00:00 Speaker A
The consensus, if there is one, most people are saying, okay, it’s overdone. Yeah.
00:05 Speaker A
within the sell off within software. Is that your view also?
00:08 Speaker B
I think consensus is saying, yeah, it’s overdone, but we don’t know what’s going to stop it from being overdone or what the catalyst will be for kind of who’s going to step in.
00:15 Speaker B
And let me just say this. Um, the problem is like with most of these, you know, indiscriminate sell-offs, really high quality software companies are being thrown out with the the the weaker software companies that are going to be really disrupted by AI.
00:31 Speaker B
And none of us really know yet. I mean, this is one of the most challenging things. We want to have as much information as possible when we make investment decisions and allocations, and none of us really know the extent to which these software companies are going to be viable or what can be replaced.
00:44 Speaker B
And you guys know this as well as I do. Every day there’s a new model introduced. Every day there’s a new capability, every day, and it’s not just the US models, it’s also the Chinese models.
00:54 Speaker B
Um, and so when you’re fearful or have uncertainty, it makes sense for a lot of investors to close out those positions and step away.
01:03 Speaker B
And there had been a lot of concentrated software positions. In my previous life, um I was a very heavy software investor and uh a lot of the names I look at now, I say there are some parts of those businesses that are going to get disrupted, but I can’t really model that yet.
01:16 Speaker B
So I think, yes, it feels a little overdone. I think people are going to stay on the sidelines for a while. Anyone who tries to punt and sort of trade it um on the bottom, may find themselves, you know, uh in a challenging position.
01:26 Speaker A
Yeah.