00:30:27 · Sagar Kadakia
[00:30:27] S0: Yeah, that's a good question. Um, just from a compliance perspective, um when you build these businesses, that's like day one uh uh type of stuff. Um and I had been lucky to work in the space for quite quite some time, and so had been fortunate to you know work with a lot of compliance officers right before we kind of started this business. And so it was uh very important that not just from an MMPI and PII perspective, but every firm has their own compliance policies. Um and it was an attestations that they want to make, right? And and their own terms and conditions and what they like to uh uh ensure that their analysts are following and what they allow and don't allow, right? So no government employees, no medical doctors, no XYZ. And so these are all a part of this whole compliant kind of compliance posture, right? With MNPI, PII maybe being the most important thing. So um I want to start from that perspective, which is um everything that we have built here is very much through all that lens, right? From an MMPI and PII perspective, today we still have 100% human and loop review of every transcript that comes through for MMPI and PII, right? So we have a lot of operating procedures on hey, here's what we consider MMPI PII, and every transcript is being reviewed. If we identify it, most of the time we throw it out, sometimes we redact it. We're quite conservative here, and so often we will um toss the transcript because we don't want to change the meaning by by redacting anything, right? That that could have another impact in itself. So that's how we do uh uh the MMPI PII review. Obviously, we have a lot of models as well, right, that are assisting us um in reviewing. Um and so that's how we tackle that piece. And then just in general, the way that you have to build these firms is whatever your compliance policies and posture is, you have to be able to migrate all those policies into an application and then systematically enforce them, right? And so what does that mean? How are other ways that we prevent MNPI, PII? We work with a lot of funds where when one of their analysts um uh submits a question, our compliance team is gonna review those questions first, and then their compliance team is gonna review the questions.
00:32:36 · Sagar Kadakia
That's the first way to prevent MNPI and PII is to make sure that the questions themselves are not going to generate that level of information. And so we've kind of thought about it from uh every angle, right? From question review to response review to the overall compliance posture. What are the attestations, right, that and the T's and C's that someone has to sign off on, right? We're very clear, right, in all of the studies that we do. This is the information that we do not want. Do not give us this information, right? We don't want to know uh where you work, we don't want to know um any information that you feel is is private to your organization. And so those are all of the um uh steps that we have ultimately taken beyond just the review to ultimately ultimately prevent uh MMPI and PI. And we've done a really good job. Less than 1% of transcripts here contain that information. It's because of all the preventative measures that we have in place.
00:33:32 · Brett Caughran
[00:33:32] S1: It's interesting. Yeah, so you actually just prevent exposure, which is sort of an interesting element where if I'm as a human doing the call, for example, I worked at one firm where a compliance officer had to be on every single call listening in. But if there is exposure, there's no way to there's no way to walk that back, right? You're now in and so effectively what you're gating that, so there's there's no exposure, which I would assume a lot of funds like funds don't want MMPI everyone. Like you may think that they do not want it, right? Um That's right. Um so just preventing that exposure keeps that off the restricted list and uh has a sort of a full compliance, full audit trail. Yeah, super interesting.
00:34:12 · Sagar Kadakia, S4
[00:34:12] S0: That's right, because there's no live calls here, right? Everything is being recorded and reviewed, and so there's actually much less MMPI and PII than again the traditional form factors. Yeah, because if you're on a live call, once it's set, it's set. That's it. At least we have the benefit of redacting it or or removing it or removing the transcript. And so uh, like I said, I think there's a lot of benefits, and this is why we're seeing such a um massive increase in, I mean, every month we have set a brand new record of, I mean, for the every month since we started this has been a brand new record of the number of calls that the AI interviewer is is is doing. And it's because it's becoming a more acceptable form factor uh from a cost and speed perspective, but also from a compliance perspective, um, there's a lot more control um because it's not a live call. And so we're even seeing a lot of compliance teams preferring um uh this approach. [00:35:09] S4: Yeah.
00:35:09 · S4, Brett Caughran
[00:35:09] S4: Yeah. [00:35:10] S1: How do you think about selling to quants? I know like uh Tegus, for example, in the past had a lot of appetite from Quants to sell the API and they didn't because their view is you're sort of then turning further turning these alpha insights into beta at an execution speed. And maybe it's a little bit different here because there's each firm has their own agent, but there's been a big push to systematize fundamental investing in these qualitative insights, channel insights are a real key part of that. How do you think about that sort of quantitative or systematic um investor as a client?
00:35:47 · Sagar Kadakia
[00:35:47] S0: I think that's that's a that's a great question. So I I'm in the view of so I think earlier on in my career I was very much against things like APIs. I I was like, hey, we're not gonna sell to everyone. Um, you know, we're gonna cut off some people from access because then you know maybe they won't buy from from a firm like like Qualitate. Um, or hey, they're gonna have to work in our application. I think in today's age, if you do that, you don't have a business. You have to meet people where they are and you have to meet people in the strategy, right? You if you got to go headless, right? That's just where everything is going. That's where qualitate is going, right? Um and the alpha generation concept, right, is moving back to the firms because publicly available data at this point is worth zero. Um, right? Uh, everybody has the exact same information of what's available online. And so then the only uh alpha is the stuff that's in people's heads, right? And so uh that information is becoming more valuable. And there's a real orchestration layer of being able to pull all of this information in and actually generate insights and not like AI slop, right, on the outputs of this stuff. And so I think it's okay if people have information uh that is proprietary from us through an API or through a UI or through, frankly, whatever medium that they want to. It's ultimately what they do with that information, right? Two folks can have the exact same access to the qualitate library and they will almost certainly be making lots of different decisions because what other context are you feeding into your data warehouse? Are you doing short-term decision making, long-term decision making, right? All those types of things. And so um I'm not in the camp of uh um if we give access to a bunch of folks, the um uh uh the the alpha goes away because I think the alpha is ultimately up to the company on how they generate it.