WEBVTT - Single Best Idea with Tom Keene: Ted Mortonson and Francis Gannon

0:00:02.520 --> 0:00:07.040
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:14.080 --> 0:00:18.640
<v Speaker 2>Single best idea in a most unusual time. I really

0:00:18.640 --> 0:00:21.280
<v Speaker 2>tried to read it on the eighty billion dollar equity

0:00:21.320 --> 0:00:26.040
<v Speaker 2>transaction of Google. Absolutely fascinating and some of the whispers

0:00:26.040 --> 0:00:29.720
<v Speaker 2>there of another time and place are noted. We started

0:00:29.760 --> 0:00:34.120
<v Speaker 2>strong in that regard to Ted Mortenson, legendary it Baird

0:00:34.240 --> 0:00:38.360
<v Speaker 2>on technology. Ted Mortensen on this moment.

0:00:38.360 --> 0:00:41.800
<v Speaker 3>This is a war for talent, and if you really

0:00:41.800 --> 0:00:45.159
<v Speaker 3>look at all these companies, it's all about engineers. I mean,

0:00:45.240 --> 0:00:47.880
<v Speaker 3>at the end of the day, it's product innovation through

0:00:48.400 --> 0:00:54.120
<v Speaker 3>brilliant engineers. And I think they're just stop gapping, you know,

0:00:54.200 --> 0:00:58.000
<v Speaker 3>with the intensity of free cash flow on the Capex builds.

0:00:58.000 --> 0:01:01.000
<v Speaker 3>They're just finding another avenue to employees.

0:01:01.320 --> 0:01:04.280
<v Speaker 2>Ted Martinson on the two minute summary for you is simple.

0:01:04.480 --> 0:01:07.679
<v Speaker 2>Actually it'll be the fourteen second summary. It's just simple.

0:01:07.840 --> 0:01:13.919
<v Speaker 2>He's a huge optimist about this innovative moment across America.

0:01:14.160 --> 0:01:16.800
<v Speaker 2>I want a joy to have Franciscannon with this legendary

0:01:16.840 --> 0:01:20.160
<v Speaker 2>at the Royce Value Trust. That is small cap small

0:01:20.200 --> 0:01:23.039
<v Speaker 2>caps doing much better I think than the zeitgeist and

0:01:23.160 --> 0:01:26.840
<v Speaker 2>is undergood. Francis Gannon of Boston College and the Royce

0:01:27.120 --> 0:01:27.840
<v Speaker 2>Value Trust.

0:01:28.280 --> 0:01:30.600
<v Speaker 1>Value for us is, you know, I think value is

0:01:31.520 --> 0:01:33.080
<v Speaker 1>like most things on Wall Street, is one of the

0:01:33.120 --> 0:01:37.320
<v Speaker 1>most overused words on Wall Street. People can find value

0:01:37.360 --> 0:01:39.280
<v Speaker 1>in a lot of different ways, just like quality, qualities

0:01:39.280 --> 0:01:41.200
<v Speaker 1>and other overuse word. Everybody says they're you know, what

0:01:41.240 --> 0:01:43.840
<v Speaker 1>they own his quality. You know, balance sheet is very important.

0:01:43.840 --> 0:01:46.040
<v Speaker 1>We tend to focus on companies that don't need leverage

0:01:46.120 --> 0:01:49.400
<v Speaker 1>or access to the capital markets, which you know, again

0:01:49.480 --> 0:01:51.720
<v Speaker 1>to that idea of being able to sleep over at night,

0:01:51.800 --> 0:01:55.800
<v Speaker 1>especially with a small cap company. Management teams are incredibly important,

0:01:55.880 --> 0:01:58.560
<v Speaker 1>and I think of us as following small cap companies

0:01:58.600 --> 0:02:02.960
<v Speaker 1>through life cycles when the founding team is managing it,

0:02:03.000 --> 0:02:05.040
<v Speaker 1>when they leave it to the next generation who doesn't

0:02:05.040 --> 0:02:07.640
<v Speaker 1>manage it as well when the professional manager comes back in.

0:02:07.800 --> 0:02:11.400
<v Speaker 1>So we try to know these businesses incredibly well, and

0:02:11.800 --> 0:02:13.600
<v Speaker 1>you know, we follow them for a long periods of time.

0:02:13.760 --> 0:02:17.360
<v Speaker 2>Francis Gannon of the Royce Value Trust on podcasts, we're

0:02:17.400 --> 0:02:21.239
<v Speaker 2>out at Spotify, at Apple and of course on YouTube.

0:02:21.639 --> 0:02:30.120
<v Speaker 2>It's single best idea