having the conversation of how much exposure do we want because there's a recognition like we saw in the valuation bubble bursting of late 21, 22, that there are nuanced bets here that are distinct, but that if there's a problem in AI, so to speak, and we can define what that may look like, these are all gonna trade like one stock.

I think we keep having the conversation of how much exposure do we want because there's a recognition like we saw in the valuation bubble bursting of late 21, 22, that there are nuanced bets here that are distinct, but that if there's a problem in AI, so to speak, and we can define what that may look like, these are all gonna trade like one stock.

And so what is the drawdown we are willing to sustain or endure if and when that happens? And so that's, I think, the risk framework on top of this is the most exciting dynamic thing and we can all talk for hours and hours and days about all the opportunities it's going to create. And then I think nothing is a straight line.

And so what is the drawdown we are willing to sustain or endure if and when that happens? And so that's, I think, the risk framework on top of this is the most exciting dynamic thing and we can all talk for hours and hours and days about all the opportunities it's going to create. And then I think nothing is a straight line.

And so I think this is the benefit of having done this for a long time is that there's two steps forward, one step back. And so The deep seek thing last week was interesting, right? In terms of being like, oh, whoa, what is this? What does this mean? And what does this mean for LLMs? Did they have access to GPUs? Like, what do we know? What do we not know, right?

And so I think this is the benefit of having done this for a long time is that there's two steps forward, one step back. And so The deep seek thing last week was interesting, right? In terms of being like, oh, whoa, what is this? What does this mean? And what does this mean for LLMs? Did they have access to GPUs? Like, what do we know? What do we not know, right?

And I think we're still trying to answer those questions. And I think there was a knee-jerk reaction from the market. We will have more of these, right? That is just part of this. And so... That's not a reason to not be involved, but it does make you think about sizing. And we always want some measure of balance in our portfolio.

And I think we're still trying to answer those questions. And I think there was a knee-jerk reaction from the market. We will have more of these, right? That is just part of this. And so... That's not a reason to not be involved, but it does make you think about sizing. And we always want some measure of balance in our portfolio.

And we want several things that we're excited about that have idiosyncratic drivers that some of which may be tied to AI, some of many of which are not. And there are many thematics in our portfolio that we're super excited about.

And we want several things that we're excited about that have idiosyncratic drivers that some of which may be tied to AI, some of many of which are not. And there are many thematics in our portfolio that we're super excited about.

And our job is to be thoughtful about portfolio construction and make sure that all of our eggs are in one basket or things that we believe are discrete bets then ultimately trade like one. And so that's part of our challenge.

And our job is to be thoughtful about portfolio construction and make sure that all of our eggs are in one basket or things that we believe are discrete bets then ultimately trade like one. And so that's part of our challenge.

It's a really good question. somewhere in the middle. And I think we want ultimately the flexibility to pivot, right? I think that's what we've learned and experienced over doing this for a long time is that there are certain market backdrops that are conducive to certain styles of investing where you want to be more concentrated.

It's a really good question. somewhere in the middle. And I think we want ultimately the flexibility to pivot, right? I think that's what we've learned and experienced over doing this for a long time is that there are certain market backdrops that are conducive to certain styles of investing where you want to be more concentrated.

There are certain, you know, backdrops where you want to be less concentrated. There are times to go big on a bet when we feel like it's really underappreciated. There's times to recognize that a lot of what we're excited about, the world's excited about. And so we probably shouldn't be as big as we were. And so the...

There are certain, you know, backdrops where you want to be less concentrated. There are times to go big on a bet when we feel like it's really underappreciated. There's times to recognize that a lot of what we're excited about, the world's excited about. And so we probably shouldn't be as big as we were. And so the...

I would say the flexibility to recognize when we're in a very short-term oriented market or when there's duration, right? And part of that, and I think one of the things that's changed is, if I rewind the clock to 10 or 15 years ago, sitting in our research room and around internal meetings, we didn't talk about macro at all. It was just like, we're fundamental investors.

I would say the flexibility to recognize when we're in a very short-term oriented market or when there's duration, right? And part of that, and I think one of the things that's changed is, if I rewind the clock to 10 or 15 years ago, sitting in our research room and around internal meetings, we didn't talk about macro at all. It was just like, we're fundamental investors.

We are focused on what's happening inside of sectors, who's winning, who's losing, who are the best teams, who's executing. And to do that in 2025 and ignore macro, it's not possible. I want to be clear, macro is not prescriptive in terms of what we do, but it is a tool in the kit and something that has to be considered.

We are focused on what's happening inside of sectors, who's winning, who's losing, who are the best teams, who's executing. And to do that in 2025 and ignore macro, it's not possible. I want to be clear, macro is not prescriptive in terms of what we do, but it is a tool in the kit and something that has to be considered.