Sterns. Shares closed up more than after ancent 8 analyst at wells fargo boosted evaluation by 40 . They cite potential for m a and margin expansion. An outperform rating on sprint. Apple beat android in mobile shopping on christmas day. Apple operating devices were used to make 20 of all e monday, purchases on compared to five percent of Android Device sales. Fundraising plans were disclosed in an s. E. C. Filing today. Venture capitalists are flocking to companies tied to the virtual current see bitcoin. They raised 25 million. Very goods been a year for the mutual funds industry. U. S. Investors poured money into stock mutual funds more than they have in the last 13 years. Largestt taking the mutual fund. It beat out pimcos total return fund. Executive is chief and cofounder of adviser investments, helping to oversee nearly 3 billion in investments. Jim odonnell is the chief Investment Officer of forward management. They have 5. 5 million in assets. Explain peoples expectations. Oing into 2014 will they have to manage those expectations . Absolutely. Anytime time you get the rubber band this extended, when large andstocks are up over 30 smallcap stocks are up almost 40 , youome cases over really have to dampen expectations. I do not think you will see a repeat of that in 2014. That is a tough act to follow. Talk about some of the managers and the way you organize your investments. There is almost a buffer between the investor and the manager that takes a look at the fund. We build portfolios of managers. We buy mutual funds run by some of the best managers, we think, in the business. Prime cap. Tell us about it. These guys are growth managers. They are looking for companies that have they think there is a catalyst coming. The stock is not selling at super high multiples. A want to buy it now, wait for the catalyst to hit. The price will go up and they will sell. They are Holding Onto Things like roche, Texas Instruments. Who has talked about Texas Instruments lately . In companiesvalues like that, rather than twitter and facebook, things of that nature. In pharmaceuticals. Big in biotech. Big in technology. It is stockpicking. Rather than by an index in 2014 tom a you may have to select people who look at more specific companies. Absolutely. I think we have seen some outperformance i some of the indexes. There has been a bit of bandwagoning. As we move into the next stage, it will be more difficult, more stock tickers. A lot of people talk about the stock pickers market, alpha generation stuff. If you get good managers, they are always generating value. That is what this is all about. Ask you talked about a managed health care fund. How did you do that . And has beenelief for some time that demographics, technology all of that combines to say that if you want to overweight a particular industry in this country or in the world, really, you want to overweight health care. Most of them, over the course of time, do not beat the market. Health care does. With a good manager, you can not only outperform the market, you can do it with less risk. We looked at who is a good diversified manager who is playing with pharmaceuticals and biotech companies. Who is making artificial knees . And Service Companies like United Health care. The Vanguard Fund is now 30 million in size. The same teamhat runs a tiny fund for hartford, Hartford Health care. It is a 700 million fund versus a 30 billion fund. Having a smaller fund which is much more goanywhere is more nimble. They are up 40 some odd percent this year. I want to get your thoughts on real estate. What do you think real estate is going to do for investors next year . I think that real estate has been one of the asset classes, especially, where there have been a lot of Interest Rate concerns that have been somewhat overblown. You have an opportunity to buy a real strong asset class with valuations really cheap, and sentiment is pretty washed out on the negative side there. As we go into earnings season, early january, the most important thing to remember is the earnings visibility these companies have. Really, they have complete earnings visibility, because of the leases, through yearend. Very few Companies Know exactly how much revenue they are going to print in the december quarter on january 1. Excellent i hear of Real Estate Investment trust, i think of payouts. I think of dividends. You have been looking at dividends for largecap stocks. You would much rather earn your income from Capital Gains fromowth than you would monthly or quarterly payouts. There is a manager at Wellington Management who has a fund for bangor called dividend growth. He looks for companies with what i call battleship balance sheets, really strong battleship alan sheets that allowed them to continue raising their dividends. The dividends are not necessarily very high yield. They are probably just a little bit above the market. What you are really looking for is growth in the dividend, which will then accrue to the stock rise, because investors will pay more for that growth. The growth of emerging markets. Do you think this is going to be the year that investors in emerging markets are finally going to be rewarded . I think that over the past decade, investors in emerging markets have done to modestly well. Over the past 18 months, it has been a bit of a rough ride. There has been a flow of capital. You are seeing the end markets for many of these emerging countries are improving. As the u. S. Economy improves, as europe improves, and chinas outlook for 7. 5 gdp growth, rather than seven percent 7 that bodes well for other emerging countries. We have been looking to emerging markets and the growing middle Class Consumer to drive a lot of stock prices. I think what investors have to remember i prefer having an active manager buying my emergingmarket stocks, europe stocks, and japan stock. Everybody is excited about overseas right now. The nikkei is up. Do not forget the dollar is also up. When you translate it back for u. S. Investors, it is not as golden as it looks. For tokyo is not bad, but it is not 55 in u. S. Investors pocket. How does it resonate with investors who always want the next new thing . Our clients are very happy sticking with investments we have done all the work on. It means they are paying less in taxes at the end of the year. You can always buy the fund of the month club or the manager of the month club. We are not very interested in that. We want longterm returns, diversified portfolios. We got our clients through the 2008 debacle, through the bull market. We are all set up for 2014. Toas dan says, do you want chase a fund . I think the temptation always in january is to be a bit of a bandwagon, to read some of the popular magazines. Opt to do it yourself. Potentially, that can put you in the wrong fund at the wrong time. Ettore to buy a longerterm outperforming asset class. It may be a little bit out of favor. Point. At a good entry go toward making money over a three to five year period. My thanks to you. Thanks very much. Coming up, some details on a tax shelter for the ultrarich. It is right here in the usa company telltale has transformed blockbusters such as backed the future and Jurassic Park into profitmaking video games. They hope game of thrones is going to get fans hooked. Is a dinosaur bite. South dakota. When you think south dakota, what do you think of . Buffalo on the prairie . Mount rushmore . It is also a place where the super wealthy can shield their money from estate taxes. Mosttory is one of the popular on bloomberg. Com today. I am joined by zach mider. You are a popular guy today. Tell us about this idea that in south dakota there is a perfectly legal way in which very rich individuals, because it makes sense for them, would be able to shield some of their money from estate taxes. How does this work . You set up a special type of trust you can only set up in certain states like south dakota, called a Dynasty Trust. It allows you to set up a trust that lasts forever. Because it can last so long, rather than having to pass your wealth down to your kids, who have to pass it again and cant get taxed every time they pass it down, you can have this trust last forever and give each generation just what they need. How did this come about . Was it to attract money into south dakota . Exactly right. In 1983, they got rid of this ancient rule that has been in English Common law for centuries that says a trust can only last a certain amount of time. You have a trust that is supposed to last in perpetuity. And what, big money families post office boxes to avail themselves of this . Depending on whether you like south dakota. You do not have to move there to take advantage. Like the pritzker family of chicago . The carlsons, who own the Radisson Hotel chain. All kinds of people take advantage of this. Kinds of people responding to your inquiries when you did this story . Would they talk about the use of these Dynasty Trusts . Not many of them wanted to talk about their estate planning. We did talk to the wrigley family. They said they set up south dakota trusts, but not for tax purposes. For other reasons. Is it expensive to set up these trusts . Compared to the amount of wealthy can potentially shelter, not really. One estimate we saw said that you could set up a trust that within 90 years could be worth 1. 9 billion compared to less if the samellion trust were set up in new york state. The trust get set up. It is never what you would call pay money event or a transfer of assets into an entitled account. When you ever get your money out of the trust . With a Dynasty Trust that lasts forever, each generation would be able to ask the trustee for distributions. But they would only take what they need. They would not have anything to leave to their errors. Their heirs could cap the same trust. Be the does not seem to initial premise of the law, or maybe it is. When congress set up the modern tax law, they just assumed that no states would ever get rid of this rule against perpetuities. The tax laws are designed with the idea that trusts cannot last forever. The obama can, administration has recognized this loophole. I have proposed closing it, but it does not look like anything is going to happen. Money, youave enough can set up your own Trust Company in south dakota. You do not have to have somebody else manage the money for you. You can have them doing it anywhere in the world. You need an office in south dakota. You need an address, a desk and a phone. But for the most part you can have your people, wherever they are, managing the money, wherever it is. Has this benefited the state of south dakota, other than perhaps filing fees . It raises a little over a Million Dollars per year for the state of south dakota. They also figure it has created about 100 jobs at state trust companies. The doors off. Ng south dakota would say it is better than nothing. We might as well bring in this money that would otherwise go somewhere else. Trusts, buffalo, and mount rushmore. Thank you very much, Bloomberg News reporter zach mider. Read the whole story on bloomberg. Com. Holiday season means parties. The real hangover can be dealing with the mess everybody left behind. Coming up, meet a new company you can turn to. You do not even need a mop. It is the season of parties, and if you are hosting one, you may want to bring my next guest to the cleanup. Michael sharpe traded in his job at bank of america about three years ago to create a Company Called myclean. It is a service you can book online. It is finishing the year estimated to have about 4. 5 million in sale, going up to about 6 million. Explain once again what exactly is myclean. We allow the consumer to do everything online. You can go through the entire process of booking. Do on a you want to logistics bases, you can do online. And you can do it as a one off experience orton sign up and say, i live in this area and want someone to clean my house for the next 10 weeks. We are actually incentivizing people. A majority of the business is subscription based. Customers looking for a biweekly appointment up to every two weeks get a 10 discount. Once every four weeks, a five percent numeral five percent discount. We have current clients who hire the same cleaner on a regular basis, versus clients who use us on a oneoff basis. You are getting 500 new sign ups a month . Ask on average. Over 1300 visits a week. And we have subscription clients. We have Office Clients getting every night cleaning, down to residential clients who say, we want you to come every four weeks. Ande started about parties the holiday season. Are you getting any calls specific to that . This time of year, our Business Model is upside down. Business isf our subscription clients. Around the holidays, a lot of our subscription clients are going away. That leaves a lot of extra supply. Our cleaners want to make money around the holidays. We are happy to do postparty cleanings. I did a special promotion where you can get a helper Christmas Eve or christmas day. We are doing something similar for new years eve and new years day. We are getting lower demand on the recurring basis. And we have party claims and things you mentioned. In the next last six months, where would you like the company to be . We want to go to a mobile platform. We have not developed technology that lets customers booked directly on mobile. That is a big opportunity. Once that launches, we are ready to tackle our next city, which we plan to be chicago. Chicago is next. How did you select chicago . We wanted a city that had a similar demographic to new york city. Young, technologysavvy professionals. A relatively dense geographic area. We found there was great demand for a service in the city. It is a beautiful city. We want to come clean it up for you. Bank of america. You were there and decided it was not the career for you. You say that life takes many changes. How did this occur to you . I knew toward the end of my stay at bank of america i had a great experience. Still inmy friends are the financial world, and they are doing great, and i congratulate them. Have they signed up for myclean . They better. I felt i knew my clients. Not for me. Life was i wanted to do something entrepreneurial. I thought this was a huge market, very fragmented, ripe for a disruption with technology. At was what got me into the business. Michael scharf, chief executive of myclean. It is 26 past the hour. That means it is time for the markets. Dow jones industrial average unchanged. S p 500, also unchanged. The nasdaq, down 10 points. Coming up, a look at the world of online gaming. This is taking stock. Let us go to olivia sterns. This past year, apple ceo tim million, a 4. 24 slight raise from 2012, according to the Security Commission filing. Received 4. 25 million. U. S. Ernment reports shows crude supplies fell to the lowest level since september. The turkish manufacturer of Food Products and owner of godiva chocolates has taught a u. S. Million. Pany for 221 they hope to grow in the north america market, benefiting from the distribution network. Thanks very much, olivia sterns. Place, to our right right time segment on taking stock, the videoGame Industry, a 20 billion business a year ago, according to the Entertainment Software association. One of the pioneers, telltale games. They will release tales from the borderlands and game of withes, or a partnership hbo. I am joined by telltale games chief executive dan connors from san francisco. Good to have you with us. Let us start by talking about the basis for telltale. How did you get into the game business . I am an old gamer. Back ind in lucasarts the early 1990s. I founded telltale games with a cofounder, and we wanted to take advantage of the shift in the business toward digital distribution. We wanted to build a plan around episodic gaming as a way of getting people to play games that they could experience over time, and really get into the world very deeply. We built telltale from the ground up to do that very thing. Episodic gaming. Can you explain how that connects with brands such as the walking dead or game of thrones . Most people are familiar with them as serial entertainment on television, on amc or hb it is the way people are most used to experience the content. They get a segment of the story, and then it comes in weekly seasons segments until the season ends. He deliver games, one a month, each with a story that ends in a covering or. It develops characters over time and allows people to be part of the experience throughout the entire time the season runs. How did you determine which brands, which franchises to go and investigate that might turn into successful games . The history of telltale, we have looked at different places. We looked at the Game Industry, franchises that were doing well in the Game Industry, that fans of video games could recognize. We would start trying our episodic series and see what the experience is like. We have always been a big part of the graphic novel world. Our First Franchise is one called bone. There is a scholastic graphic novel. They made up dead the top 10 books on the best selling graphic novel list. We knew there was resonance there, something deep and something we could get into and really explore and bring to the world of videogames, and really take advantage of. Do you need resonance at the box office when it comes to movies in order to qualify to be a potential target for a game maker . The only movie franchises we back to theur uture and Jurassic Park. They are old. For our Business Model, franchises have been around for a long time that have turned into a show, that have an audience that really loves the content and is really committed