WEBVTT - Wall Street's Epic Bonuses Are Back 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovik. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 clus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business weekn iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.480 --> 0:00:28.360 Eastern Time on Bloomberg Radio or watch us on YouTube 0:00:28.400 --> 0:00:32.600 search Bloomberg Clovel News. We are seeing the world reopening 0:00:32.840 --> 0:00:36.000 again um post a Macron. But let's not forget that 0:00:36.040 --> 0:00:38.240 the full impact of code on our well being, Tim 0:00:38.240 --> 0:00:40.040 will be felt for years to come. And I'm talking 0:00:40.080 --> 0:00:42.720 about our health and also our mental well being. Yeah, 0:00:42.720 --> 0:00:46.040 it's certainly taken. I think become an increase in sharper 0:00:46.080 --> 0:00:49.239 focus over the last couple of years during the pandemic. 0:00:49.280 --> 0:00:52.040 Let's talk about it with Angelina May, licensed mental health 0:00:52.080 --> 0:00:55.480 counselor also the executive director of a MFM Healthcare. She 0:00:55.560 --> 0:00:57.920 joins us on the phone from Washington State Angelina, how 0:00:57.960 --> 0:01:01.680 are you hi, I'm greats wonderful to meet you, Carol 0:01:01.720 --> 0:01:03.640 and Tim. Thanks for having me on the show. Yeah, 0:01:03.680 --> 0:01:05.679 thanks so much for joining us, Angelina. And I'm wondering, 0:01:06.040 --> 0:01:08.199 what can you tell us about the way that mental 0:01:08.240 --> 0:01:11.520 health issues have increased during the pandemic. What's the data 0:01:11.600 --> 0:01:15.880 tell us. Well, it's telling us that things are of 0:01:16.120 --> 0:01:18.200 urgent needs right now and we really need to have 0:01:18.319 --> 0:01:22.800 significant interventions so we can really meet the needs of Americans. Um, 0:01:22.880 --> 0:01:26.920 we've had a significant um increase in depression of anxiety 0:01:26.959 --> 0:01:31.640 among adolescents, adults, and even UM our elderly population. Can 0:01:31.640 --> 0:01:35.200 we talk about adolescents in particulars having a conversation UM 0:01:35.319 --> 0:01:39.560 with someone last night talking about their toddler and that 0:01:39.640 --> 0:01:41.600 they were so glad to actually, I think it one 0:01:41.680 --> 0:01:44.839 or two year old be able to get them into 0:01:44.840 --> 0:01:48.120 a school because they needed socialization. It was good for everyone. 0:01:48.760 --> 0:01:52.600 What is potentially the lasting impact of our younger generation? 0:01:53.360 --> 0:01:57.040 Our kids are really young kids if they're not socialized 0:01:57.080 --> 0:02:01.440 properly at this age. Yeah. Absolutely, And this topic, like 0:02:01.480 --> 0:02:03.800 you brought up, you were just having a conversation last night. 0:02:03.800 --> 0:02:06.000 It's on the minds of a lot of Americans. Right now, 0:02:06.360 --> 0:02:08.280 and we've seen I think we just to take a 0:02:08.320 --> 0:02:11.000 step back and recognize we've gone through a collective trauma 0:02:11.080 --> 0:02:13.600 as society and the impact has is going to be 0:02:13.639 --> 0:02:18.560 seen for years. So particularly for young children, UM, they've 0:02:18.600 --> 0:02:20.920 been hit harder by this trauma. Thinking that you know, 0:02:21.000 --> 0:02:24.280 as adults, we've had decades of kind of security and 0:02:24.320 --> 0:02:29.519 normalcy that we can put this into perspective, But for adolescents, children, UM, 0:02:29.639 --> 0:02:32.600 this really has essentially impacted their life. And then when 0:02:32.639 --> 0:02:35.680 we look at like you mentioned, the kind of social 0:02:35.680 --> 0:02:40.440 skills and developmental stages of not having that social interaction 0:02:41.040 --> 0:02:45.799 or having different platforms, you know, socializing through UM virtual platforms, 0:02:45.960 --> 0:02:49.880 it's been very challenging. And I think that you know, 0:02:50.040 --> 0:02:53.000 kind of the core of UM, of one of our 0:02:53.080 --> 0:02:55.800 human needs is that connectiveness with others, and that leads 0:02:55.840 --> 0:02:58.600 to like security and belonging and and so that's why 0:02:58.600 --> 0:03:02.280 we're seeing a lot of the increases around UM depression, anxiety, 0:03:02.360 --> 0:03:05.079 even with younger children. Angelina, I want to talk a 0:03:05.160 --> 0:03:07.200 little bit about the role of social media. Here we 0:03:07.360 --> 0:03:10.679 are today Meta Platforms, the company formerly known as Facebook. 0:03:10.720 --> 0:03:13.880 It owns Instagram and Facebook of course, UM. Where does 0:03:13.919 --> 0:03:19.120 social media fit into mental health. Well, there's that you know, 0:03:19.200 --> 0:03:23.200 when used um in a positive way, those social media 0:03:23.240 --> 0:03:26.600 platforms can be extremely helpful when we've had to transition 0:03:26.639 --> 0:03:31.320 our lives to you know, virtual platforms for connecting with others. 0:03:31.360 --> 0:03:35.200 There's great um support groups and finding others that we 0:03:35.240 --> 0:03:37.440 can connect with, whether it's our hobbies and we think 0:03:37.440 --> 0:03:41.080 about a lot of our school activities have been discontinued 0:03:41.200 --> 0:03:43.320 or the book clubs we belong to and things like that. 0:03:43.360 --> 0:03:46.160 So we're using social media in those positive ways can 0:03:46.160 --> 0:03:49.520 help us feel connected to others that have shared interests. UM. 0:03:49.560 --> 0:03:51.480 So that's a really positive thing. And then but also 0:03:51.560 --> 0:03:55.600 recognizing that when we have our soul um kind of 0:03:55.640 --> 0:04:00.800 interactions through our virtual platforms, then we um, we we 0:04:00.920 --> 0:04:03.520 miss on some of those needs of you know, physical 0:04:03.560 --> 0:04:07.800 touch and physical interaction UM and just being present um 0:04:07.840 --> 0:04:10.240 with others. And sometimes we're on social media. UM. I 0:04:10.280 --> 0:04:12.960 think we're all guilty of this is as being um 0:04:13.040 --> 0:04:16.360 multitasking kind a bit and UM so being really fully 0:04:16.400 --> 0:04:19.160 present and being intentional about that can really improve our 0:04:19.440 --> 0:04:22.360 you know, feelings of connecting with others. I can't tell 0:04:22.360 --> 0:04:25.200 you how many times I've heard the word intentional. Uh recently, 0:04:25.400 --> 0:04:29.240 and it's it's a really good point because UM we 0:04:29.279 --> 0:04:32.080 are constantly kind of lauding people for being able to 0:04:32.160 --> 0:04:34.280 do a million things at once, and I think we 0:04:34.440 --> 0:04:36.360 just missed the mark in such a big way. Hey, 0:04:36.480 --> 0:04:38.520 I am curious, though, what kind of activity or demand 0:04:38.560 --> 0:04:41.839 have you seen for your services since the pandemic began, 0:04:41.960 --> 0:04:46.840 because you know, you guys specifically, you're a private behavioral 0:04:46.839 --> 0:04:49.840 health treatment center. So I'm just curious what uptick and 0:04:49.880 --> 0:04:53.719 demand have you seen and what types of cases. Yeah, 0:04:53.800 --> 0:04:56.040 that's so that's a great question. So um M s 0:04:56.120 --> 0:05:01.080 M Healthcare UM really our program and our ganization is 0:05:01.560 --> 0:05:04.920 geared around meeting the needs of our our community. And 0:05:05.000 --> 0:05:07.240 so you know, even when we started twelve years ago 0:05:07.279 --> 0:05:10.159 that we saw a need for residential of people that 0:05:10.240 --> 0:05:13.080 have mental health and substance US and so we strive 0:05:13.160 --> 0:05:15.119 to meet that need. And one thing we've done since 0:05:15.160 --> 0:05:17.360 the pandemic is, as we were talking about the virtual 0:05:17.400 --> 0:05:21.240 platforms and really seeing the need for continued access to 0:05:21.520 --> 0:05:25.680 mental health services UM is we launched our Mission Connection UM, 0:05:25.720 --> 0:05:30.279 which is a branch that offers UM Virtual Intensive Outpatient 0:05:30.320 --> 0:05:33.960 and PHP, which is UM they treatment. It. It consists 0:05:34.040 --> 0:05:37.960 of therapeutic groups during the day, individual therapy, psychiatric all 0:05:38.040 --> 0:05:41.560 that can be done virtually UM. So that's an area 0:05:41.640 --> 0:05:44.200 that we have recognized you don't have a need for it. 0:05:44.240 --> 0:05:47.840 And then you know, broader from that, we see with 0:05:48.040 --> 0:05:50.840 the UM there's been a great since the pandemic. It's 0:05:50.839 --> 0:05:54.680 just a greater UM burden on our hospital systems and 0:05:54.760 --> 0:05:57.760 on our first responders, and so a lot of times 0:05:57.800 --> 0:05:59.840 we see people going through you know, they're in a 0:06:00.200 --> 0:06:03.960 health crisis, they interact with the fire department, maybe end 0:06:04.000 --> 0:06:07.039 up in a yer, go to a crisis program for 0:06:07.200 --> 0:06:09.400 just three to five days, and then they're discharged back 0:06:09.440 --> 0:06:12.240 to our patients. So our residential programs, yeah, that's you know, 0:06:12.279 --> 0:06:16.440 typically forty five days. They can really um fill that 0:06:16.480 --> 0:06:19.760 connectivity with others, really work on their underlying mental health 0:06:19.839 --> 0:06:25.120 and depression anxiety. It's a it's no, no, that's okay, 0:06:25.120 --> 0:06:26.680 we're running in a time, But I do. I think 0:06:26.720 --> 0:06:28.360 that's such an interesting point. It's like how we think 0:06:28.400 --> 0:06:30.760 about going to physical therapy when something goes wrong. We 0:06:30.800 --> 0:06:32.880 may not need it for a long time, but we 0:06:32.960 --> 0:06:36.240 need some help or acupuncture, and we need to think 0:06:36.240 --> 0:06:39.240 about mental wellness in the same way. Angelina may thank 0:06:39.240 --> 0:06:42.400 you so much, executive director for a MFM Healthcare on 0:06:42.440 --> 0:06:46.120 the phone from Washington State. You're listening to Bloomberg Business 0:06:46.200 --> 0:06:50.039 Week with Carol Masser and Bloomberg Quick Takes Tim Stenovic 0:06:50.520 --> 0:06:53.359 on Bloomberg Radio. It is our most read story on 0:06:53.400 --> 0:06:56.120 the Bloomberg. It's also today's Bloomberg Big Take. It's a reminder. 0:06:56.320 --> 0:06:58.839 I guess you could save another era as big bonuses 0:06:58.880 --> 0:07:01.080 on Wall Street. Tim, they are back the stories by 0:07:01.080 --> 0:07:04.440 Shrinadarajin and Hannah Hannah levitt shere joins us. Now he's 0:07:04.480 --> 0:07:06.880 finance reporter for Bloomberg News. He's what this is in 0:07:06.920 --> 0:07:09.560 the Bloomberg inactor broker studio. Okay, So let's let's talk 0:07:09.640 --> 0:07:11.680 numbers here because we're we're starting to learn and we 0:07:11.720 --> 0:07:14.920 did learn last week, uh, fifteen million dollars, twenty five 0:07:15.000 --> 0:07:18.480 million dollars, thirty five million dollars, just how much executives 0:07:18.480 --> 0:07:22.920 were paid in who got paid what, and how is 0:07:22.960 --> 0:07:27.080 that different from recent years? Look anyway you slice and 0:07:27.120 --> 0:07:30.000 dice it when you look across the street, when you 0:07:30.080 --> 0:07:33.280 look at compensation levels from the most junior ranks to 0:07:33.320 --> 0:07:36.440 the most senior ranks, this has been the biggest windfall 0:07:36.480 --> 0:07:38.640 in the generation, you really have to go back to 0:07:38.920 --> 0:07:41.520 two thousand and nine, and in some ways it does 0:07:41.800 --> 0:07:43.760 feel like this is going back to the good old 0:07:43.840 --> 0:07:47.680 days for rainmakers on Wall Street. We've gone through a 0:07:47.760 --> 0:07:51.920 stretch nearly a decade post crisis, where after inviting a 0:07:51.920 --> 0:07:54.760 lot of scrutiny and anger from lawmakers, especially in the 0:07:54.760 --> 0:07:57.120 wake of the crisis, when the big banks went ahead 0:07:57.160 --> 0:08:00.000 and rewarded some of their top talent in two thousand nine, 0:08:00.040 --> 0:08:03.880 a year after the federal bailouts that forced them to 0:08:04.160 --> 0:08:07.000 put a lid on how much they were paying these people. 0:08:07.080 --> 0:08:10.000 And we also went through a period of what felt 0:08:10.040 --> 0:08:12.360 like a little bit of a secular decline. Definitely in 0:08:12.440 --> 0:08:15.080 trading all that change with the pandemic. There are some 0:08:15.160 --> 0:08:19.280 echoes to what happened in the crisis, government intervention, market stabilized, 0:08:19.360 --> 0:08:23.200 unleashed sort of this wild trading activity do you making 0:08:23.240 --> 0:08:27.320 bonanza in twenty they showed some level of restraint. They 0:08:27.320 --> 0:08:30.040 were printing record revenues and profits, but they were willing 0:08:30.160 --> 0:08:32.559 to gap how much they were willing to pay people 0:08:32.679 --> 0:08:35.360 because a they didn't know how long this would last, 0:08:35.880 --> 0:08:38.720 and be the optics aren't really great to pay people 0:08:38.840 --> 0:08:41.360 top dollar in the middle of a pandemic. Moving to 0:08:42.640 --> 0:08:47.599 boom rumbled into a second straight here, but the conversation 0:08:47.760 --> 0:08:52.000 shifted to retaining talent, the war for talent, people getting 0:08:52.520 --> 0:08:55.920 fed up, tired and wanting to switch seats and frankly, 0:08:56.160 --> 0:09:01.400 much better opportunities elsewhere in the financial landscape that has 0:09:01.480 --> 0:09:04.080 forced the big bosses at the major US bank to 0:09:04.200 --> 0:09:06.040 really open up their wallets. So was this going to 0:09:06.120 --> 0:09:10.240 happen pandemic or no pandemic or was it accelebrated exacerbated 0:09:10.360 --> 0:09:13.440 because of the fight for talent as some people maybe 0:09:13.520 --> 0:09:17.199 left the workforce andone elsewhere. You really struggled to make 0:09:17.240 --> 0:09:19.520 a case for this happening without a pandemic, because without 0:09:19.559 --> 0:09:22.480 a pandemic, there was no reason in the typical growth 0:09:22.600 --> 0:09:25.640 rate we've been seeing in trading and dealmaking activities for 0:09:25.840 --> 0:09:28.400 banks to be able to print the kind of numbers 0:09:28.440 --> 0:09:32.720 that they did, whether they accepted or not. That was 0:09:33.000 --> 0:09:38.719 certainly this government intervention that started in March that a 0:09:39.000 --> 0:09:43.040 stabilized the market and then ensured that it absolutely zoomed ahead. 0:09:43.559 --> 0:09:45.959 And there is a very real argument to make that 0:09:46.120 --> 0:09:51.480 without federal support through the absolute depth of the pandemic, 0:09:51.840 --> 0:09:54.560 it wouldn't have happened. Can we talk about the coach 0:09:54.960 --> 0:09:56.680 we got? We got to talk about the coach because 0:09:56.880 --> 0:09:59.400 you and Hannah Levitt, who's the co author on that's 0:09:59.400 --> 0:10:03.720 got some incredi information about Goldman CEOs coach. What did 0:10:03.720 --> 0:10:05.360 you learn about a coaching session that they had to 0:10:05.360 --> 0:10:09.280 prepare for congressional testimony? Just just to give our listeners 0:10:09.320 --> 0:10:11.760 a sense of what we're talking about, we do point 0:10:11.760 --> 0:10:14.880 out that not so long after David Solomon rose to 0:10:14.920 --> 0:10:17.960 the top rank became CEO at Goldman Sex, he was 0:10:18.040 --> 0:10:22.560 preparing for a congressional hearing. And there is a process 0:10:22.600 --> 0:10:27.280 that's known as murder boarding, where effectively people executives at 0:10:27.320 --> 0:10:29.319 the firm will throw all sorts of questions at the 0:10:29.360 --> 0:10:31.800 top executive to try and give them a sense of 0:10:31.840 --> 0:10:34.880 what they can expect from lawmakers at the Real Deal. 0:10:35.240 --> 0:10:38.320 One of the questions posted David Solomon was would you 0:10:38.400 --> 0:10:41.400 be open to paying higher taxes if it went towards 0:10:41.760 --> 0:10:45.000 spending on social services? At first, he fume he thought 0:10:45.520 --> 0:10:48.360 it wasn't the smartest question, but then the court said, 0:10:48.960 --> 0:10:51.200 you know, Jamie Diamond has been awfully public about this 0:10:51.240 --> 0:10:55.080 idea that he would willingly do it to which we 0:10:55.240 --> 0:10:59.120 understand Solomon said, of course Jamie can say that because 0:10:59.160 --> 0:11:02.360 he's made all his money. Why that is interesting is 0:11:02.400 --> 0:11:06.240 that it offers a little window into the mindset. David 0:11:06.280 --> 0:11:10.480 Solomon is among the class of newly climbing executives. He's 0:11:10.640 --> 0:11:14.760 preached the top spot at Goldman Sachs in a very 0:11:14.840 --> 0:11:18.160 different era than when Jamie Diamond ascended to the top. 0:11:18.440 --> 0:11:22.000 And we talked about this new generation, this generation that's 0:11:22.040 --> 0:11:25.000 at the top right now. They have missed out on 0:11:25.040 --> 0:11:29.880 the richest reaped by executives and leaders who came much 0:11:29.960 --> 0:11:32.560 before them, and that shows in the numbers. Jamie Diamond 0:11:32.640 --> 0:11:35.200 is a billionaire two times over, and David Solomon is 0:11:35.240 --> 0:11:38.760 not close to that. No one is saying David Solomon 0:11:38.880 --> 0:11:42.840 is not rich quote unquote, but there still is a difference. 0:11:42.920 --> 0:11:45.240 It's the sound of the times. Go to Bloomberg dot 0:11:45.280 --> 0:11:46.600 com and read the story. We'll put it out on 0:11:46.600 --> 0:11:49.120 Twitter Street down Rage and thank you so much, Financial 0:11:49.160 --> 0:11:52.760 proter rat Bloomberg News. This is Bloomberg Business Week with 0:11:52.840 --> 0:11:57.640 Carol Master and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. 0:11:58.000 --> 0:11:59.760 All right, well, in the New yatsh of Bloomberg Business 0:11:59.760 --> 0:12:02.800 read out in its entirety tomorrow online, on the Bloomberg 0:12:02.840 --> 0:12:05.000 and on NEWSSTANDZA story about the investors who have been 0:12:05.000 --> 0:12:07.719 backing Kathy Wood in our arcs array of E t F. 0:12:08.440 --> 0:12:10.640 They're sticking with our even as our flagship fund has 0:12:10.640 --> 0:12:13.000 plummeted big time. Tim They are what the headline refers 0:12:13.000 --> 0:12:16.480 to as true believers. Joe Weber is editor at Bloomberg Business. 0:12:16.679 --> 0:12:18.920 He joins us on the access line from Brooklyn. The 0:12:18.920 --> 0:12:22.000 story written by Sam Potter, among others. Sam is Senior 0:12:22.120 --> 0:12:24.440 editor and E t F s R at Bloomberg News. 0:12:24.520 --> 0:12:26.520 Check out this story. It'll be featuring the upcoming issue 0:12:26.559 --> 0:12:28.400 of Business Week magazine. Also, you can read it now 0:12:28.400 --> 0:12:31.400 at Bloomberg and on the Bloomberg terminal. I tweeted out 0:12:31.400 --> 0:12:35.480 earlier today, Joel, what's happened with Kathy Wood's fund? We 0:12:35.480 --> 0:12:37.760 know we've covered the performance close, their audience is familiar 0:12:37.840 --> 0:12:41.319 with it, but something really interesting has happened. Um investors 0:12:41.320 --> 0:12:45.880 are sticking with her, That's right. So it's um an 0:12:45.920 --> 0:12:49.760 interesting phenomenon when from peak, you know, I think it's 0:12:49.800 --> 0:12:55.520 down something like while S and P is up. Uh, 0:12:55.800 --> 0:12:59.800 you would think most fund managers who endured something like that, 0:13:00.320 --> 0:13:05.000 something like a sixty percentage points spread would see upflows. 0:13:05.200 --> 0:13:08.520 And yet that's not entirely the case with Wood. Um, 0:13:08.520 --> 0:13:12.320 it's proving to be really sticky assets. And why why 0:13:12.440 --> 0:13:16.400 is that? Why do we think that's to be true? Sam? Yeah, 0:13:16.440 --> 0:13:20.160 I'm because afternoon everyone. I mean, the fact is that 0:13:20.280 --> 0:13:23.600 Chassie Wood has has really sold a story and narrative 0:13:23.640 --> 0:13:28.880 of the future that investors appear her investors certainly appear 0:13:29.200 --> 0:13:34.600 to really be on board with and to believe in. UM. 0:13:34.640 --> 0:13:37.200 I mean to give some figures to what we're talking 0:13:37.240 --> 0:13:41.160 about here. UM, the main fund, the ARC Innovation Fund, 0:13:41.240 --> 0:13:44.480 is down about so far this year. It's actually got 0:13:44.559 --> 0:13:48.600 positive flows, so it's got net inflows for this year 0:13:48.600 --> 0:13:55.400 while it's poor. Um. The reasons are, you know, our 0:13:55.520 --> 0:13:58.559 BI guys like to do a lot of analysis on this, 0:13:58.760 --> 0:14:02.679 and they talk about how most invested these days are 0:14:02.679 --> 0:14:08.120 heavily invested into big index funds, big boring market following funds, 0:14:08.280 --> 0:14:10.120 and then what they do is with a little slice 0:14:10.160 --> 0:14:12.920 of their investment, they take a risk, they take a gain, 0:14:13.040 --> 0:14:15.439 or they want to put it on meme stocks or 0:14:15.520 --> 0:14:19.600 on crypto, and ARC seems to fall into this this 0:14:19.680 --> 0:14:22.040 kind of bracket. They call it the hot source. So 0:14:22.160 --> 0:14:24.080 people have prepared to put their money in and leave 0:14:24.120 --> 0:14:27.120 it in, and even with these heavy losses, they're still 0:14:27.200 --> 0:14:29.400 kind of strugging and saying, you know what, I think, 0:14:29.480 --> 0:14:31.600 I think this might come good and even if it doesn't, 0:14:31.640 --> 0:14:34.160 come along for the ride. Well. And what's interesting too, 0:14:34.240 --> 0:14:36.360 as you point out Tam and your story, is that 0:14:36.480 --> 0:14:38.840 a lot of these people who have gotten in, a 0:14:38.880 --> 0:14:40.920 lot of them right, have gotten in at the peak. 0:14:41.080 --> 0:14:43.440 So I mean, if you were there from the get 0:14:43.440 --> 0:14:46.640 go when she started out inception of all at all 0:14:46.880 --> 0:14:50.000 of this, you made a lot of money. But if 0:14:50.080 --> 0:14:54.560 you got in at the highs, you're hurting. Yeah, it's 0:14:54.560 --> 0:14:58.120 a It's a classic story of sentiment, isn't it. The 0:14:58.160 --> 0:15:01.360 bulk of the money came in just as as the 0:15:01.480 --> 0:15:05.520 arc story really peaked. We're talking early last year. Um, 0:15:05.600 --> 0:15:10.560 So when you actually calculate the volume of cash coming 0:15:10.640 --> 0:15:13.840 in by the price that was paid at the time, 0:15:14.680 --> 0:15:17.400 I mean, it's an estimate, but but you're looking at 0:15:17.560 --> 0:15:21.600 being underwater by about maybe twenty five percent sometimes in 0:15:21.640 --> 0:15:26.239 the main fund for example. So yeah, people, the majority 0:15:26.240 --> 0:15:31.640 of cast that's come in is arguably now reduced, but again. 0:15:32.240 --> 0:15:35.720 You know, we've seen star managers before in history tells 0:15:35.800 --> 0:15:39.120 us a tale, and it all unwinds when investors have 0:15:39.240 --> 0:15:41.880 had enough and walked away. At one point, the arc 0:15:42.040 --> 0:15:46.080 innovation thumb was down about six from its peak, and 0:15:46.160 --> 0:15:48.880 yet we again we have inflows this year. You know, 0:15:48.920 --> 0:15:52.480 it's an incredible story of faith. Blows are high. Isn't 0:15:52.480 --> 0:15:56.000 that what we're supposed to do? So So another thing 0:15:56.040 --> 0:15:57.640 that kind of stands out to me, or that I'm 0:15:57.680 --> 0:16:01.680 curious about CM is you know, you mentioned the Innovation 0:16:01.680 --> 0:16:05.160 Fund their flagship a r k K, but she has 0:16:05.520 --> 0:16:08.240 other E T F that all have, you know, their 0:16:08.280 --> 0:16:10.560 own spin on things. How sticky are the assets and 0:16:10.600 --> 0:16:14.840 those funds compared to the flagship? Point it is true 0:16:14.880 --> 0:16:19.240 that they are not they're not proving as durable. Um 0:16:19.240 --> 0:16:21.040 we see, I mean it's a mixed picture across the 0:16:21.080 --> 0:16:26.200 funds that we do see that proportional to the assets, 0:16:26.240 --> 0:16:29.240 the outflows have been higher and the performance of a 0:16:29.320 --> 0:16:34.600 number of those times is similar to our innovation So um, 0:16:34.600 --> 0:16:39.440 it isn't you know, it isn't the universal thing. And 0:16:39.480 --> 0:16:41.360 it's going to be really interesting to see how some 0:16:41.400 --> 0:16:44.280 of those domes, especially the ones she launched quite late 0:16:44.400 --> 0:16:47.680 on the Space Fund, the Transparency funds. It will be 0:16:47.680 --> 0:16:52.720 interesting to see how those they're Um, I'm reasonably confident 0:16:52.800 --> 0:16:56.560 this our innovation fund these around for the long haul, 0:16:57.120 --> 0:17:00.880 but whether and how well the others survived remains to 0:17:00.920 --> 0:17:05.240 be seen. Hey, um, just real quick, Sam, I'm I'm 0:17:05.240 --> 0:17:10.000 wondering specifically about the idea of her social media following. 0:17:10.040 --> 0:17:12.879 And it's interesting in here. I didn't know that she 0:17:13.000 --> 0:17:17.840 had more followers than the biggest et f issuers can combined. 0:17:17.960 --> 0:17:21.720 Right now, Yeah, that's right. She's got more than a 0:17:21.760 --> 0:17:25.119 million followers herself and then her analysts, and it's not 0:17:25.200 --> 0:17:27.680 a very big team ARC. I think the whole firm 0:17:27.760 --> 0:17:32.480 is about forty five people. Um, the they've collectively got 0:17:32.480 --> 0:17:35.719 another half a million, so taken together, is more than 0:17:35.840 --> 0:17:42.400 Stage Street, Black Rock and Vanguard official Twitter handles combined. 0:17:42.960 --> 0:17:47.280 And that sort of speaks to her breadth and her popularity. 0:17:47.320 --> 0:17:51.879 And one of one of the ARC portfolio managers is 0:17:51.920 --> 0:17:53.720 in the story and saying, you know, one of the 0:17:53.800 --> 0:17:56.439 things that people like about us and why we have 0:17:56.600 --> 0:17:59.560 these fans is because we're very transparent, you know, and 0:17:59.600 --> 0:18:02.200 they do, to their credit, they do, you know, they're 0:18:02.800 --> 0:18:06.120 cat Wood is often online. She tweets her research. They're thinking. 0:18:06.880 --> 0:18:10.240 They are very engaged and as we've had a sort 0:18:10.280 --> 0:18:13.120 of retail investor boom, I think that's really played into 0:18:13.160 --> 0:18:15.480 their hands. Well, it's fascinating you really get into the 0:18:15.560 --> 0:18:17.720 details that she's drawn in money. You know how she's 0:18:17.720 --> 0:18:19.760 had to maybe lay out to some different bets and 0:18:20.000 --> 0:18:22.800 those names that maybe don't trade as actively. Um, we 0:18:22.880 --> 0:18:25.120 gotta run, Sam, Thank you so much. Sam Potter, Senior 0:18:25.200 --> 0:18:27.520 Editor and e T. F s are Bloomberg News from London. 0:18:27.560 --> 0:18:29.639 Joe Webber, Editor Bloomber business Week. This story in the 0:18:29.720 --> 0:18:32.920 upcoming new issue of Business Week magazine. I also tweeted out, 0:18:32.920 --> 0:18:35.040 so you can see that on my Twitter feed as well. 0:18:35.080 --> 0:18:36.719 Wait a lot today, I'm tweeting a lot. I love 0:18:36.760 --> 0:18:39.800 the stories. I'm starting to tweet again. You're listening to 0:18:39.920 --> 0:18:43.879 Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes 0:18:43.960 --> 0:18:47.960 Tim Stinovic on Bloomberg Radio. So we've been talking about 0:18:48.000 --> 0:18:49.680 what's the best credit card to get with our Jenny 0:18:49.720 --> 0:18:53.560 Serene because she tracks this. Yeah, she covers fintech, she 0:18:53.600 --> 0:18:55.919 covers credit cards, and we have her in the studio 0:18:56.000 --> 0:18:57.320 for the first time in a while, So we gotta 0:18:57.320 --> 0:18:58.920 do Jenny, what is the credit card that we should 0:18:58.920 --> 0:19:00.520 have right now? How do we get the point? She 0:19:00.520 --> 0:19:03.640 should start a blog. She really should. She's the points guy. 0:19:03.760 --> 0:19:06.080 She's our own version of the points guy. Uh. Meantime, 0:19:06.119 --> 0:19:07.919 we do want to talk about PayPal because man, it's 0:19:07.920 --> 0:19:11.760 getting whacked today. Right now. It's down about uh certainly 0:19:11.880 --> 0:19:14.879 I think the top decliner in the Nasdaq one hundred. Uh. 0:19:14.960 --> 0:19:17.399 Let's get to it because apparently the company is getting 0:19:17.400 --> 0:19:20.560 stung by bad actors. Jenny Strain is finance reporter for 0:19:20.560 --> 0:19:23.119 Bloomberg News. She's with US and the Bloomberg Interactive Broker. 0:19:23.200 --> 0:19:25.840 She wrote about these bad actors um PayPal as a 0:19:25.880 --> 0:19:29.280 result shutting four point five million accounts, among other reasons, 0:19:29.359 --> 0:19:32.159 the company taking a hit in the trade today. What 0:19:32.440 --> 0:19:35.760 are bad actors? So? Last year, for the first time, 0:19:35.920 --> 0:19:38.399 really ever, PayPal started to do what we've seen a 0:19:38.440 --> 0:19:41.040 lot of other FinTechs do, which is say, um, you know, 0:19:41.040 --> 0:19:42.560 if you sign up for a new account, will give 0:19:42.600 --> 0:19:45.639 you ten dollars UM and really going hard after those 0:19:46.000 --> 0:19:48.879 new users. And basically what they got hit with was 0:19:48.960 --> 0:19:52.080 a bunch of fraudsters using bot farms um opening a 0:19:52.119 --> 0:19:55.440 bunch of accounts fraudulently and not UM you know, not 0:19:55.560 --> 0:19:58.520 intending to be legitimate customers at all. And so after 0:19:58.560 --> 0:20:01.240 this big review they go through, they decide, Okay, we're 0:20:01.240 --> 0:20:03.359 going to close those that we know our problem and 0:20:03.480 --> 0:20:06.040 they're actually gonna stop doing that type of marketing in general. 0:20:06.080 --> 0:20:08.239 So they have said, you know, we're no longer going 0:20:08.280 --> 0:20:12.080 to like shoot for just growth and new users. Were 0:20:12.119 --> 0:20:14.040 really going to try and focus on our existing users 0:20:14.080 --> 0:20:16.720 and get them to use us more. Not about quantity, 0:20:16.840 --> 0:20:19.920 but quality, that's what they're saying. But I mean, this 0:20:19.960 --> 0:20:22.320 is an important metric right for how we measure the 0:20:22.400 --> 0:20:25.760 successive PayPal and that's why this is dragging down or 0:20:25.800 --> 0:20:28.639 in part really dragging down the share price today. Yeah, 0:20:28.720 --> 0:20:32.080 so yesterday it was really interesting to hear the executives 0:20:32.119 --> 0:20:34.880 on the earnings called talk about UM. You know, we're 0:20:34.920 --> 0:20:37.240 not like a subscription business. We're not like a Netflix 0:20:37.280 --> 0:20:40.800 where every new user automatically yields fifteen dollars a month 0:20:40.880 --> 0:20:44.120 in revenue. So they really do depend on their existing 0:20:44.240 --> 0:20:46.679 users using them a lot. And we did see a 0:20:46.680 --> 0:20:48.960 little bit of that improve in the quarter. UM. I 0:20:48.960 --> 0:20:51.400 think folks are using them. It's usually around forty five 0:20:51.480 --> 0:20:54.399 to fifty times UM on average. And so that I 0:20:54.440 --> 0:20:59.040 mean that month quarter, yeah, quarter exactly UM. And so 0:20:59.200 --> 0:21:00.720 I mean, and that's going up. And so that's what 0:21:00.760 --> 0:21:02.360 they want to see. And and so they're just saying, 0:21:02.400 --> 0:21:04.840 you know, instead of putting our marketing dollars around, you know, 0:21:04.920 --> 0:21:07.880 getting to our first billion users or whatever, um, they're 0:21:07.880 --> 0:21:11.320 really focused on just making sure that the million that 0:21:11.359 --> 0:21:13.720 they have are are using them a lot. You what's crazy? 0:21:13.880 --> 0:21:16.520 In Max Chafkin's book about Peter Tile and they talk 0:21:16.560 --> 0:21:19.280 about the origins of PayPal. This was an issue when 0:21:19.280 --> 0:21:23.760 PayPal first started back in like twenty years ago, and 0:21:23.760 --> 0:21:26.560 they're still battling it out today. Yeah, what's old is 0:21:26.600 --> 0:21:28.600 new again. That's very that's very very true. I mean 0:21:28.880 --> 0:21:31.159 it's honestly, it was kind of a perfect storm for PayPal. 0:21:31.200 --> 0:21:33.760 They're dealing with a lot right now. Their former parent company, 0:21:33.760 --> 0:21:36.200 eBay has announced that they you know, are moving there. 0:21:36.280 --> 0:21:39.280 They're going their separate ways. So that's happening to them. 0:21:39.359 --> 0:21:42.000 In general. ACoM didn't do as well as folks thought 0:21:42.040 --> 0:21:44.800 it would during the holiday season. Um, that's obviously PayPal's 0:21:44.800 --> 0:21:46.879