And after the comcast time warner deal yesterday another merger has just been announced. A purchase. Joseph a bank will buy the eddie bauer brand. The deal comes after joseph a bank flirted with a merger with mens wearhouse. Why are we so obsessed with using the word merger . I think joseph a banks i think i want to flirt with that. Cristina alesci is here now. You talk about mens wearhouse, joseph a bank. Forust to make clear viewers what i am talking about, because it is part of the bloomberg way, there is no such thing as a merger. It is one the company acquiring another. Was it a good purchase . No, investors are reacting pretty negatively. Shares in the premarket were dropping for joseph a bank. It looks a little bit confusing. Bankmonths ago joseph a made an aggressive quasioffer. Now they are going into a completely different business, the casual down market. I didnt know eddie bauer still existed. It was not a publicly traded company. They got the listed when it was taken private got delisted when it was taken private. A banks is leaving itself out. We can back away with this deal with eddie bauer if someone comes in and tries to bias for a price we would be willing to sell out. It is giving itself an out. Obviously this supports the toument that this is a play gain leverage against the mens wearhouse side of the equation. Also it is trying to message to investors it is not confused because it said on the lower end of the release they have been flirting with eddie bauer since 2002 2012, sorry. Investors dont believe them. I also want to point out that we often have fun at the expense of joseph a banks. Is wall street kids, newcomers stretch themselves. Im sure i had some. I wish i could get people aware of food. Thank you for giving us an update. Now it is time for a story that really resonates with my partner. The annual swimsuit edition of Sports Illustrated hit stands next week. To say it is hot is a gross understatement. They are featuring a familiar face, barbie. The mattel doll will get a five page spread. The caption, the doll that started it all. Them up it is not the cover of the new Sports Illustrated issue is its . Them on the cover will be featuring brazilian booty. Shibley show the jimmy kimmel reveal last night . Should we show the jimmy kimmel reveal last night . Bigger point here about the barbie story is that this is such a head scratcher. Why are you advertising a toy for little girls in a magazine . It is so much better than the barbie cover. Demo why are you advertising a toy for little girls in an advert that in a magazine for teenage boys . Magazine for teenage boys . With a set is barbie has been losing relevancy and she has to compete with ipad, with pop music. Girls idolize katy perry. That is what resonates. They think mattel has made a smart strategic decision to reposition barbie as a fashion icon and popculture brand. Lets see what sally had to say. Sallie krawcheck on barbies unapologetic campaign. Its awful, right . I dont even know what to say. I remember looking at my barbie and looking at my mother and looking back at my barbie and saying, whats wrong with her . I was five or six. It is a terrible message. I can remember as i put corvette thinking my mom cannot fit in this. This draws the line in the are in the sand. If you are a bad parent you by your children a barbie. Work ed to barbie is already turning mothers off so the mothers are not going to buy it. That is why you have unapologetic. Madonna has a whole song, im not sorry. Whips and chains. What is she talking about . This was a deliberate strategy. Attel had a meeting the number of times unapologetic has mentioned has surged. If the goal was to get people talking it sells. I think they are in for a world of trouble. Rich handler is one of the founders of barbie. And saidut a tweet barbie has always represented that a woman has choices. Ages dontughout the exactly match up with the barbie we now see. A lot of brand executives think relatively the new barbie is quite taste full because she is not in a string this string bikini. If creator of barbie you have a daughter which are now not by your daughter is barbie . , this would not turn me off of buying barbie in any way. Im not saying my daughter wants it. By your daughter a barbie and her her oath sort give both Sports Illustrated covers. Im going to say it is hot. Not six. M those are three gorgeous women. Good for them. Them up that is true. Thank you for joining us. It is valentines day. Happy valentines day. Let me move on to the bitcoin story. Road, 2. 0. The online black market which was shut down several months ago by the fed, this is the reincarnation of that. It is not the same site and there have been a number of different sites where you can buy coke or get hookers. Apparently the website has been hacked. Saysis what the founders in let me explain to you how this works. Road 2. 0unning silk and you want to buy an illegal has won tostephanie sell, you give me a bitcoin, stephanie you give her the barbie and when you verify that your barbie is totally illegal i passed the bitcoin onto you. I am holding the escrow. , he isis guy has said holding a 2. 7 million in escrow. He said peace, im out of here. He said he has been hacked. I am not walking away with the money myself, someone stole it. My take away is someone probably split the money like the last guys who ran the website. Some bad eggs. There are is some drug dealers after this dude. We are going to be back with more. We have a lot to cover. We are going inside the mine death inside the mind inside the mind of howard marks. Youre watching in the loop live on Bloomberg Television. Every possible device. Is howard marks, chairman of Oaktree Capital management. Lets take a look at how his work has become a crucial tool for achieving success. Nearly half a century howard marks has been one of the true scholars of finance. He began his professional career at citigroup, assuming vice chiefent before becoming branching officer. He found Oaktree Capital management, a firm focused on alternative investing, contrarian bets, and highyield credits. Oaktree raised 11 billion to buy distressed assets, which were ripe for the picking. Oaktree rise to 30 since two and 12. Oaktree memos have become required reading all over wall street with Warren Buffett describing it as a rarity. Howard marks is in the loop. What a treat for us. In your latest letter to investors, you say in short it make sense to and make sense most games arent as easy as they used to be. What does that mean . My lucky day came in 1978. I started that banks yield fund. There was a rule against highyield bonds. Are0 of the people prevented from buying something, it may be cheap. Do not understand highyield bonds or think they were respectable. Name, junk. , the point is nowadays anybody understands everything. You take out your browser and google it. Everybody will still do everything. Nobody ever says we can make some money at it but it is not respectable. About andknows understands everything. It is just harder to find the free lunch. It brings up an interesting point that you showed us the oped for the new york times. I thought that was stephanie who locked that in. The point is there is no such thing as an unacceptable investment. There are 8000 hedge funds, most of them pride themselves on their flexibility. Should they do anything . Should hedge funds and investors stick to their knitting . , every investor makes their own choice. You can know everything about a few things or a little bit about a lot of things. I think the former is better. You say there are two big risks that you could face be at everybody faces two big risks. The first one is the risk of losing money. The second is the risk of missing opportunity. To aen i dont want to go park and miss it, suddenly it was great. It is terribly corrosive for somebody to have to sit there and watch other people make money. Eventually most people quit. They say they are going to do it. You have to balance these things. Dont want to miss out so i am going to do it modestly. That makes a lot of sense. It is not which managers to met managers to invest with. It is about being aggressive in this point in time. If you get that right the other stuff will work out. Oaktree was up 65 so i think youre getting the aggressive the aggressiveness of it. The problem isnt that they have it is that they have just plain fear. Our approach to investing is it inherently emphasizes risk control. People say risk control is great because it keeps you from losing money when the market goes down. Risk control is great for another reason, it permits you to be fully invested. It will fare pretty well if things go badly. You can be fully invested and not miss out. 2012, the market surprised people by doing as well as it did. We were fully invested in our portfolios in risk control securities, which allowed us to participate. You, in looking around the world, when i think of a distressed investor i think of elliott. Of are not that kind distressed investor. Virtually all of what we do is corporate debt or assets. Our reason is there are lots of ways to make money. There are ways to make money i dont believe in. There are also people who do a great job at it. Corporate debte investing. You can do it reliably. You can analyze a company and figure out whether it can pay its debts. There is no recourse if you dont . , that is right. You do invest internationally. You are a globetrotter. Very much so. My partner has been running our distress phones for over for over 25 years. We know how it is going to go. He is a great strategic chess player. And figure outad what a piece of that is going to be worth. You cant tell that in a political setting. Charter is one of your top 10 holdings. Charter and time warner, that does not seem to be the case. Would you say john malone is the loser here . He didnt win Time Warner Cable. He didnt win yesterday. Everyone makes sports analogies. The differences with a football game, at 3 00 you know who one. With the investment business, you turn it on at noon and you know who won five years later or 10 years later. The person with the highest score one and a football game. Just because comcast won the deal doesnt mean this was a great investment. There is a right price and a wrong price. You can overpay. One of the things that drives me crazy is in the industry, it drags on our business. Buying is not success. Buying and making money is success. We are going to cover more. Welcome black welcome back to Bloomberg Television. I am Stephanie Ruhle joined by matt miller. 26 minutes after the hour, that means we are on the market. We will take a quick look at futures here. Very little change in the futures market. The s p is a tiny little green arrow there. Nasdaq futures up 1 10 of one percent. It was such a horrible start to 2014. We have had the best fourday rally in over a year. Look at individual movers here, twitter, we are keeping our eyes on shares of the microblogging site as insiders get their first chance to sell the stocks. They will increase the number of shares eligible for trading by about 12 . It will also increase the number of robberies in california. Is taking a hit in the premarket after joseph a it will buyced eddie bauer. Investors immediately take mens wearhouse as the loser and joseph a bank as the winner because joseph a bank made the acquisition. Howard marks is a style star. I wont let you connect him to joseph a bank. Olympics,e you to the disappointing results from the american speed skating team. They were designed specifically for the olympic games. Lockheed was involved in the design. Critics say there could be a andgn flaw creating drag holding racers back. Under armour is not buying the excuse. They say it is the most scientifically advanced and Gregory Baxley and rigorously tested suit and a multitude of factors determine success. This is a big setback not just for the olympians but for kevin. This was going to be a great opportunity to make a big footprint. Thehe end of all this, suits were delivered in the beginning of january. They tested them in salt lake, in italy. I spoke to kevin a few weeks ago. More than half our revenues will come from outside the country. We have a tremendous amount of running room. I think we are going to tell a great story to the world. One of the issues could be altered to. You are performing and playing at a completely different to suit that different altitude. A lot of speedskating events are held at high altitudes. Do they have a special polymer that makes you faster . Why not just wear a speedo . Maybe as a gift for viewers. You are pretty aerodynamic. I dont want to watch that race. It is going to take more than to get you out of the doghouse if your spouse catches you. His motto is life is short. Welcome back. Day, in valentines case you werent paying attention. We are going to be speaking with top players in the industry of love. What we are talking about isnt so conventional. Tomorrow if valentines day doesnt going to plan, hundreds of thousands will turn to our next guest. Im almost afraid to movie on the same set with you. To be on the same set as you. Site with aating huge caveat. It is for people who are already in relationships but looking to pursue something on the side. It is for cheaters. Are married but your enthusiastic about having affairs . I am an entrepreneur. When i saw a huge percentage of people werent truly single on dating sites and there was an alternative path, i thought to build something. Which you invest . At a price. A market for everything or was there him when i saw that data it was really compelling. We all know affairs happen. By how manyown away people will come to a service like ours. That is what it has become. I just learned this this morning, the day after valentines day for a Cheating Website is like black friday. , itf you have expectations is not the first time it has felt hollow. This is the second time it has felt hollow. You can do a lot of things that people may say is healthier. You may also find a lover. What is healthier than sex . There is romance in a. How you cash in on the fact that tomorrow everybody is logging in . All of our revenues are 100 subscriptionbased read it is not that you actually give as a Monthly Subscription and get as as manyes and messages as you want. You pay per message. Women want to be an object of desire it again. For that day we have more women than men. Are you surprised by this . I am from a different era than the three of you. I didnt get the memo. As a guy who uses technology to do a number of things, you worried about the paper trail. Do have to use a fake email address . In his digital lipstick. Is there a way to do it anonymously . Is there a bitcoin version . Is meetingect affair someone and not being discovered. Everything is about the discretionary part of it. When he finished on a traditional dating site, youre taking your profile to circulation. We will recall every message you ever sent. Thinking it through. Do you have meet and greets . , we do not. Platform. Ntroductory have you been subpoenaed in any divorces . , thankfully we have woken up to the reality that people can divorce for a host of reasons. Infidelity is a symptom, it is not the cause. More. Y get divorced before we read these facts we know this to be true. We need to ask howard what he thinks. What neighborhood has the most infidelity . Staten island. Demott that is a great answer and probably true. The kind of infidelity that uses the internet to make it happen, you know that is happening in tribeca. Affluentvery well with communities. We did incredibly well in tough economic times. When people need their mom need their partner the most i cant believe Brooklyn Heights is on there. Just because someone has an affair doesnt mean they arent good people. I dont care if it is president s, famous entertainers, it just means they are struggling with monogamy. You are saying monogamy is a choice. It doesnt mean you are a bad person. It is a manmade construct. It is not in our dna. Im going to publicly disagree with you. On yourre cheating wife, you are a bad person. The reason it is this successful is because women have radically changed in the back in the past decade. Do you think it is now socially acceptable if you are a cheater . Honey, if you are watching, i am not involved. There is no price anymore. I think we are all complex. Lots of people who are good people in many ways and do bad things. There are people who are bad in other ways. Maybe it doesnt make you a bad person but it is definitely the wrong thing to do if you are having an affair with someone else. We are not behind closed doors. Isl we hear all the time members want to cherish their economic situation. Their children, their family. They dont want to leave all that. There are four of us, you are the only unmarried one. The reason is because i take marriage very seriously. What is your Growth Strategy . You are making it happen, there is a market for it. It is hard to build a universal product. Your parents have to be involved in economics and so. Infidelity is pretty global. Even in a culture where it is prohibited by law people do it. Really is no marketplace we cant see ourselves expanding into. Matus gave me a clean note. Someone just message me and said if you are cheating on your wife you cant be trusted. I will disagree with that. I think that is a historically bad notion. Do you know who people like . Bill clinton. He is the ceo of ashley madison. Com. We have a lot more with howard marks. We want to know what he is thinking about. Stay with us. Welcome back to in the loop. Our guest host for the hour, howard marks. We have five burning questions. I dont know if we can beat what we just did. You in youray movie . I think robin williams. I have been told i look like michael douglas. When i had a beard and robin had appeared, i think we were dead ringers. I was going to go george clooney. What is your favorite place to be . I like to relax in a place called mallorca. A lot of germans there. When was the last time you have been . June. We urge we are free june this year. What about regrets . Your biggest investment mistake . Not being john paulson. John paulson had the biggest trade in history. Got famous making a billion off the weakness. Funds existed 10 years before that trade. You have been chugging along since 1995. Do you want to have just one extraordinary hits . Who is your favorite . My favorite howard is howard marks. Youll get your europes biggest drug smuggler. He is my age within a few months. The main difference is he is welsh. He is better education better educated. He did seven years inside hard time. You look him up and invited him over . Mine hefriend of put us together. Nice guy . Nice guy. Did you get a picture together . No. He wrote a book and autograph it for me. Last question, what is your vice . Moving from one house to an