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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the radio, plus mobile, lapt and on your radio.

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Speaker 1: This is a Bloomberg Business flag from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Pellet. The Dow, the SMP, NASDAK all declining

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Speaker 1: right now. We do have the tenure up one thirty second,

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Speaker 1: the yield there one point eight four percent, SMP five

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Speaker 1: hundred index on track toward a two month low. Gold

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Speaker 1: down n to twelve fifty five, a drop of one

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Speaker 1: and a half percent. Crude oil lower a little change

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Speaker 1: down one cent eighteen a barrel, that is a drop

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Speaker 1: of less than point one percent. SMP down six down

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Speaker 1: three tenths of one percent, the down down seventy six,

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Speaker 1: a drop of four tenths of one percent. Nastack down

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Speaker 1: twenty two points, a drop of point five percent. I'm

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Speaker 1: Charlie Pellett, and that's a Bloomberg Business flash. Charlie Pellett,

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Speaker 1: thank you so very much. Now it's time for et

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Speaker 1: F Report, brought to you by Van eck Vector's e

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Speaker 1: t F S. Expect more from your muni's marget tax

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Speaker 1: slash Muti Vanek access the opportunities now with our A

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Speaker 1: t F report Catherine Cowdery. Nearly nine e t f

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Speaker 1: have launched in the US this year. Almost all of

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Speaker 1: them have been thematic or smart beta funds. Bloomberg Intelligence

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Speaker 1: analyst Eric val Tunis on why there's a focus on

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Speaker 1: thematic E t F this year. Some thematic ETFs get assets,

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Speaker 1: some have a performance, and some sort of die on

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Speaker 1: the line, and that's sort of what we're seeing. And

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Speaker 1: it's just like this almost like this land rush of

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Speaker 1: people trying everything. Somebody referred to it as a spaghetti

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Speaker 1: bozuka to see what sticks on the wall. Boutunist explains

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Speaker 1: why so many thematic A t s are being launched

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Speaker 1: and are in the pipeline. The fact is, the normal

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Speaker 1: sounding E t f s they're all taken, and they're

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Speaker 1: taken by Vanguard, Schwab and I Shares, and they're in

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Speaker 1: a fee war and no one wants to battle. Then

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Speaker 1: that's like getting in between King Kong Godzilla on a

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Speaker 1: race to zero fees. So no one's touch on that

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Speaker 1: side of the E t F that have launched this year.

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Speaker 1: The Spider Gender Diversity e t F has gathered the

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Speaker 1: most assets, with two hundred sixty five million dollars one.

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Speaker 1: That's outperforming the pure funds video game tech ETF. It's

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Speaker 1: gained more than the broader technology select sector Spider Funds

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Speaker 1: since its launched. That's your Bloomberg ETF report. I'm Katherine Cowdery.

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Speaker 1: You're listening to Taking Stock with Kathleen Hayes and pimp

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Speaker 1: Box on Bloomberg Radio. Google Alphabet, the parent company of Google,

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Speaker 1: just announcing that the Chrome operating system will open up

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Speaker 1: to Android app developers this June. Google, of course hoping

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Speaker 1: that within a couple of months apps will move to

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Speaker 1: a stable beta release and then finally work on all

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Speaker 1: Chrome books this fall. All right, you think that's not relevant, Well,

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Speaker 1: let's find out more from Lou Pianta Dosi. He is

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Speaker 1: vice president and director of Growth Equity at Eton Vance.

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Speaker 1: They have about three hundred billion dollars under management. He

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Speaker 1: joins us from Boston. Right now, Lou, thanks very much

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Speaker 1: for being with us. Thanks for having me him. All right,

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Speaker 1: so tell me about Google Alphabet. I mentioned this idea

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Speaker 1: of the convergence between Android and Chrome. Is that important?

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Speaker 1: For the future of the Google ecosystem. Well, I I

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Speaker 1: think so. I mean, when you look at the segments

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Speaker 1: that Google competes in, you know, these are these are

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Speaker 1: huge markets, huge opportunities. Uh. And Google has displayed tremendous

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Speaker 1: leadership in all those areas. Uh. You know, their business

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Speaker 1: is growing quite rapidly and uh you know, I think

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Speaker 1: that they've got one of the best management teams in

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Speaker 1: the business as well. Well. In fact, you are among

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Speaker 1: those who say that they are the well you said

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Speaker 1: it last year, people that Morgan Stanley's Ruth poor atte

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Speaker 1: you know, she came over as the news CFO, etcetera

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Speaker 1: while ago. Is is she one of the people you're

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Speaker 1: referring to that it is this higher bearing fruit when

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Speaker 1: you see things like this latest deal. Yeah, no, I

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Speaker 1: think that's right. I think I think in in root

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Speaker 1: Ports case, uh that uh, you know, they needed some

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Speaker 1: some fiscal discipline, so to speak, and she has certainly

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Speaker 1: brought that to the table. Um and uh, you know,

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Speaker 1: to be more disciplined in the way they spend uh,

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Speaker 1: in how they allocate capital is a big part of

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Speaker 1: the story going forward. You know, there's lots of great

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Speaker 1: projects that they're working on But you can't, you know,

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Speaker 1: you can't throw money away, shareholder money away, willy nilly.

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Speaker 1: It's got to have a purpose and it's got to

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Speaker 1: have a reason. And she's certainly bringing that kind of

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Speaker 1: discipline to the process. Lou brings some of your discipline

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Speaker 1: to the process of managing the Eaton Vance Growth Fund.

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Speaker 1: The symbol there is e a l c X. And

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Speaker 1: I note, for example, that you have a very large

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Speaker 1: holding in Facebook. Yes, we do, that's right. I think.

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Speaker 1: I think one of the things that maybe differentiate us

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Speaker 1: from the crowd, uh is our focus on long term investing. Uh.

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Speaker 1: You know, it's seems like people get kind of caught

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Speaker 1: up in the day to day noise of the markets,

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Speaker 1: and you know, we've got kind of a trader's mentality

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Speaker 1: in the marketplace where your average holding period uh you

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Speaker 1: know declines uh to to sometimes minutes rather than years. Um.

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Speaker 1: But I think our strategy where we tend to add

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Speaker 1: value is to find these big picture, secular trends uh

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Speaker 1: that can act as a tailwind to growth, uh, you know,

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Speaker 1: for the companies that participate in these these trends. So

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Speaker 1: again you mentioned Google, you mentioned Facebook, and these are

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Speaker 1: you know, the shift in the global advertising market from

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Speaker 1: traditional media to digital is one of the biggest secular

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Speaker 1: trends out there right now. And those are the two

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Speaker 1: companies that are the biggest beneficiaries of of that trend.

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Speaker 1: Blue UH. Apple is a prominent player in your Focus

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Speaker 1: Growth Opportunities Fund and your broader growth fund. Now a

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Speaker 1: lot of people are questioning growth at Apple, you know, Uh,

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Speaker 1: Tim Cook, the CEO, just made that billion dollar investment indeed,

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Speaker 1: which is the equivalent of Uber in China. But people

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Speaker 1: consider the iPhone to be more and more a great phone,

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Speaker 1: but just not the got to replace it every time

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Speaker 1: they come out with a new one kind of phone

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Speaker 1: that it used to be. And their questioning growth at Apple.

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Speaker 1: You still are very positive there, uh. You know, we

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Speaker 1: look at the company's leadership position, the strong cash generation,

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Speaker 1: and the significant UH balance sheets that they have, And

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Speaker 1: while we agree that the growth in the near term

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Speaker 1: appears limited within the smartphone market, UH, they certainly have

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Speaker 1: a lot of flexibility going forward as to how to

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Speaker 1: drive the next leg of growth going forward. And and

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Speaker 1: while at the same time, your valuation UH is extremely attractive,

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Speaker 1: won't if you could speak a little bit about newal

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Speaker 1: brands based in Atlanta, and they all have a variety

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Speaker 1: of brands that many people may not be familiar with.

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Speaker 1: For example, they're a leader in writing instruments. Yeah, this

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Speaker 1: is an interesting story and that people look at their uh,

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Speaker 1: the stable of brands and just see a bunch of

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Speaker 1: boring categories. And writing instruments is certainly is certainly you know,

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Speaker 1: one that would appear to be a boring category. But

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Speaker 1: through good management and in marketing, they've been able to

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Speaker 1: grow that category in excess of you know, five six

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Speaker 1: seven percent, uh, you know, on an annual basis, which

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Speaker 1: is pretty pretty impressive, uh, given that it's it is

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Speaker 1: what seemingly a difficult category. They've done that with a

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Speaker 1: lot of their other brands as well, and they've recently

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Speaker 1: made an acquisition of Jardin Company. They just closed on

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Speaker 1: that acquisition last month. Uh. And there's quite a bit

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Speaker 1: of synergies, not just from the cost side, from the

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Speaker 1: revenue side as well, uh, in merging those two businesses together.

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Speaker 1: So that's the name we like quite a bit as well.

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Speaker 1: Amazon also your high A lot of people like Amazon.

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Speaker 1: Of course, we were talking to an analyst who we

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Speaker 1: were actually talking about Walmart right, And I guess that's

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Speaker 1: what I want to juxtapose for you. You You like Amazon, Um,

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Speaker 1: this analyst, this other analyst, Scott Muschkin, was saying how

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Speaker 1: he thinks they're on the way to becoming a horizontal monopoly.

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Speaker 1: Does that mean you say forget the old retailer's the

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Speaker 1: old brick and mortar, you gotta go with the new. Well,

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Speaker 1: again we get back to secular trends, and Amazon's a

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Speaker 1: name we've owned for almost four years now, uh, and

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Speaker 1: I have done quite well with it. But again, uh

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Speaker 1: online Uh, spending online as a percent of total retail

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Speaker 1: is still less than ten percent, but it's growing at

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Speaker 1: five times the rate of the total retail pie and

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Speaker 1: Amazon share within that continues to grow. So again we think,

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Speaker 1: you know, the brick and mortar retailers, particularly in general merchandise,

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Speaker 1: are going to be challenged. It doesn't mean there could

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Speaker 1: be there can't be good trading opportunities within those areas.

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Speaker 1: But I think from a long term perspective, Um, you know,

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Speaker 1: it's going to be difficult for them to grow, whereas

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Speaker 1: Amazon you can see that growth path continuing well into

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Speaker 1: the future. You know, Lou, I just want to stick

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Speaker 1: with brands for just a second, because I note this

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Speaker 1: is almost like a theme for a lot of your

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Speaker 1: investing ideas of Lassic Pickles, Bird's Eye, as well as Wishbone,

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Speaker 1: Log Cabins, Smart Balance, Snyder Pretzels. Tell us a little

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Speaker 1: bit about the brands that come unto the Pinnacle Foods umbrella. Yeah,

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Speaker 1: you know what, one of the themes that we like

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Speaker 1: to capitalize on is uh is undiscovered or undervalued growth opportunities.

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Speaker 1: And you know, like I said, the perception of those brands,

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Speaker 1: similar to Newell, is that there's not a lot of

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Speaker 1: growth there, but with the right management team, uh, they

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Speaker 1: can extract quite a bit of growth or better growth

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Speaker 1: than most people expect. So again that's the play there

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Speaker 1: with with with that one and that uh you know,

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Speaker 1: these are these are well known brands, but to some

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Speaker 1: extent maybe undermanaged. In with the right management, you can

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Speaker 1: extract a lot more value out of them. And they've

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Speaker 1: also got quite a few uh, healthy living type brands

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Speaker 1: that can can move the needle going forward, and that's

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Speaker 1: a big picture secular trend as well as people want

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Speaker 1: to live and eat healthier going forward. All right, thank

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Speaker 1: you so much for joining us. Lupiantados is vice president

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Speaker 1: and director of Growth Equity at Eaton Vans Up in Boston.

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Speaker 1: So we're heading for the clothes. Been a big day

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Speaker 1: for Walmart, for urban outfitters, and this is a time

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Speaker 1: when we've seen so many retailers under pressure. We'll be

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Speaker 1: looking at all the movers and shakers with our own

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Speaker 1: Dave Wilson are Stock Senator, will be back. We'll look

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Speaker 1: at volatility in our vixed report as well. I'm Kathleen

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Speaker 1: Hayes along with my co host Pim Fox. We're taking

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Speaker 1: stock on Bloomberg Radio. H