let's get a check of the first word news with mark crumpton. ark: a brooklyn man wearing pipe bomb attachment velcro and zip ties set off an explosion, injuring himself and three others. new york governor andrew cuomo called the bomb low-tech and was adamant that the city remain vigilant after the port authority and several subway lines were shut down temporarily. >> all the service will reserve. ume. let's go back to work. we will not allow them to disrupt us. that's exactly what they want and that's exactly what they are not going to get. mark: officials are calling this an attempted terrorist attack. identified has been as a 27-year-old. he suffered serious burns while the other victims had minor injuries. the largest of those wildfires in southern california is moving north. hundreds have fled their homes in santa barbara county. so far, the blaze has burned more than 270 square miles and forced the evacuation of 30,000 residents. israeli prime minister benjamin that yahoo! was in brussels today to meet with foreign ministers from the european union. facing criticism since the united states officially recognized for his long as israel's capital, benjamin netanyahu presented his country at again to her of eu security. conference, the eu foreign policy chief said jerusalem must be the capital of "both israel and palestine." russian president vladimir putin made a surprise visit to syria and made a point that troops should begin withdrawing. it is the first time that president clinton has been the russiannce he sent forces there to back president assad in the civil war. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. shery: bitcoin has landed on wall street cou. cryptocurrency surged in its first session. we caught up with ed tilly on the appetite participants so far. >> at lunch, we had about 12 nonparticipants. those are registered traders. we are up to about 22. and we will not see clarity from that time, but we will see a big change. we will see that build over the days and weeks to come. shery: we are joined now with more on bitcoin. that fear shortselling at least for now. >> you can still short sell and i think you have to be a pretty brave trader to short sell an asset that's games like 90% in the past couple of weeks. in the past couple of weeks, but 1500% or more? you're talking about something like 100,000,000%. thise: bitcoin became quarter trillion dollar market cap with not just bitcoin, but all the crypto currencies. what is it now and what will it be out with all the other contracts? rob: it's about $280 billion in cryptocurrency overall, pushing 400. part of the creation of it was that they agreed on a finite amount. there will not be more than a certain amount. we're not quite there yet. the irony of the past day is that was really created as an alternative to financial institutions. these number of years later scum of the financial institutions look at these returns and they want to get him and make use of it. at the same time, just the idea of digital currency even has central banks talking about issuing it. it's a new idea. shery: the future of that depends on how easy it is for investors to approach bitcoin trading. how has it been so far? rob: demand for the futures is very strong. it should always be pointed out that you are not trading bitcoins. these are dollars settled contracts. what we need to look for in the coming days is arbitrage. we think arbitrageurs will bring the spread. shery: you are seeing the spread more than $1000 already. said he's aceo former trader himself. why are traders bidding off contracts today? it can be a supply and demand thing because supply is cap. they cannot be fundamentals. what is pushing the price up? rob:-i think. -- hype i think. beget more interesting gains and is a tremendous amount of money and mutual funds and pension funds and all these places, institutional money that they cannot by bitcoin. they have to buy a regulated product like a future. this is their first opportunity to have a piece of it. there's probably a lot of that money still on the sidelines. whate: we do have to ask you think your chances of a whale cornering the market are. rob: we had a very good story about the whales and its true. there's nothing that says they can't work together . i think one interesting aspect of it is that they are believers. this is more than a currency. it's kind of a philosophy. it will be interesting to see if they trade their commitment to an alternative financial system for quick profit. shery: it will be interesting to see what regulations come forth. thank you so much, robert, here with the latest on bitcoin. n tax cuts.ice o we will talk to the president of the committee for responsible financial budgets. this is bloomberg. ♪ shery: this is "bloomberg markets." i'm shery ahn. vonnie: i am vonnie quinn. we are halfway into the trading day here in the u.s.. abigail, how are things moving? abigail: small change for the major averages. modestly higher, you can see the tech heavy nasdaq is up the most, leading up 4/10 of 1%. there is a sense of apathy here on investors waiting on republicans to hammer out a tax bill that they can present to president trump, plus the explosion in times square not creating a sense of risk off. that iss something unlikely to affect the corporate outlook at this time. really small rooms here. where we are seeing small moves is bitcoin. let's hop into the bloomberg and talk about that spread. what we are looking at is nimbly we have bitcoin and then we have bitcoin futures surging in the first 24 hours of trading on the ceo. the basis of $1000 is where the arbitrage possibility is. us commodityg to strategist at bloomberg and he was saying that futures should drop down to the spot price. the reason that shorts are not able to do that right now as a matter of liquidity is that when bitcoin future start trading next week that there could be more liquidity and perhaps we will see a little bit more of less of a spread as the two meet each other. we will be waiting to see. the bitcoin surge that we are seeing for futures certainly helping a few bitcoin related companies. you can look at right block chain up 20%. that's pretty amazing. this is a microcap company. it's formally a biotech company and they still have their biotech businesses. there's a pretty high storage of 10%, but they do focus on buying, but now they're trying to buy crypto and block chain businesses. we also have the like of nvidia train higher. they make chips that go into cryptocurrencies. take a look at overstock.com up 22%. the online retailer does except bitcoin as a form of payment. we will be digging into that and the stock of the hour at 12:30 p.m. it's an interesting story there. ly, aly as seem like lack of volatility for bitcoin. the type of volatility we have seen for bitcoin is only in big stockmarket crashes. . what we are looking at is in white the bitcoin volatility over the last month. last week hitting 100.5%. have the, we volatility of the s&p 500 during october of 1987 or during the crash of 1987. blues october of 2008, the big financial crisis. lots of volatility for bitcoin and akin to the kind of volatility we have seen during stock market crashes. vonnie: abigail doolittle, thank you for that break u down. shery: congress passed a two-week extension of federal funding that avoids the shutdown for the short-term. bethe same time, there will rushing to finish work on tax legislation before leaving washington for the holidays. our next guest says the biggest loser in the text discussion is fiscal discipline. maya mcguiness is with us now from washington. thank you for coming on the program. we even saw a well-known deficit hawk like senator jeff flake buy into the senate bill. why do you find a problem with this? maya: the whole argument that this is not going to be bad for the near record levels of national debt that we have has been that the tax bill is going to create so much economic growth that it will end up paying for itself and create more revenues that actually bring the debt down. there have been a whole list of studies that have shown unfortunately that's not even close to the case. the gross from this bill, which reform can-- tax create economic growth, but it won't be nearly enough to offset the whole cost of the revenue lost. this means the deficit and the debt will grow up in that slows economic growth further. we are following into a trap that we do so often washington, which is let's focus on the short-term gains, which means lots of tax cuts for all of us, but we don't have to pay for them. that's really unfair to the next generation and the future, but it's bad for our economy right now. we make up a lot of fake promises to justify very short-term and not very smart policies. vonnie: what ever about the individual tax cuts, we are looking at a story today on the bloomberg that suggests that people won't even really feel them. it was a nice payday for a day or two, but many families did not see the difference. what about corporate tax rates? is there potential to generate a lot of growth? even if they are deferred, might we get growth next year because corporations can deduct everything they invest, for example? maya: i think that's an excellent point because the tax reform bill has been designed to to do one thing and yet the talking points about it have been a second thing. the discussion around it has been that this is all about middle-class tax release. that really isn't the purpose of tax reform. in many ways, i think the focus of tax reform should be how you grow the economy. many of the things included miss tax bill -- a lower corporate text rate, thinking about tax in the global environment, looking at things that will incentivize more investment -- those are indeed how you grow the economy if -- and this is the important piece -- if it does not simultaneously add to the debt because higher debt levels shrink the economy. the corporate side of the tax bill could be progrowth though not nearly as much as folks are banking on what these big crazy numbers that we are hearing. then the big question is how is that gross spread? is it across the income distribution? if it's all deficit finance, what people are getting -- they may be short-term tax cuts. it is a big mountain of debt that is added to our already record levels of debt. shery: the treasury department today just released a report saying that the tax-cut will pay for itself with 2.9% gdp growth. they not only accounted for the tax cuts but regulatory reform, infrastructure development, and welfare reform. if you have these other conditions, would you give them the benefit of the doubt that it could produce big enough gdp growth? maya: i don't think the thing we should be doing when you talk about changes to our economy is giving the benefit of growth to more borrowing. what this one page finding from the treasury does other than confuse the debate is that it just claims an answer. it says we are going to assume 2.9% growth and then back into how to get it there. that's not a study. that's not an analysis. that's not the deep kind of thinking we need around these big decisions on how to detect reform. that saying here's something i want to be true and i want to claim that it's true and i will fill in the numbers to make that claim based on something. it's really an unfortunate piece of paper that they put out today that i don't think it is helping us do what we need to do, which is look at how do you craft a tax bill and other policies, regulatory reform, infrastructure that will do the most to grow the economy? let's come up with a comprehensive economic plan that's good for the economy and the fiscal situation in this country, but let's not make up numbers w while we are doing it. we are falling into a sinkhole of sub optimal policymaking. vonnie: it looks like that's already the case. if the gop get something to the president's desk, everything you said is going to come to pass. what then would be the answer because republicans will turn to welfare reform? would you and your committee want welfare reformed an in order to pay for these tax cuts? would that be responsible? maya: the right way to fix this problem has been the same way it is for years now, which is to put together a big comprehensive that bill with all sorts of the budget on the table. the biggest things that will fix our huge fiscal challenges our tax reform that increases revenue instead of shrinking it. not what we are about to pass in all likelihood. and structural changes to our mandatory spending program like social security, medicare, and medicaid. i do not think that by taking away revenues from the government but you can turnaround and say we have to do more to fix those other programs. we are going to need to go back and look at how much revenue and how much reforms for these programs are necessary to get the fiscal situation on a sustainable path. i think the big tax cuts massively complicate the overall issue. it makes the problem worse and i fear we are going to have to look at feeling parts of that tax bill for new parts like a carbon tax or other kinds of revenues to fill in the difference. shery: thank you so much for your thoughts, maya mcguiness, committee for the responsible federal budget. vonnie: breaking news now -- apple has confirmed it is buying the music recognition app shazam. it is taking ownership of one of the first apps to demonstrate the power of the iphone. you can use shazam to recognize songs after hearing a few bars. wascrunch last week we talking about $400 million because shazam has been around for 18 years. some of the early investors were carlos slim and at one point it was seen to be a unicorn. this would be a bit of a disappointment as an exit. shery: are we that old? 18 years. it seems like yesterday. vonnie: i downloaded it when it came out first. shery: i wish they had more overseas songs. they seem to only have english ones. coming up, amazon's big-time push into apparel. how the move away from big names brands is pushing it. this is bloomberg. ♪ shery: welcome back. this is "bloomberg markets." i'm shery ahn. vonnie: i am vonnie quinn. traditional power retailers b-day -- apparel retailers beware, amazon has become the biggest apparel sales in the u.s.. the tech giants ascent has been buoyed by a surprising trends -- the erosion of brand loyalty by millennials. joining us now is lindsay wrote. this is fan fascinating. you say millennials where where and no-name brand board amazon brand? lindsey: no one knows what we are wearing nowadays. gone are the days where you want to have a branded shirt. remember when everyone was dressing head to toe and abercrombie? nobody does that anymore. you can put together these high low outfits as long as they look good because millennials want to get good value. i think this is true for everyone and not just millennials. they want the value and they want to put together a unique look and they don't care where it comes from. vonnie: there's so little differentiation. if it's a praying, people want supreme. if it's abercrombie & fitch, it's very much all the same. shery: especially when it comes to basic apparel. my question is when you talk about amazon, you don't think fashion. how are they going to differentiate themselves with all these other online sites that are really famous for apparel? lindsey: i don't know when the last time you shop for fashion on amazon is. it's a difficult experience and kind of unpleasant, but they sell a lot of basics. if you are looking for sweatpants and searched sweatpants and find something that amazon is saying technical enough without a good price and it's made by the same suppliers like nike or lululemon, maybe you will give it a try. free shipping and free returns so what's the risk? vonnie: is it trying to beef up its effort in order to take over the world of apparel retail or is it supple mental to its other retail? lindsey: it's had a fashion unit for a long time and it has not been successful. they have tried a lot of different things and have not gotten traction. they have a pop-up downtown with calvin klein and it's all calvin klein products, but it's all amazon run deliveries. maybe we will see more collaborations. they are doing more private label and using the same suppliers that the big apparel giant sees. sell on my site or i'm going to copy cap your goods or is it to say i'm doing what you're doing just as well as you can? kind of clear at this point, but amazon sees apparel as a key market they need to get into because everyone buys clothes. if they can get a chunk of that market, that will be adamant for them. they are cheap to ship and relatively cheap to make. shery: what will it mean for those brands? lindsey: that's a great question. right now, the attitude is either you can get a partner and you can either take walmart like a lot of brands have done lately or pick amazon. there are risks to both, but for brands, this means you better have a really great differentiated product. if you are gap and you are selling these basic pieces, you don't have a lot of pricing power. what is the reason for people to come to you? rupp,: lindy thank you for that story. shery: big money, butte ideas. w-- big ideas. we will hear from bruce blatt with under $250 billion worth of assets and management. this is bloomberg. ♪ vonnie: coming in there on a beautiful shot of midtown manhattan. from bloomberg world headquarters in new york, i am vonnie quinn. shery: i'm shery ahn. this is "bloomberg markets." take a look at the markets and they are all gaining could the dow up for three consecutive sessions. we are seeing telecom and tech leading the gains could cryptocurrency going higher after bitcoins started trading on the cbo exchange. energy stocks are leading the gains. brent surging after news that one of the most important pipelines in the oil market has shut down. the nasdaq's highest since november 30. vonnie: let's go to the bloomberg first word news with mark barton. mark: authorities say a 27-year-old brooklyn man is hospitalized and in police custody after setting off accrued pipe bomb that he was wearing in the times square subway station during the start of the morning rush hour. three people suffered minor injuries. authorities say he set up the device shortly after 7:00 a.m. mayor bill de blasio called it an attempted terrorist attack. >> there are no additional known instances at this time. there are no additional known activities. we will wait for a fuller the policeon from and the fbi, but at this point in time, all we know is one individual think god was unsuccessful in his aims. mark: the subway station where the bomb went off is the busiest in new york city. finance ministers from europe's busiest economies are warning steven mnuchin that the proposed tax overhaul plan may violate international treaties on double taxation and trade flows. in a letter secretary mnuchin released today, administrators pointed to the excise tax and the senate proposal for so-called foreign derived income as specific areas of concern. former trump campaign officials paul manafort and rick gates were back in court today for a status conference about the indictments on charges of conspiracy and money laundering. jacksony berman deferred a decision on a proposed bil bail package that would free paul manafort for home confinement and also scolded paul manafort for discussing his charges with foreign media last week, but did not punish him for it. the u.s. supreme court declined to review whether lesbian, gay, and bisexual employees are protected from workplace discrimination by federal civil rights law. a cases refused to hear filed by a former hospital security guard in georgia who says she was fired because she is a lesbian. apple and google took her side in the friend of the court reef. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, i am mark comes in. crumpton. this is bloomberg. vonnie: we want to go back to bitcoin because it is bitcoin day on bloomberg tv. for more on this cryptocurrency, we are joined by many muslim from london. -- naim athlon from london. januaryction to this contract? >> smooth calm sailing. three words and that pretty much sums up the 12 hours of trading. when we were looking at it, we were looking at the spread. we were looking at the value of the futures and the cash flows with the spot prices for bitcoin. the spread between the future and the spot and note it down to 150 coul. that tells us that traders are pretty much calm and as i've written in my article earlier, hedge funds failed to bring that big short that the markets were expecting. why? i think they are thinking that the price of the point hasn't reached its potential. that potential could be anywhere -- vonnie: ok, but who was expecting a massive short? naeem: before this futures market, the large number of hedge funds were pretty much thinking that the market was expecting these hedge funds were going to come and institute they s.ade -- big short trade the way that the circuit breakers were designed and when i was speaking to one of your colleagues last night, i said these circuit breakers are there to protect investors and other parties involved. you may think that the hedge funds are going to come and short this market massively, but these circuit breakers would protect them. what happened on the other hand is that the hedge funds are pretty much of the mindframe that bitcoin has not reached its potential yet. shery: we already saw those trading halls showing you the two times that we saw the hole and trading just because of how fast the price rose. does that mean that we could in fact see in the future some adjustment in the circuit breaker? the limit is too tight right now. naeem: absolutely. i think you have nailed the point by saying that. is known for its volatility. it's in the early days of its adoption. 10% or 20% volatility is something very normal for bitcoin. filters is just a message for the market that we are going to provide that assurance so that you do not lose all of your capital or you do not get massive losses. it just paves the way of further liquidity in the market. vonnie: when we see cme debut its contracts and then down the road, if exchanges are making money on this, of course we are going to debut new products. at some point, doesn't get a little more dangerous for people to be involved in? naeem: i think the biggest danger was today. the biggest danger is between now and when the cme will start trading. because we will see enormous amount of glitches if they do happen the market. we do not anticipate that will happen because i think liquidity -- there are over 3000 contracts traded. they do not represent any for you. we do think the process will be a lot more smoother by the time the cme is coming. phenomena ofire arbitrage between the different exchanges with cme ring in their own product, i think that will narrow it down. arbitrage opportunity come which does exist, and by the way i do attend a number of major summits when it comes to crypto and this is one of the biggest things -- how they can make money based on arbitrage of different products with different action just. exchanges. vonnie: there was a $500 million crypto fun. if he or someone else sees massive trades in this, what is to stop him calling off people that he thinks have made these massive trades and deciding to manipulate the market somehow? i'm not saying intentionally or illegally. i'm just saying it's not regulated, so why wouldn't they? naeem: i think there is a probability of that happening, which when cash is going to settle for these features, there is the potential because they can believe the prices, but that's also true in various other markets as well. bitcoin is not the answer for everything. yes, decentralization is the answer. bitcoin isn't the answer. it's still in the early stages. yes, manipulation could very well be possible. vonnie: chief market analyst you. aslam thank shery: we will dig into the strength of the labor market with the chief economist at indeed. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. shery: i am shery ahn. time for our stock of the hour. shares her story for overstock.com. us.ail doolittle joins this is one of those crypto related stocks. think ofwhen i overstock.com come i think of that online shopping experience, but it turns out they have an entire crypto business. first of all, they do accept bitcoin to pay for the online store. nearlyine shopping is 100% of revenues come up they also have something called mattice ventures, which is a bitcoin segment of their businesses where they happen i think that is that by cryptocurrencies and then bit, a digital fiat currency that will launch this month. what really set the stock thering today is fact that morgan stanley announced an 11% pass of the state, suggesting that they see value in both segments. connectedow how bitcoin is to overstock, let's hop up the bloomberg and take a look at g #btv 3900. vonnie: before you move on come i can't get over the fact that they are calling this cryptocurrency pe fund after the original banking dynasty. abigail: people are saying that new economyly eigh a -- disrupting economy. i was speaking to an analyst and nobody over the summer had a sense of the had anything other than the e-commerce business, but they had thmedici. the stock is up 211% year to date. it's really incredible taking a ride here with bitcoin. relative to tom forte over at davison who covers overstock.com, he has an $85 price target. he is giving 50 itali $50 value by the online business and the other $27 is for the future ici ventures,med which is bring in the revenue now, but they are launching bit this month. he thinks there's big potential there. because the investment banking market is so big, it's a $284 billion market. even if they take just a fraction of it through the cryptocurrency, could be big. overstock absolutely soaring. shery: abigail, thank you so much. you have to combine e-commerce and bitcoin and you have overstock. vonnie: now to abu dhabi. we have bloomberg invest going on right now. leaders tong global unpack significant opportunities and some of the biggest risks facing investors. one of those is bruce flat. erik schatzker sat down with the ceo of the firm and the two discussed brookfield's bid to acquire a mall owner. bruce: we are a fair and transparent organization. the shareholders that own the company are our partners and we want to be fair and open with our shareholders and with the board. we have been that way with the board and we have been that way with shareholders and we will put an offer out there that we think is fair. if they want to do something different, they will do something different. i think at the end of the day, it will all make sense. erik: the thing that makes the gdp offer so fascinating is what makes brookfield unusual and an interesting organization. it takes a contrarian point of view. aboutw you are contrarian u.s. malls effectively, good malls. we know you have been very contrarian about brazil and the early signs are that was a smart bet. in thee anywhere else world that you can be contrarian right now with valuations where they are and with the prospect of rising interest rates? bruce: eight years into a cycle, gets tougher and tougher, but we always find pockets of things to do. you wouldn't have said 18 months ago that buying solar and wind farms in america was going to be a value investment, yet some addison got themselves in trouble and we bought two andanies called terraform bought a large wind and solar business. these things if they are out there, they just come along, but countries -- india has offered value today just because there would be entrepreneurs for a lot of money and the banks are going through a reorganization. erik: you have taken opportunities to sell real estate, american real estate, for example. where else do you feel valuations as a reward today as opposed to selling? bruce: we are always selling and we are always buying. in developed economies, and and fully left properties or power where contracts are long and credit is good, people are paying high prices for those. we have been selling london office buildings. erik: even though you think brexit is going to work out better than most people think . bruce: we are selling fully let once at full he high prices. we are selling on park avenue in new york city. we are selling power plants that are long-term let. we have power lines that have 30 year contracts on them. anything that feels like fixed income to us are selling and anything that has operational develop network to us, that's our business. erik: is there anything that you own or a market in which you now and then participate where you think prices are stupid? bruce: you know, it all depends on what people's parameters of investment are. even the people that are buying on park avenue and buying in london have good reasons for looking at it. they either have fixed income that they are taking out of. they are taking money out of 30 year bonds at 2% and if interest rates go up, they're going to capital erik:. l. erik: what look stupid to you? globalscale helps and competitiveness helps and that's where we go. nothing really. we just a away from markets when they have risen. erik: it's not your business, but does the price of bitcoin look stupid to you? bruce: to us, value is about the insurers and it value of the -- and trusnik values of the cash flow analysis. if something doesn't have cash flow, it will be converted into a cash flow stream. there are some aspects in the world -- assets in the world that don't fit that characteristic and we don't qualify them as assets. therefore, bitcoin would be th e of those. erik: it's not currency and is not massive. intrinsichas no interest i value. if someone wants to speculate on it or invest in it, it's for them and not for us. flatt: that is bruce speaking with erik schatzker at bloomberg invest abu dhabi. shery: time for the bloomberg business flash, a look at the biggest business stories in the news right now. conductors are worth at least $135 a share at 23% valuation. a boston bid by qualcomm to acquire the dutch company. the firm run by paul singer says that qualcomm took advantage of an xp is low trading price last year to make highly for domestic offer of $110 a share. elliott plans on releasing its full valuation shortly while qualcomm's deal to buy an xp could be cleared by regulated by the end of the year. mattel is trying to refinance debt. the maker of the barbie doll says its fourth-quarter sales may be hurt by underperforming brands and retailers accessing tighter control over inventory. before today, mattel stock was down 45% this year. bracing worldwide are for a great disturbance in the force. openswars: the last jedi" this week globally except for china, when it will debut in january. the latest installment in the skywalker saga is expected to bring close to $200 million in north america alone, more than double the combined total of this weekend's top 10 films. that is your business flash update. vonnie: i will bring the popcorn. joel greenblatt joins the indexing crowd. we will dive into his strategy next. this is bloomberg. ♪ shery: this is "bloomberg markets." i'm shery ahn. vonnie: i am vonnie quinn. the eight-year rally in stocks and a lagging performance in many value-oriented funds caused money to flood to asset funds. in today's installment of the future of investing, we take a look at how joel greenblatt is banking on a hybrid accident -- active passive strategy. with us is no a. if we didn't know better, we would say one isn't working, so he's creating this new hybrid active passive as a little something for everybody, but there's something to this, right? this is gaining traction everywhere. noah: right. take one step back, i wanted to focus on joel greenblatt because he occupies a real interesting perch in the world. he teaches at columbia business school where ben graham once taught value investing to warren buffett. joel greenblatt has a very admirable track record. he made a lot of money as a value investor running his own fund back in the 1980's and 1990's. i thought it will be interesting to look at what he's doing these days because he really approach ed the somewhat intellectually and wondered why investors were struggling to stay with a good manager. but he discovered is that people chase returns. they get out at the wrong times and they chase over performance. the net result is that they are not getting the benefit of a good manager even when they find one. shery: what is he trying to achieve here? what does a hybrid fun look like? money inortion of the greenblatt's latest fund just tracks the s&p 500 index. what he's doing with the remainder of the funds us that he's going long and the stocks that he likes on a fundamental basis and he's going short the ones that he things are overvalued. one of the benefits of being able to do this is because of the fund structure. he is able to charge a little bit less than he would for a full active strategy. vonnie: tell us more about joel greenblatt and will other people copied the strategy now that he's doing it? noah: i think that's a great question. like i said, he has got this history. he is a name in the value investing world. i think it's possible that people copy of. and analyst i spoke with at morningstar said there's nothing stopping anyone from doing this in their own portfolio. they can achieve a somewhere outcome by lying a passive fund for a portion of their portfolio and taking an active manager they like with the remainder of the fund. shery: you talk about price a little bit. is this significantly cheaper than an actively managed fund? this is key when it comes to passive investing, isn't it? noah: it is cheaper compared to gotham asset management. his other active funds charge of 2% management fee and the latest hybrid offering is half that. certainly they are trying to make an appeal to investors who are more price sensitive. vonnie: he is not the only valuable manager having his days. it's hard to find stocks that are undervalued. noah: i think that's part of this. we should point out that this -- last year it outperformed 95% of its peers. clearly having this index component to the fund is helping with the results. h, thank you so much for joining us. we head to paris where the third climate day is underway and talk with former u.n. secretary-general at 1:30 p.m. eastern. vonnie: you can catch all of our interviews on the bloomberg at tv . this is bloomberg. ♪ >> it is 1:00 in washington, 6:00 in london, and 2:00 a.m. in hong kong. sherry i'm shery ahn. sherry: will they notice what a recent study says. we will go to paris where the claimant is our underway and talk with the former gm general. the first session of change. what does this mean for future bitcoin regulation. we will discuss. ♪ sherry: the clock is ticking on tax cut. --y have one week to agree come to a agreement if they will get it before the holidays. let's get the la

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