Speaker 1: You're listening to Bloomberg Business Week with Carol Messer and
Speaker 1: Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. You're listening
Speaker 1: to Bloomberg BusinessWeek on Bloomberg Radio. We welcome everyone who's
Speaker 1: watching on Bloomberg TV, and really welcome Kathy would who
Speaker 1: is back with us. She's the founder, CEO and CIO
Speaker 1: of our investment and she joins us on zoom from Florida. Cathy,
Speaker 1: is so good to have you here with us. I
Speaker 1: feel like I have a million questions, um to talk
Speaker 1: to you. How are you? I'm great? How are you doing?
Speaker 1: Carol delighted to be here as always, Well, it's great
Speaker 1: to have you here. Trying to keep up with the
Speaker 1: news flow. And I gotta say, I think a lot
Speaker 1: of us were a little surprised by Elon Musk and
Speaker 1: his investment in Twitter, that passive investment nine point two percent.
Speaker 1: You are a big investor in Tesla, have been for
Speaker 1: a long time. I think about two and a half
Speaker 1: percent of your funds are in Twitter as well. Was
Speaker 1: this a smart move by Elon? Well? I I do
Speaker 1: think for the moment it's passive, but he's certainly making
Speaker 1: a statement, and it's a statement about censorship. He he
Speaker 1: doesn't agree with censorship. UH. For as smooth functioning democracy
Speaker 1: as he has tweeted, I believe uh and so I
Speaker 1: think he's sending a strong signal to the new CEO.
Speaker 1: UH and I I also know there's some controversy about
Speaker 1: why Jack left having to do with this new CEO.
Speaker 1: So a few messages there. Have you talked to Ellen
Speaker 1: at all about it? No? I have not, Okay, um,
Speaker 1: and would you be buying either more Tesla or Twitter
Speaker 1: on the news and let's throw on Tesla also having
Speaker 1: this record first quarter? Um, is this a catalyst to
Speaker 1: buy more of these shares? In your view? On Tesla?
Speaker 1: We post our our trades at the end of every day,
Speaker 1: so many will know that we have It is the
Speaker 1: largest position in our flagship portfolio and in most portfolios
Speaker 1: where we hold it. But we have been selling recently
Speaker 1: because of how well it has done relative to the
Speaker 1: rest of the stocks in our portfolio. So it had
Speaker 1: as levitated relative and uh and so it's been a
Speaker 1: good source of cash. We've taken profits and redeployed them
Speaker 1: into other stocks that we thought were being unfairly penalized. Here. Uh,
Speaker 1: and I think one of the reasons for that is
Speaker 1: Tesla's in the indexes the broad based disease, and most
Speaker 1: of our other stocks are not. And uh, that's a
Speaker 1: big problem out there in terms of the way capital
Speaker 1: is being allocated these days in the public equity markets. Kathy,
Speaker 1: how much would Tesla have to fall for you to
Speaker 1: start buying again? Well, you know, even now, we're going
Speaker 1: to put out another model on geth hub In. I'm
Speaker 1: going to say within a week. Our last one is
Speaker 1: from about a year ago, and uh, you'll see from
Speaker 1: that model that our price expectation at that time was
Speaker 1: three thousand dollars. So there's still a lot of running
Speaker 1: room ahead for Tesla. But relative to the other names
Speaker 1: in our PORTFOLI, even though that's a you know, a
Speaker 1: triple or nearly a triple, other names in our portfolio
Speaker 1: we believe will deliver much more than that over the
Speaker 1: next five years. Because they have been hit so hard,
Speaker 1: they're not in indexes, and so when there are risk
Speaker 1: off periods, traditional investors really diversify and sell our stocks
Speaker 1: as they move closer to their benchmarks, the benchmarks against
Speaker 1: which they are measured. So it's a great buying opportunity
Speaker 1: for us. I will say, I can't believe how long
Speaker 1: that buying opportunity lasts, from February of a year ago
Speaker 1: to do a few weeks ago. But we think the
Speaker 1: concentration of our portfolios towards our highest conviction names will
Speaker 1: pay off. As for Twitter, Um, well, it's having a
Speaker 1: beautiful day to day, and I think there are some
Speaker 1: investors relieved that someone is willing to speak up and say, hey,
Speaker 1: you're going to ruin this platform if you continue to
Speaker 1: censor it, uh in somewhat um h random ways. Uh. So,
Speaker 1: so I think that's good. I will say this could
Speaker 1: be setting up for another leadership change at Twitter. Uh
Speaker 1: you never know, and so that will bring with it
Speaker 1: perhaps some uncertainly, uncertainty and dislocation, so especially as it
Speaker 1: relates to advertisers. So so we shall see so cathy
Speaker 1: uncertainty potentially at Twitter, a potential leadership change. Who are
Speaker 1: the names that you would like to see lead Twitter?
Speaker 1: Who could do a great job in your opinion? Oh,
Speaker 1: I am not going to speculate on that. Um, you know,
Speaker 1: and to be honest, we haven't thought about it that carefully. Uh,
Speaker 1: there are names flying around but I wouldn't want to
Speaker 1: throw out anything there unless unless we felt very strongly
Speaker 1: uh so we we will wait to see whose names
Speaker 1: are put forth. But whoever is put forth, And I'm
Speaker 1: not jumping to this conclusion automatically. I'm saying it's one
Speaker 1: of many possibilities. It will either be our garwall, changing
Speaker 1: the policy of the company to you know, really open
Speaker 1: source uh the the censorship, or or call people out
Speaker 1: on censorship, or it will be a management change. I
Speaker 1: I don't know what's going to happen at all. You
Speaker 1: use the platform a lot, Kathy, you own the platform.
Speaker 1: What are the specific changes that you would like to see?
Speaker 1: Perhaps Elon Musk, if he would be vocal about it,
Speaker 1: push for at Twitter. Well, I think I think he's
Speaker 1: already pushing for it. He's been pretty vocal talking about
Speaker 1: censorship not being good for the platform, which is you know,
Speaker 1: really the world's platform, uh sort of engagement platform. And yes,
Speaker 1: we do use it liberally. We have not been banished yet,
Speaker 1: but you never know, you never know. Well, I'm curious
Speaker 1: to you know, in terms of Elon Musk, Kathy, you know,
Speaker 1: looking at Twitter making this investment doesn't make you to
Speaker 1: look at some of the other social opinion platforms that
Speaker 1: are out there. In social media platforms, whether it's Meta,
Speaker 1: which has certainly been beaten up big time. UM, doesn't
Speaker 1: make you want to kind of look at them as
Speaker 1: effort either further investments or initial investments. UM. Not really.
Speaker 1: I think what's happening the ground is shifting underneath social media.
Speaker 1: I don't think anyone understood until Facebook reported or gave
Speaker 1: guidance for the first quarter how provocatively disruptive uh TikTok
Speaker 1: had become. I mean, I know I've seen my children
Speaker 1: and and and their generations spend a lot more time
Speaker 1: on TikTok and and wondered, you know, how how would
Speaker 1: this impact Facebook? But I also know that there's a
Speaker 1: huge advertising shift from linear TV to social So you
Speaker 1: have those two opposing forces. While it appears that TikTok
Speaker 1: is being much more disruptive than we thought, and not
Speaker 1: just Facebook, but Netflix has talked about out it as well.
Speaker 1: This is competition for the consumer's time. Uh. And so
Speaker 1: I think again, the ground is shifting. And if you
Speaker 1: think about it a Facebook, a Facebook, when you think
Speaker 1: about Instagram and Facebook itself, it's all about me, me, me,
Speaker 1: it's you know, I am central. If you think about TikTok,
Speaker 1: it's about how can I entertain you. It's a completely
Speaker 1: different d n A. So I'm not so sure that
Speaker 1: that Reels is going to make it the way that
Speaker 1: Stories did. Stories was about me, me, me, Facebook got
Speaker 1: that TikTok is a completely different animal here. Hey, Kathy,
Speaker 1: gotta ask you about Chinese stocks. You and I have
Speaker 1: certainly had conversations, and you've made investments in, You've gotten out,
Speaker 1: You've got you know, and I just want to know
Speaker 1: where you are in Chinese stocks right now because we've
Speaker 1: seen quite a bounce back in the last couple of days,
Speaker 1: still down a lot. If I look at something like
Speaker 1: the Nasdack Golden Dragon, would you be committing new money?
Speaker 1: Do you have faith in Chinese authorities actually making Chinese
Speaker 1: comping much more transparent for U S investors, especially when
Speaker 1: it comes to financially sensitive information. Well, I think that
Speaker 1: the government is showing that at the margin, it's going
Speaker 1: to make moves, but they're going to be marginal moves.
Speaker 1: In this case, I think there are three years to
Speaker 1: um to comply with our audit requirements. Uh, so they're
Speaker 1: they're they're talking that they're they're they're they're they're talking,
Speaker 1: and so we'll see what happens. Uh. You know, common
Speaker 1: prosperity to us means that profit margins are high. Profit
Speaker 1: margins are not a good thing, and so we have
Speaker 1: steered away from anything with a high profit margin. Uh,
Speaker 1: And we have focused on those companies and we've we've
Speaker 1: in our flagship strategy, we're out completely. We've shifted towards
Speaker 1: something like CE Limited in Singapore, but in a more
Speaker 1: specialized strategies. We're looking for very low margin companies that
Speaker 1: are consistent with common prosperity, uh, you know, really distributing
Speaker 1: goods and services into lower tier cities, for example, or
Speaker 1: providing transportation so expung uh neo. We have bought their
Speaker 1: very low margin. It's all about next gen transportation in
Speaker 1: in a world where you know, human driven cars are
Speaker 1: are still relative to the eligible drivers, still very low percentage.
Speaker 1: So uh, we're we're interested there JD Logistics in the
Speaker 1: logistics area using drones, but lots of innovation. They're doing
Speaker 1: a lot again pushing into the lower tier cities. So
Speaker 1: we're we're a bit gun shy. We don't think that
Speaker 1: the Chinese government is thinking very much about treating capital well.
Speaker 1: But we know there are huge opportunities consistent with common prosperity,
Speaker 1: and so we will have an allocation. But until things
Speaker 1: change dramatically meaning more of a friendly to capital, we'll
Speaker 1: probably keep that exposure pretty low. Hey, Kathy, one thing
Speaker 1: I mean you and your team are very good about research, right,
Speaker 1: and you open it up to the world, and you
Speaker 1: want to have these conversations. I am curious when we
Speaker 1: look at the world specifically what's going on in Ukraine
Speaker 1: and Russia. China's relationships specifically with it seems like wanting
Speaker 1: to continue some kind of relationship with Russia. Um, how
Speaker 1: is that problematic? Do you think for investors going forward
Speaker 1: and ultimately Chinese companies and is there kind of a
Speaker 1: rethink on what our global markets ultimately will be like
Speaker 1: longer term? You are a longer term think individual, Yes, yes, Well,
Speaker 1: one thing I do know about China is uh, it's
Speaker 1: a survivor and it really does want to be UM.
Speaker 1: It really wants to be in the lead in terms
Speaker 1: of innovation. So we, given our will focus on disruptive innovation,
Speaker 1: are not going to dismiss China. But these geopolitical strains
Speaker 1: are not going to be good again. It's capital unfriendly.
Speaker 1: We do know that innovation solves problems. And starting with COVID, UH,
Speaker 1: we we we we had a lot of problems. Now
Speaker 1: with the Ukraine Russia, the Russian invasion of Ukraine, we
Speaker 1: have a lot more problems. UH. And so we think
Speaker 1: innovation generally is going to help solve those problems. And
Speaker 1: so we're happy that the market is now turning its
Speaker 1: sites back to innovation being a good thing and non
Speaker 1: index stocks being uh an area of great opportunity. All right,
Speaker 1: we are, of course talking with Kathy Would, the founder,
Speaker 1: chief investment officer and CEO of ARC invest And for
Speaker 1: those of you watching a Bloomberg TV triple take with
Speaker 1: our Bloomberg TV colleagues will begin right now on radio.
Speaker 1: We're going to continue our conversation with Kathy Would. So, Kathy,
Speaker 1: you know one thing I want to get to and
Speaker 1: this is something you guys have been writing about over
Speaker 1: at ARC, and that is passive versus active when it
Speaker 1: comes to indexing. There has been, as you know, so
Speaker 1: much money going into passive indexing UH, and investments not
Speaker 1: a good thing. Ultimately, do you think investors in that
Speaker 1: world are going to ultimately be burned. One of the
Speaker 1: reasons I founded our invest is I believed that, taken
Speaker 1: to an extreme, which is where I think it is now,
Speaker 1: that index based investing was going to lead to the
Speaker 1: most massive misallocation of capital in history. And I think
Speaker 1: that's happening. And you saw what happened to our pure
Speaker 1: play innovation based strategy over the past year. When fears
Speaker 1: about inflation and interest rates picked up. There was risk off,
Speaker 1: UH and this movement back to broad based benchmarks and
Speaker 1: other benchmarks and away from our strategies. And so we
Speaker 1: saw a like in vite Go from sixty dollars to
Speaker 1: seven or eight dollars in the span of a year. UM, this,
Speaker 1: this doesn't make any sense, UH, we have in our portfolio,
Speaker 1: and we have used this risk off period to concentrate
Speaker 1: towards our highest conviction names. We've gone in the flagship
Speaker 1: portfolio from fifty eight names I believe, down to thirty five,
Speaker 1: which is essentially saying, Okay, we're not so sure that
Speaker 1: these these twenty two or twenty three stocks are going
Speaker 1: to be UH the as a pure play of disruptive innovation.
Speaker 1: As we are that these other thirty five are. And
Speaker 1: of course Tesla is uh the leader of the gang there. So, UM, yes,
Speaker 1: we've we've been um, we've been surprised that it, uh,
Speaker 1: the risk off lasted that long, that the shift into
Speaker 1: passive and indexed lasted that long, But it set us
Speaker 1: up for some great opportunities here. Um, as we have
Speaker 1: so many problems to to solve, and innovation is the
Speaker 1: right way to solve those products. Catty, what would you
Speaker 1: say to somebody who's listening right now who says, study
Speaker 1: after study that they read shows that the on average,
Speaker 1: the active manager does not outperform the benchmarks, especially after
Speaker 1: fees year in and year out. Yes, well, we certainly
Speaker 1: have our our our time horizon is a five year
Speaker 1: investment time horizon, and I would agree with you. I
Speaker 1: think the vast majority of active managers have underperformed. We
Speaker 1: have significantly outperformed over that five year period at a
Speaker 1: compound annual rate. Uh. And I think one of the
Speaker 1: reasons there is under performance is this benchmark hugging behavior.
Speaker 1: So they they are very close to their benchmarks and
Speaker 1: then they and and that to me is is as
Speaker 1: close to passive investing as you can get and then
Speaker 1: they charge a fee for it. We are not in
Speaker 1: those indexed stocks. We are really focused on the future,
Speaker 1: not on the past. Indexes are where they are because
Speaker 1: of what has happened historically. UH and the those at
Speaker 1: the highest end of the index is the largest positions
Speaker 1: are there because of past performance. If we are right,
Speaker 1: we are facing the most UH, the most disrupted innovation
Speaker 1: in the history of the world. Five innovation platforms genomic sequencing,
Speaker 1: adaptive robotics, energy storage, artificial intelligence, gens, blockchain technology. They
Speaker 1: involve fourteen technologies and there are all kinds of convergences
Speaker 1: between and among them. So they're setting up for explosive
Speaker 1: growth opportunities, but they're not being well followed well research.
Speaker 1: That's one of the reasons we do publish our research.
Speaker 1: We want to UM. We want to educate investors, but
Speaker 1: not just investors, we want to educate parents and grandparents.
Speaker 1: It's here how, here's how the world is changing. Make
Speaker 1: sure to guide your children or your grandchildren towards the
Speaker 1: right side of change so they don't end up working
Speaker 1: for these companies who are going to be completely disrupted.
Speaker 1: So I think many people you know a case in
Speaker 1: point and I don't think Facebook is going to necessarily
Speaker 1: be a bad stock going forward, but the fact that
Speaker 1: a disruptor like Facebook could be disrupted so quickly, uh,
Speaker 1: is an important case in point. Well, this is what
Speaker 1: I love, Kathy, and I think about the years we've
Speaker 1: been talking about, and you go back seven years or
Speaker 1: so when you started, like your thoughts about disruption and innovation.
Speaker 1: How has it changed kind of where we are today,
Speaker 1: especially as we're watching you know, what's going on in
Speaker 1: Russian Ukraine, And I feel like the energy conversation has
Speaker 1: pivoted very quickly as well. Yes, well, a couple of
Speaker 1: things are happening. Many people have focused on my very
Speaker 1: long term oil price for twelve dollars, is it? Yes?
Speaker 1: And I say that to make a point. You know,
Speaker 1: we started on this journey, uh, you know, towards energy
Speaker 1: conservation and so forth after OPEC quadrupled oil prices in
Speaker 1: the early seventies to twelve dollars. That's why I used
Speaker 1: that as a marker, uh. And so that was the
Speaker 1: beginning of the journey. Now we are moving into overdrive
Speaker 1: given what's happened to energy prices on the one hand,
Speaker 1: but just as important, where we are in the migration
Speaker 1: to electric transportation. We have hit escape velocity. UH. Last
Speaker 1: year there were four point eight million e vs sold
Speaker 1: when I first spoke to you, Carol, and it was
Speaker 1: either two thousand fourteen or two thousand fifteen. I believe
Speaker 1: I H. S. Was predicting that in the year two
Speaker 1: UH that there would be two d and fifty thousand
Speaker 1: electric vehicles sold, different four point eight million, and we
Speaker 1: were much closer to the mark, much closer to the market.
Speaker 1: Now we see forty million in five years. That will
Speaker 1: be almost a half of all autos sold. So I
Speaker 1: do do believe it is possible that oil demand peaked
Speaker 1: in two thousand nineteen. It is not back there yet,
Speaker 1: and I believe this price increase is destroying demand. You're
Speaker 1: seeing substitution. I see a lot more scooters and bikes
Speaker 1: around here, for example, or fewer trips. And you're also
Speaker 1: seeing a shift, now accelerated shift towards electric and China
Speaker 1: is a huge part of this. Now China may have
Speaker 1: coal as the biggest part of its electric generation, but
Speaker 1: it's not oil. So I have a feeling we're going
Speaker 1: to be shocked at how much the demand for oil
Speaker 1: under performs expectations. What's what's the time frame on that though? Like,
Speaker 1: you're right you say that twelve dollars to shock, But
Speaker 1: I mean I do wonder what is your longer term?
Speaker 1: But I mean, so, when is it that we see
Speaker 1: oil come way down because of this shift being much
Speaker 1: more aggressive? Well, it's been very interesting. In two thousand eight,
Speaker 1: the oil price peaked at I think it was a
Speaker 1: hundred and forty seven dollars per barrel. Well, given what's
Speaker 1: happened in Russia Ukraine, I thought, okay, traders are just
Speaker 1: going back to that old, old high because you know,
Speaker 1: who knows where this is going now with this supply shock,
Speaker 1: And uh, it didn't get there. It got to one
Speaker 1: thirty and then it retested it got to one fourteen.
Speaker 1: Maybe if it doesn't go any higher than that, maybe again,
Speaker 1: the all time peak was in two thousand nine at
Speaker 1: one and we are going down from here. As as
Speaker 1: Europe ends up in recession, we think it's probably there.
Speaker 1: China is slowing down dramatically, and the US is much
Speaker 1: slower than we think most people realize. What about when
Speaker 1: it comes to energy generation in general, Cathy, because you've
Speaker 1: got to charge these electric vehicles, some way, and we're
Speaker 1: seeing spikes and commodities, We're seeing spikes and energy across
Speaker 1: the board, and we're seeing the difficult way or impossible
Speaker 1: way that Europe is trying to wean itself off of
Speaker 1: Russian energy. So so what replaces ultimately those those fossil fuels. Well,
Speaker 1: I think from a national security point of view right
Speaker 1: now that our government and I think we're seeing signs
Speaker 1: that it's starting to move in this direction, should encourage
Speaker 1: as much oil production as possible. I know E s
Speaker 1: G and other considerations are out there, but national security
Speaker 1: is paramount right now and helping our allies as paramount.
Speaker 1: So that's the first thing, and that's the other thing
Speaker 1: that we'll get oil prices going down. Another energy source
Speaker 1: that we think is on the rise and as actually
Speaker 1: as we have eel On Musk and others starting to
Speaker 1: support it is nuclear, new modular nuclear energy. Uh. And
Speaker 1: that is the cleanest, that's one of the cleanest energy
Speaker 1: sources out there. We know we've got hydro in the
Speaker 1: United States. I think that's about nuclear. Is about natural
Speaker 1: gas and then coal. So obviously natural glass gas is cleaner,
Speaker 1: much cleaner than coal. We're we're starting to wean ourselves
Speaker 1: more and more from that. So I think nuclear is
Speaker 1: going to make a renaissance in the next few years.
Speaker 1: We're seeing China rolling out nuclear. We're also seeing I
Speaker 1: heard recently that Japan, even after the shock of food Kashima,
Speaker 1: when they decided to close all of their new nuclear
Speaker 1: facilities down, I think they've started reopening some of them,
Speaker 1: probably in the safer areas of the country. Safer meaning
Speaker 1: from earthquakes and such um. Because because of what's going
Speaker 1: on in the energy sector now. So I think the
Speaker 1: big surprise is going to be nuclear. Hey, Kathy, I
Speaker 1: gotta ask you, and you've always been so good about
Speaker 1: you know, the highs and lows of this business, and
Speaker 1: you know it's it's a lot easier when the returns
Speaker 1: are coming in and the money flows are coming in
Speaker 1: and your fund has had a really significant art innovation
Speaker 1: if I think about it, Uh, you know, has had
Speaker 1: a significant bounce back, um, but still it's way down
Speaker 1: from its highs. Here. You know, what's the difficulty for
Speaker 1: you and your team, uh and your investors about this pullback?
Speaker 1: What's the trickier part and kind of being true to
Speaker 1: your long term investment theories well, I have to say that, UM,
Speaker 1: we are so grateful to our clients because the retention,
Speaker 1: the staying power has been phenomenal. Last year, for example, Uh,
Speaker 1: we net inflowed seventeen billion. Now, the gross inflow last
Speaker 1: year was twenty one billion. Most of that was at
Speaker 1: the ginning of the year, but we kept seventeen billion
Speaker 1: of that. And I think what's happening is our investors
Speaker 1: are averaging down. Uh. This year we have been net
Speaker 1: inflowing and in fact, since you know, there were two
Speaker 1: very controversial virtual moments on TV associated with ARC, we've
Speaker 1: inflowed more than a billion. So uh. And what's also
Speaker 1: very interesting, UH is our inflows picked up. Uh and
Speaker 1: are and it looks like our our performance turned right
Speaker 1: around the time of the first FED hike. We think
Speaker 1: that the Fed hikes are priced into the market. Uh.
Speaker 1: Look at the two year treasury yield. You'll see most
Speaker 1: of those are priced in. And very recently, the first
Speaker 1: FED president that I heard UM equivocate at all was
Speaker 1: Cash Kari from Minneapolis, and he said, hm, hmmm, huh.
Speaker 1: Maybe you know, the yield curve is not suggesting that
Speaker 1: this this inflation that we're seeing now is going to
Speaker 1: be sustained, and that was a bit of a breakthrough
Speaker 1: I think for the market. Not many people noticed it
Speaker 1: because other FED presidents and governors are saying, maybe we
Speaker 1: go up fifty basis points at the next one. Well,
Speaker 1: if we go up fifty eight basis points, then the
Speaker 1: inversion of the yield curve that we've seen recently um
Speaker 1: is going to get worse. Right that he is associated
Speaker 1: with either uh lower than expected growth or inflation in
Speaker 1: the in the following year. Hey, Kathy, we don't have
Speaker 1: a ton of time with you, and I want to
Speaker 1: make sure that I'm understanding how you're thinking about the
Speaker 1: future for ourc invest Now ARC has more than twenty
Speaker 1: billion dollars in assets under management across just nine e
Speaker 1: t f I'm wondering, when you think about thematic investing,
Speaker 1: thematic ETFs, where the next opportunity for ARC is, what's
Speaker 1: the next E t F? Well? Uh, well, first let
Speaker 1: me set this up. So we have, yes, twenty billion
Speaker 1: in the e t f s about double that in
Speaker 1: total for the firm, a little more than double that. Uh,
Speaker 1: and what do we think is next? I think what
Speaker 1: what many people find interesting is that we have so
Speaker 1: few e t f s and so much in a
Speaker 1: U M in E t f s. And the reason
Speaker 1: is these E t f s are going to scale
Speaker 1: with these enormous opportunities. What's what what are we going
Speaker 1: to do in the future, Well, there are there are
Speaker 1: a few, we have a few ideas, but what we
Speaker 1: really expect is what we have out there right now
Speaker 1: is going to enjoy outsized growth if we're if our
Speaker 1: research is correct. Uh, and these five innovation UH platforms
Speaker 1: have hit escape velocity. We believe they have. UH. So
Speaker 1: in terms of what what what is in UM we
Speaker 1: did file a registration for a a crossover fun that's
Speaker 1: a forty act fund, but it is not an E
Speaker 1: t F So uh, stay tuned, Stay tuned. All right,
Speaker 1: Any do you anticipate any kind of announcements anytime soon? Well,
Speaker 1: we're waiting for the SEC to to approve and then
Speaker 1: and then we're going to be very excited to share
Speaker 1: share some some news about you know, a new distribution
Speaker 1: platform and a new way of doing things and including
Speaker 1: staying true to our brand, disruptive innovation, transparency and democracy,
Speaker 1: democratizing the opportunities. All right, We're going to leave it
Speaker 1: on that note. Kathy, so appreciate all this time and
Speaker 1: getting to talk about so many different things. As always, Kathy,
Speaker 1: thank you, be well. Kathy would of course founder CEO
Speaker 1: and c I O of our invest investment, joining us
Speaker 1: on the zoom from Florida, but really covering so much
Speaker 1: ground of the stories and topics that are so relevant
Speaker 1: in today's market environment. Tim. Yeah, especially her comments about
Speaker 1: Twitter and what potentially Elon Musk could do with Twitter, Uh,
Speaker 1: you know, realizing that we have to look to Delon
Speaker 1: Musk has tweeted even though he's a passive investor in Twitter,
Speaker 1: he's got a lot of thoughts on what the company
Speaker 1: needs to do and seems like Kathy agrees and and
Speaker 1: both of them are very familiar with really the power
Speaker 1: of Twitter and use it really effectively.