Biotech is down 3 . A lot of this is politics and the unknown there but also these stocks were super, super great performers over the last five, six, or seven years and i still think theyre pretty overowned so i think that you can actually, based on the bull packs, i think you can start to look at some of the bio techs and i do still think you juan to find special situation stories. Either new management teams or companies that have gotten hit really hard from currency so im kind of looking at Something Like an abbott labs. A back administer. At a United Health care im not in a rush to buy the bio techs until we get more clarity these are the poster children for the move from growth into value. It condition be all about politics. Yes, Hillary Clintons tweets may have started the clyde but it cannot be all about politics as to why these stocks cant do anything. Right. Well, its what happened with valeant and having it go from a 30 billion stock at the beginning of the week to 9 billion. Theres a lot of ugliness in the space and and this week i bought bristol myers. I was out of it the next day. Those were bio techs but i was trying to pick the safer picks and even those blew up. The only trade that did it all was buying when we got down to the Double Bottom around the 240 level. Did you buy regeneron. No wasnt me but i am already out of it. Im shortening my name frame. Still shortening the towel here or look for opportunity. Im amazed when you think about 85 still above the shortterm moving average which is incredible to have that much of the market that close to at least the year high and then you have the market that doesnt seem to want to play. The xlv is hanging in there a little bit better so theyre having more of a rebound its now sitting on 240 which was the february 11th low and i wouldnt be shocked if it did so i would just basically say maybe focus on the big pharma. These names are on the distribution and i think that the messages Earnings Growth does not automatically equal stock gains and the short squeeze elsewhere. Its a great example. Theres money continuing to come out of the space and go into areas like the banks. The bank etf is up like five straight weeks. Airlines are doing well. The transports are up nine weeks in a row. Right. Well, if you want to focus on banks for a second while they are up in recent history theyre down year over year. Its been a very difficult place to invest. I do think youll see future gains there. And that doesnt mean that they go up just because they pointed that out or i said that. It may take time for the bottom to form most of the sectors dont have earnings. I think 50 of it is the top 8 or 9 names and they do have earnings isnt the message that money is just going elsewhere . Its going into discretionary and materials and industrials in the banks and other places tech and what have you. Its not going into these areas right because the dollar peaked or seems to have peaked. Oil is stabilizing going up. Those are hard to get through in january of this year and they created volatility. So you have people going into value versus growth and going into value sectors and even financials. What turns it around, right . Why should we believe that this trend will turn around any time soon . But there is value in health care but they dont have to worry about a political candidate coming out and saying xyz company and running a commercial saying were going to rush you i think the pharmaceutical companies will benefit as the dollar comes down and guidance through the year should improve and theyre very healthy balance yields. Thats where they will go to when they go to. Theres a perception growing that manufacturing in the u. S. Is coming back but thats coming back. Its positive as the folks were saying. Its up 10 ahead of the big event on monday. Is the worst for apple over or not . Its a waiting game so the worst isnt over yet. You dont think we saw the bottom in apple for the year in. Well yes but it wont be over for a long time and then the Sales Numbers wont be available until the next quarter so thats a long time to wait but josh when he and i argued about, you know, whether or not the fbi probe and all the rest would really hurt the stock when it was 96 as soon as it got to 100 i bought it. Who would have thought it would have helped it maybe . I dont think thats what driving apple here. It may not be driving but didnt hurt the company. More risk to the down side than up. If the Consumer Staples are going to rally it makes sense for apple to rally along with them. In many senses of that term staple its become one we have iphones but we continue to buy them and continue to upgrade. The itunes ecosystem, et cetera, et cetera, and so why should apple be the cheepest consumer staple. Why should they sell it at 9 or 10 times cash when people are paying 18, 19, 20 or clorox and kimberlyclark. Maybe it doesnt make sense to sale a consumer tapel type name like apple at 9 or 10 and you can tell me that tech is not a state, i get that. They have no competitors for what they do. Its the whole value conversation. A true value player thats underweight apple is now in it. As it goes boz tif on the year up 10 in a month. What is alphabet year to date or one month . Its up six. Its okay. Amazon is up 7. Thats fine. But apple is outpacing and i wonder if its for other reasons. I do think some of the fang money is going into apple. I think expectations got just too low in the 90s. This is a great growth story. Its not the hyper growth story that it was but still a great growth story and great product story as josh just mentioned and i dont like the set up into monday because its up so much into it and i dont know if this is going to be a needle mover to be honest with you but i like their cash position. I think theyll return it to shareholders. I see a catalyst in the second half of the year and im willing to wait at 8 or 9 times x cash. Theres a debate as to whether it is a Growth Company or not and for the last several months when it got down into the 90s people are saying it is a consumer staple and the growth is gone. However and in the last week Morgan Stanley came out with a note saying their channel checks are showing that iphone sales are higher than people expected. Thats where people are starting to focus that there may be growth yet ahead in apple. Quick programming note. Be sure to stay tuned to mondays show. Well be joined by the number one tech analyst on wall street. Hes going to break down the apple trade just ahead of that big event and of course cnbc will have a big team out there as well covering it. Heres whats coming up on the halftime report. Still ahead buy and hold. Its like people only do things because they get paid. Were paying the long game. Find out where he is finding value in energy and more. Plus, diamonds. High end hotels and casinos. Lots of luxury stocks on the move today. Well at the you how to trade the news. And its quadruple witching day john unveils what he wants to buy with all of his extra cash from todays options expiration. Its all coming up on the halftime report. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. Like in rochester, with worldclass botox. And in buffalo, where medicine meets the future. Let us help grow your companys tomorrow today at business. Ny. Gov hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Implts welcome back. I have break news on the lawsuit against sumner red stone. The judge right now is hearing arguments in the case to unseal documents but the judge has already issued a tentative ruling to unseal certain documents in the case with the exception of medical records. The documents might include logs from his house and about red stone state as well as the declaration from sherri in support of missing this case and they should not have to make public the significant medical ailment and in order to control his own Health Care Decision and right now the lawyers represenning the press say this is a unique situation. Well be back to hear whether its made official and also whether we might get access to these documents. Back to you. All right. Julia in los angeles. Smart money endured its fair share of pain this year as hedge funds were down 6 coming into the week. Obviously a big shake out t. Way i have been putting it is the market stumped the smart money lately. As you say, off to a very rough start. I would say down twice as much as the market was heading into this week. I dont think this rally necessarily played to hedge fund strength. Equity focused hedge funds have not gotten that much better in march. Everybody talked about bill ackman being buried by that Valeant Pharmaceuticals stake and really the pain is much more widespread thats been the most punished crowded trade of the year. They also track thats those overly owned stocks. Down 6 year to date though the stocks that are least owned by the way by hedge funds up 2 . So if hedge funds dont like the stock they have been up. If they love the stock they have been down. By the way, the most heavy shorted also out performing the market this year. Its late cycle activity. We came into last year. The market was pretty well picked over and you had people crowding into the same names and then you had the activist focus funds that their magic doesnt work quite as well when credit mashlths arent there and you cant do quite as much Financial Engineering and the big question is is this a storm thats going to be weathered or are they going to be able to take some advantage of the kind of mispriced assets that its produced. Well, our next guest has a longterm track record even though the last year or so has been a challenge as the environment has grown more volatile. He runs a firm at lyrical partners. You hear what he was talking about and we mentioned your track record but speak to the environment that were in that you and your contemporaries have been in thats been a challenge to say the least. Especially for long only funds. Yeah and more so for time when fundamental value is in favor even though its clearly out performed and we are in a period but from june of 2014 from the way we see it until february 11th you just had a long period where fundamental value was under performing as opposed to out performing but they happened at various times. What do you do when you throw your hands up and youre like nothing works . Nothing is working. How do you handle that. What works best is you wait. And the only thing you can do is wait. Anything else will probably only makes things worse. Its growing louder as to whether its back. Diamond bottom, we refer to it when you talk about the financials but theres other indications within that period that maybe that was a significant day. Whats your take on that question whether value is, in fact, back for good. I think its back. Its not something were really sure about. Market timing and things like that, thats not our specialty. Our specialty is analyzing businesses and figuring out what theyre going to earn. But given how long the period of value underperformance was, the timing lines up nicely, these period of under performance last 28 months or 24 months at the long side and were about 21 months all the way through this so it fits well with the timing. The strength of the recovery has been strong. We had spectacular returns to undervalued stocks since that february 11th bottom so it seems to fit. Is it going to be high or low quality value . Off the bottom it was low quality that started to out perform in value land and high quality stocks rebounded a lot too. Im worried about the 33 that we own and as long as they go up i dont care what else is going up with them. Hang on. Im sorry. Its interesting that you say the 30 or so stocks that you own, you have a concentrated portfolio. You dont do that much trading. You did make a recent move. You said when i asked you what do you do, how do you handle some of the situations that exist within the market you said you wait. You also look for value and you found it. Tell me about it. Its a stock that im not sure that we talked about on this program. And almost all of your viewers have a product in your house. They make equipment used for providing Cable Television. They make set top boxes and if youre watching cnbc on your ipad and getting it through the data they make those gateways so about half their profits come from customer equipment. The equipment in your house to get high speed data and Cable Television and the other half of their profits come from the equipment at the Cable Companies end. Im sure. How do you separate a cheap stock from something thats going to go away. They were cheep the whole way down up until recently. Whats the one thing that if you can think of one thing that helps you separate those two things. Ill give you two things, if thats okay. Its up to scott. So when i have looked at the history of all of the stocks that i have owned what i noticed is one, if i separated all the value stocks i own between those that are good businesses, those that generate high returns on invested capital and those that are bad businesses we get a lot more of the good businesses right. Good businesses make us look smarter and we get a lot more of them right and the other thing that i noticed is when we stick to the easy businesses, the ones ee siz to analyze we get more of them right. We dont own any coal. Well take a quick break and come back and talk about more stocks this is the bull case. The cable boxes are so linked to the Cable Television universe. Isnt that an issue . Its an issue but i think for the cable tv customers its a bit of a fake issue. Cord cutting is and theyre more competitive like apple tv and other alternatives to cable. They arent going to give up on that fight. Theyre going to fight really hard too and theyre the arms dealer to the Cable Companies and so if cable needs, in the past when they din have competition they could leave you with a lousy guy or product. Now they need to be competitive. They need great guides and great product and they are the product supplier. Well take a quick break. Theyre on your screen there on the move. More with andrew wellington including his top four value picks in energy and the companies he calls unbelievable bargains. Plus going global. A fund manager with 45 billion in assets making the case for the emerging markets and as we head to break, a look at the dow heat map. Up 115. 2thirds of 1 . Were back after this. Environment, an everg Companies Must adapt. But one thing should remain constant a financial relationship with someone that understands and cares about your business. Pnc corporate and Institutional Banking offers strategies tailored to your companys needs. Know that our dedicated teams of local experts offer insight to help you achieve your business objectives. See how working with pnc can help your company grow at pnc. Com ideas today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. We are back talking value and growth. Is there value to be had until the energy path . There is. Theres also a lot of uncertainty with whats going on with the price of oil but we own a small number of very high Quality Energy stocks that we think are at bargain prices. Eog is one of them . Eog may be the very best operator in the energy space. They essentially invented the whole concept of fracking and horizontal drilling and enjoy all the first mover advantages. So i know steph you owned it as well. Yes. Right . What about the push back of just sort of where prices are, where net gas prices are. Where the political conversation is, how does that factor into this stock . This was the one. Maybe im thinking of something else. It is a blue chip and you want to have some exposure in the enp space. I look at their assets and what they own. You have great assets. Probably the best. Their technology is also extremely amazing and superior than their competition and the only question i have andrew is that they vn done a secondary and everybody else has done a secondary. You think that maybe they have to do one . Or might they just do one just to sure up their Balance Sheet better than what it is. I dont think they would want to issue shares at this price and the Balance Sheet is very strong and their cost of production are low so they don need to raise the capital. What about some of the issues that i raised about where prices are in this space and just the whole political environment around fracking as well. Well, i have been doing this for 20 years and i have yet to own a perfect stock so theres always risks in the backdrop and we dont think they rise may not be perfect but if theres a perfect storm around it, you could have a problem. We could in which case 97 of our portfolio is not invested in energy. Good point. Point taken. You like both . We do. We rarely own two companies from the same industry but they represent such ext