Latest / Bloomberg Intelligence / BlueStar's Schoenfeld: Israeli Stocks Leading Tech Rally(Audio)

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BlueStar's Schoenfeld: Israeli Stocks Leading Tech Rally(Audio) · Bloomberg Intelligence

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  Speaker 1: You're listening to Taking Stock with Kathleen Hayes and Pim
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  Speaker 1: Fox on Bloomberg Radio. What does BMW have to do
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  Speaker 1: with technology that comes from Israel, Well, almost anything. If
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  Speaker 1: you're looking for any of the details of sensors that
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  Speaker 1: tell you that you're going to collide with something or
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  Speaker 1: hit something, chances are it has a lot to do
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  Speaker 1: with the technology found in Mobile I just one of
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  Speaker 1: the Israeli technology companies we're going to speak about with
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  Speaker 1: Stephen Schoenfeld. He is the founder and the chief investment
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  Speaker 1: officer for Blue Star Indexes and he can be followed
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  Speaker 1: on Twitter at s A. Schoenfeld. Stephen, thanks for coming
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  Speaker 1: in much appreciate it great to be here. Before we
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  Speaker 1: get into Mobile I and some specific companies, tell me
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  Speaker 1: a little bit about Blue Star Indexes and its relationship
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  Speaker 1: with the Tel Aviv Stock Exchange. So, Blue Star Indexes
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  Speaker 1: was founded five years ago to build the best and
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  Speaker 1: most comprehensive benchmarks for Israeli equities. As you know, Israeli
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  Speaker 1: stocks are listed in Tel Aviv, but also in London,
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  Speaker 1: on the New York Stock Exchange NASDAC even Singapore. Are
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  Speaker 1: indexes are global, so they're complete and they include Israeli
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  Speaker 1: companies wherever they tend to be listed. We have E
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  Speaker 1: t F s here in the United States trading our
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  Speaker 1: two flagship indexes. The first is Istra. It's a broad
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  Speaker 1: based in E t F for Israel. Think of it
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  Speaker 1: as the S and P five hundred for Israel. That
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  Speaker 1: includes not non technology exactly as well as technology. Correct.
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  Speaker 1: It reflects the full economic sectors of Israel. So technology
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  Speaker 1: is about thirty percent of the index. It's about contribution
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  Speaker 1: to GDP, pharmaceuticals, banking, finance, hotels, the full gamut of
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  Speaker 1: the economy. And then we have I Tech Israel Tech
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  Speaker 1: and that tracks are t A Biggie Tech index sixty
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  Speaker 1: seven stocks technology, but technology broadly defined not just I
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  Speaker 1: T but also biotech, defense, tech, agritech, clean energy, all
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  Speaker 1: the areas that Israel is at the cutting edge. That
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  Speaker 1: et F was launched in November and it trades on
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  Speaker 1: the NAS back. Our relationship with the stock Televis Stock
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  Speaker 1: Exchange is unique, where the first index provided a formally
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  Speaker 1: partner with them. The benchmark for I Tech is called
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  Speaker 1: t A big Ee Tech as you know PIM. The
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  Speaker 1: other benchmarks in Tel Aviv are the T A t
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  Speaker 1: A S T A one. So we're in an associate
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  Speaker 1: member of that family and they serve on our index committee.
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  Speaker 1: And the index is calculated live from the Tel Aviv
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  Speaker 1: open all the way to the New York close. So
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  Speaker 1: it's creating price discovery around all these Israeli companies that
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  Speaker 1: are listed around the world. All right, let's discover some
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  Speaker 1: of those Israeli companies. And I mentioned the BMW and
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  Speaker 1: Mobile I because I thought that would be a real
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  Speaker 1: way to people understand that the technology under the hood
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  Speaker 1: is really everywhere in a car right now, it's not
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  Speaker 1: just the engine absolutely. And in fact, the news from
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  Speaker 1: with BMW was with Mobile I, BMW and Intel first
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  Speaker 1: ever partnership that is definitively saying we will have driverless cars.
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  Speaker 1: We will build driverless cars by now. There's many stages
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  Speaker 1: to that, but Mobile I is that is that every
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  Speaker 1: element of it they are they have about market share,
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  Speaker 1: whether it's to Tesla, BMW, Honda, etcetera. They have smart
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  Speaker 1: cameras and sensors that help develop the tech. It's technology,
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  Speaker 1: it's software and cameras that let the cars drive themselves.
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  Speaker 1: And so it's it's appropriate that they're partnered with Intel,
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  Speaker 1: Because if you want to know the Israel tech story,
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  Speaker 1: think of that old Intel campaign of Intel inside you
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  Speaker 1: look anywhere in the new and evolving tech areas, it's
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  Speaker 1: Israel inside. So mobile I is inside the cars that
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  Speaker 1: drive themselves. DSP is in the most advanced headsets and smartphones.
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  Speaker 1: DSP tell people what DSPs are Digital signal process Yes,
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  Speaker 1: but DSP group has some of the most Think of
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  Speaker 1: the think of the speaker phones of five years ago
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  Speaker 1: and think of them now where it sounds like you're
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  Speaker 1: almost in the same room. The DSP chips are in
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  Speaker 1: the Samsung's smartphone. There in the best desktop for people
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  Speaker 1: who still use desktop phones, and they enable at very
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  Speaker 1: low cost, incredible sound quality. And you just came back
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  Speaker 1: from Israel. You spent some time there. I wonder if
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  Speaker 1: you could give us a little bit of insight into
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  Speaker 1: where what's the biggest trend, where's the money really going
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  Speaker 1: right now? So, um, it was a great trip. I
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  Speaker 1: was able to visit tech incubators North and Haifa South
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  Speaker 1: and Beer Cheva in Jerusalem and as well as Tel Aviv.
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  Speaker 1: Tel Aviv is at the center. But there's innovation all
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  Speaker 1: over Israel. So as an example in beer Cheva. You
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  Speaker 1: have a very unique partnership between Ben Gurion University of
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  Speaker 1: the negative Um, major developers who built office parts, the
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  Speaker 1: government who is being an incubator on this, and major
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  Speaker 1: vcs that have attracted US companies like e M seeing,
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  Speaker 1: Lockheed Martin, major Israeli cyber security companies like cyber Arc
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  Speaker 1: and check I wanted to ask you about cyber cyber Arc.
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  Speaker 1: Checkpoint Systems is a little bit of a veteran in
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  Speaker 1: the in the industry. Just help it build quickly. About
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  Speaker 1: cyber Arc, So let's give Checkpoint the credited it deserves.
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  Speaker 1: And it's in our It's actually the second largest stock
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  Speaker 1: in our index. Checkpoint invented the term firewall, so that
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  Speaker 1: it is that shows it's a veteran. Checkpoint is still
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  Speaker 1: a major player in cybersecurity, as is rad where as
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  Speaker 1: his Elbot. But Cyberarc has come out of nowhere almost
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  Speaker 1: did I p O's had incredible performance. And what they
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  Speaker 1: do is they go deep inside companies networks and they
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  Speaker 1: protect you not they protect companies not just from external
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  Speaker 1: threats but threats within the systems. Thank you very much
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  Speaker 1: for coming in and spending time. Looking forward to having
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  Speaker 1: you one in the future. Stephen Schoenfeldt is the founder
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  Speaker 1: and the chief investment officer for Blue Star Indexes. You
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  Speaker 1: can be followed on Twitter are at s A. Schoenfeld
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  Speaker 1: you're listening to taking Stock, I'm pim Fox and this
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  Speaker 1: is Bloomberg. H