• 6.7 billion yen ($60 million) in cryptocurrency has been stolen by hackers from a Japanese digital exchange called Zaif.
• Tech Bureau Corp, the Osaka based company that owns the exchange, said hackers gained access for a timeframe of over two hours on September 14 and stole money from Zaif’s ‘hot wallet’ where Bitcoin and other digital currencies are stored, Reuters reported.
• Server problems were detected on September 17, with the company sounding the alarm to authorities the following day. The exchange was taken offline, and efforts have been underway to get it working again.

Hackers have stolen 6.7 billion yen ($60 million) in Bitcoin and two other cryptocurrencies from the Japanese digital exchange, Zaif, owned by startup Tech Bureau Corp, the company said on Thursday.

In a statement following the hack, Tech Bureau said that its Zaif exchange was hacked in a window of over two hours on September 14. They detected server problems on September 17, confirmed the hack and sounded the alarm to authorities the following day, Reuters reported.

Tech Bureau Corp said the perpetrators gained access to its 'hot wallet' where the digital coins are stored. The platform has been taken offline, but it said efforts were underway to get it working again.

Japan has been a leader in cryptocurrencies and has set up a system of licensing digital exchanges with the government to regulate the market and protect consumers. The system is designed to make Japan a world leader in the financial technology.

Bitcoin has been legal tender in Japan since April 2017, and some retailers in the country already accept the digital payments, The Washington Post reported. But Thursday’s hack and others before it show the technology is still having teething problems.

The digital exchange, Coincheck, which is based in Tokyo, reported that 58 billion yen ($547 million) in cryptocurrencies disappeared earlier in the year, in what was suspected to be another theft by hackers.

Coincheck had been applying for a government licence since 2012, but still didn’t have at the time it was hacked, sparking debate in the industry. Zaif was registered by the government last year.

On Thursday, after the hack, the company said it had accepted a 5 billion yen ($45 million) offer of investment from Tokyo based company Fisco, for a majority stake in Tech Bureau.

Bitcoin and Manacoin were among the cryptocurrencies taken in the September 14 breach. 2.2 billion yen ($20 million) of the stolen currency belonged to the company and the rest were owned by customers, Tech Corp said.

SEE ALSO: The UK could become a 'global centre' for crypto assets if it regulates the 'Wild west' space, MPs say

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NOW WATCH: Ray Dalio says the economy looks like 1937 and a downturn is coming in about two years

• Bank of America Merrill Lynch argues the equity bull market as we know it is over, and urges investors to start looking ahead at how to combat the coming collapse.
• It offers a "perverse" trade suggestion to help combat the economic recession that's likely to accompany any stock-market crash.

At this point, everyone knows that the ongoing equity bull market is the longest on record.

But there's another attribute that makes the 9-1/2-year bull run truly unique compared to history: its deflationary nature.

If you're unfamiliar with the concept of deflation, it refers to the general decline in prices for goods and services. As it relates to the market, Bank of America Merrill Lynch points out that as stocks have soared to record highs, brokerage commissions have slipped from $80 billion to $30 billion since 2000.

"It's been the most deflationary bull market of all time,"Michael Hartnett, BAML's chief investment strategist, wrote in a recent client note.

This dynamic can be seen in the chart below, which shows the extreme degree to which deflationary assets have outperformed their inflationary counterparts over the past decade or so.

For context, the deflation group includes government bonds, US investment-grade bonds, the S&P 500, US consumer discretionary equities, growth stocks, and US high-yield credit.

Meanwhile, the inflation group contains commodities, Treasury inflation protected securities (TIPS), developed market stocks (ex-US and Canada), US banks, value stocks, and cash.

But why? How did the longest bull market on record end up carrying such an unflattering distinction?

BAML attributes it to what it calls the three Ds: technological Disruption, aging Demographics, and excess Debt.

To make matters even more dire, BAML argues the bull market as we know it is essentially over. As Hartnett puts it, "end of excess liquidity = end of excess returns." And since monetary tightening from global central banks is widely expected to drain liquidity, returns won't be far behind.

Harnett also highlights the fact that if you remove US tech from the equation, global stocks are actually down 7% this year. That's hardly the sign of a thriving bull market.

In the likely case that the inevitable crash in global asset prices also ushers in a full-blown economic recession — as it frequently has in the past — BAML offers what it calls a "perverse" trading suggestion.

It says traders should buy the inflationary assets that have been so righteously shunned during the bull market. That specifically means commodities, developed-market stocks outside of the US and Canada, bank stocks, and value equities.

With those recommendations in mind, you should be at least somewhat well-equipped to battle any coming recession. And even if you end up feeling pressure, following these types of trade suggestions should at least spare you the maximum level of pain.

SEE ALSO: The inside story of how an old-school Scottish firm became an early investor in many of Silicon Valley's most prized unicorns, and made a killing in the process

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• An Australian football club has issued a grovelling apology after three of its players were photographed in blackface.
• The athletes were dressed as tennis champions Serena Williams and Venus Williams and Kenyan-born football player Aliir Aliir.
• The incident follows the controversy surrounding Australian newspaper The Herald Sun's mean-spirited crusade against Serena Williams after the American's outburst at the 2018 US Open final.

Three football players have been photographed dressed in blackface as tennis champions Serena Williams and Venus Williams.

The athletes play for the Australian Rules Football team Penguin Football Club, a sports team based in Tasmania, according to The Washington Post.

They wore outfits and makeup to dress up as the Williams sisters and Kenyan-born football player Aliir Aliir as part of "Mad Monday"— an end-of-season celebration.

A photo of the "costumes" was posted on social media and, though it has been removed from Facebook, it has been shared by a number of Twitter users.

Penguin Football Club has since issued a grovelling apology.

"It was not their intention to upset anyone and all they meant to do was dress as one of their sporting idols," the club said, according to Australian ABC News.

"Their actions were never intended to be racist in any way. Those concerned have been reprimanded and will be given support to make sure they understand that their behaviour was racist and hurtful and that it will not happen again.

The club went on: "The players concerned have acknowledged that what they did was completely and utterly unacceptable and would like to apologise unreservedly for their lack of judgement."

The incident follows the controversy over Australian newspaper The Herald Sun's mean-spirited crusade against Serena Williams following the American's outburst at the 2018 US Open final.

The Herald Sun published a vulgar cartoon which grossly exaggerated her weight, lips, and nose and depicted her as an angry baby. The paper has also attempted to discredit her character by calling her "no feminist hero" and a "fraud."

The newspaper's editor defended the cartoon, and the artist himself countered global condemnation by claiming "the world has just gone crazy."

SEE ALSO: The cartoonist who turned Serena Williams into an angry baby doesn't think his drawing is racist and says 'the world has just gone crazy'

DON'T MISS: Tennis umpires are reportedly considering a boycott of Serena Williams' matches unless she apologizes for calling Carlos Ramos a 'liar' and a 'thief'

UP NEXT: The newspaper that published the 'angry baby' Serena Williams cartoon ran a hit piece saying she is 'no feminist hero' — here's why they're dead wrong

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NOW WATCH: What it takes to be an NFL referee

• Emilia Clarke plays the heroine Daenerys Targaryen on the hit TV show "Game of Thrones."
• She has now joined the list of celebrities who have tattoos to remember their movie and TV roles.
• The actress revealed on "Live With Kelly and Ryan" in May that she was getting a small dragon tattoo to remember her character on the show.
• An Instagram post on Thursday showed that she was telling the truth — and it shows off her new dragon tattoo.
• The eighth and final season of "Game of Thrones" will premiere in the "first half" of 2019.

"Game of Thrones" actress Emilia Clarke got a tattoo of three dragons on her left wrist as a tribute to her role as the Mother of Dragons — and her Instagram post on Thursday shows the finished product. 

In May, Clarke — who plays Daenerys Targaryen on HBO's "Game of Thrones" – confessed during an appearance on "Live With Kelly and Ryan" that she was going to get a dragon tattoo, INSIDER reported.

She was as good as her word, and showed off her new ink on Instagram on Thursday:

In the caption, she said the celebrity tattoo artist responsible, Doctor Woo, "made sure this mamma ain’t NEVER forgetting her babies," referring to three dragons she tames on the show. 

"Live with Kelly and Ryan" host Ryan Seacrest blew up Clarke's tattoo secret when he interviewed her back in May.

He said: "I was in a tattoo parlor the other day...trying to make an appointment...and they said they were full because you're coming in to get a tattoo of a dragon."

After conceding that Seacrest was right, Clarke said: "I'm going to get a dragon right here, sort of flying away," as she pointed to the inside of her left wrist.

"I sort of think that's cool...a little kind of peace out."

Shes not the only "Game of Thrones" star to get commemorative ink: Clarke's co-stars, Maisie Williams and Sophie Turner, who play Sansa and Arya Stark on the show, have matching tattoos to remember the day they were cast on the HBO series.

Read about what vital details you could have missed in season seven of  the show here.

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NOW WATCH: One bite from this tick could ruin red meat for the rest of your life

Here is what you need to know.

China is reportedly planning to slash import tariffs as soon as next month. Beijing is planning to cut the average tariff rate on imports from most of its trading partners as soon as next month, Bloomberg says.

Argentina's GDP craters in the 2nd quarter as an economic crisis grips the country. Argentina's gross domestic product fell 4.2% year-over-year in the second quarter after a severe drought roiled agricultural production and as the country works with the International Monetary Fund to stem a spiraling economic crisis.

Jack Ma says Trump's trade war with China will wreck Alibaba's plans to help create 1 million US jobs. "The promise was made on the premise of friendly US-China partnership and rational trade relations," Ma told the Chinese state-run news outlet Xinhua. "That premise no longer exists today, so our promise cannot be fulfilled."

Japan had its 2nd major bitcoin heist of the year. Hackers stole 6.7 billion yen ($60 million) in bitcoin and two other cryptocurrencies from the Japanese digital exchange Zaif on September 14, the company said Thursday.

Canadian cannabis producer Tilray had a wild day after its CEO appeared on 'Mad Money.'Shares soared as much as 93% — before being halted at least five times and finishing up 38% — Wednesday after CEO Brendan Kennedy laid out his company's growth prospects to the CNBC host Jim Cramer on "Mad Money."

Aston Martin is seeking a $6.7 billion valuation for its IPO. The British maker of luxury cars has set a price range of 7.50 pounds to 22.50 pounds, or about $10 to $30, for its October initial public offering, Reuters says.

India's richest man's plan to revolutionize the country's telecom industry with cheap data seems to be working. Two years ago, Reliance Industries' chairman, Mukesh Ambani, developed a plan to bring cheap data to India, and on Wednesday the latest figures released by the Telecom Regulatory Authority of India showed his Reliance Jio unit added 1.79 million subscribers in July, 10 times as much as all rivals combined.

Stock markets around the world are higher. Hong Kong's Hang Seng (+0.26%) led the gains in Asia, and France's CAC (+0.64%) is out front in Europe. The S&P 500 is set to open little changed near 2,911.

Earnings reporting is light. Darden Restaurants reports ahead of the opening bell, and Micron Technology releases its quarterly results after markets close.

US economic data keeps coming. The Philly Fed and initial claims are set for release at 8:30 a.m. ET before existing-home sales cross the wires at 10 a.m. ET. The US 10-year yield is up 1 basis point at 3.07%.

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• British budget supermarket Iceland just launched ready-made scrambled eggs.
• The eggs come in a microwaveable pouch and cost £1.50 ($2) per 250g portion.
• Iceland says the product was developed for workers and students who were short on time, skill, or workplace cooking facilities.
• People on social media were quick to condemn the product as lazy and overpriced.
• It's actually quicker to scramble fresh eggs in the microwave than it is to heat up Iceland's new dish, depending on how many eggs you're cooking.

Does whisking make your arm tired?

Does the thought of turning on a hob send shivers down your spine?

If so, budget UK supermarket chain Iceland has just the product for you.

Iceland just announced its launch of ready-made scrambled eggs, which come in a microwaveable pouch and cost £1.50 ($2) per 250g portion.

The supermarket says its new product is aimed at students and workers who lack the time, skill, or available resources to make the simple dish.

A study of 1,000 people by Iceland revealed that 13% of students don't know how to boil an egg, let alone scramble one.

The survey also showed that 46% of workers lacked the facilities to scramble eggs at work and that 16% ate at their desks.

The ready-made dish takes 90 seconds to heat up in the microwave. However, according to BBC Good Food, that's actually longer than it takes to scramble fresh eggs in the microwave — it can be done in as little as 30 seconds, depending on how many eggs are used.

Iceland says its dish is made with four free range eggs, but the cost is more than half a dozen fresh eggs from UK supermarkets Tesco and Asda, which sell for £1 ($1.32).

The launch was quick to be ridiculed on Twitter as people condemned the product as lazy and overpriced.

Rachelle Strauss tweeted: "Unless you have mobility issues with your wrists/hands, this is wrong on so many levels."

"How does anyone not know how to scramble an egg?!" BBC Spotlight presenter Ollie Yates tweeted.

Iceland says their product fills a gap for those short on time or equipment, though.

The supermarket's Head Chef Neil Nugent said: "Convenience and quality is fundamental to all of Iceland’s dishes, even simple ones like scrambled egg. It's really easy for our customers to cook at work with limited resources on offer, or those needing a speedy breakfast at home.

"Our ready-made scrambled eggs are made using British free range eggs with a little seasoning and are ready in just 90 seconds. For the perfect breakfast, serve on seeded bread with smoked salmon."

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NOW WATCH: 3 surprising ways humans are still evolving

• President Donald Trump's newest round of tariffs on $200 billion worth of Chinese goods adds a new element to the trade war.
• For the first time, consumer goods are going to be directly hit by the new 10% duty, likely causing an immediate increase in prices for US shoppers.
• The increase in inflation from the new trade war attack "will be meaningful," economists say.

President Donald Trump's latest round of tariffs added a new dimension to the trade war with China: US consumers are going to get hit directly.

The previous round of tariffs imposed by the president on $50 billion worth of Chinese goods focused almost exclusively on industrial goods and intermediate parts on final goods that are then sold to consumers.

This led to an indirect hit to consumers. As businesses faced higher costs for input goods, the companies were forced to either cut back in other areas — such as laying off workers — or pass along the price increase to consumers.

While the effect on consumers has trickled down previously, the latest round of tariffs on $200 billion worth of Chinese goods constitutes a direct hit.

Many of the 5,745 items on the newest tariff list are consumer goods or things that Americans buy every day: fruit juice, furniture, air conditioners, and more.

The consumer goods affected represents a dramatic increase form the previous round of tariffs, according to a breakdown of a previous version of the list of goods affected. (Many of those items made it to the final list.) Chad Bown, Euijin Jung, and Zhiyao Lu of the Peterson Institute for International Economics say the reason for the shift is simple: The were only so many goods left to hit.

"Consumer goods made up only 1% of the products of the first $50 billion of imports from China subject to his announced tariffs. The rest affected intermediate inputs and capital equipment,"the economists wrote. "The explanation for this shift lies in the fact that there are fewer and fewer such supply chain elements left to target. Consumer products are much of the imports from China that were left."

The sellers could choose to eat those new duties and see their margins decline. But based on price changes for goods hit with tariffs in previous rounds, it is likely that at least some of the cost increase will be handed to consumers.

Many members of the Trump administration have argued that the increases will be minor and most Americans won't notice.

""Well, you can do the numbers this way if you have a 10% tariff on another $200 billion, that's $20 billion a year. That's a tiny, tiny, tiny fraction of 1% total inflation in the US, because it's spread over thousands and thousands of products,"Commerce Secretary Wilbur Ross said Tuesday. "Nobody's going to actually notice it at the end of the day."

But many economists disagree, since businesses that sell the same goods but don't source the product from China may see an opportunity to grow their profits by matching the price increase. Ultimately, this will lead to price increases for consumers and a boost to inflation, economists say.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, argued in a note to clients on Tuesday that while the real danger lies in the tariffs' increase from 10% to 25% at the start of 2019, the initial hit will be significant, too.

"The inflation hit is harder to quantify, but it will be meaningful," Shepherdson wrote. "Most items of clothing and furniture are exempt from the tariffs but many food items are included. We don't know for sure how quickly importers will raise wholesale prices of the affected items, or how quickly manufacturers of substitutes for Chinese products will lift their prices."

Based on Shepherdson's rough math, the new tariffs could add another 0.5 percentage points to the current consumer price index — which, based on the latest CPI release, would boost the inflation gauge to 3.2% year-over-year. Such an increase would not go unnoticed by policymakers or American families.

"That's enough to matter, both to the Federal Reserve and to the public, who will notice when prices in Walmart start to jump," Shepherdson said.

SEE ALSO: Trump just announced tariffs on another $200 billion worth of Chinese goods. Here are all the products that will get hit.

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• The big four accounting firms could be broken up as part of a "radical" overhaul of the industry under a Labour government, the shadow chancellor John McDonnell has said.
• McDonnell told the Financial Times that the big four firms which include EY, KPMG, Deloitte and PwC form a "cartel" that needs to be addressed.
• The politician has commissioned Prem Sikka, professor of accounting at Sheffield University to conduct a review before any policies are formed.
• In May a cross party group of MP’s spanning two select committees called for the big four "cosy club incapable of providing the degree of independent challenge needed."

The big four accounting firms could be broken up as part of a radical change promised by the UK's Labour party, a senior opposition politician said ahead of a party conference on Sunday.

Shadow chancellor John McDonnell told the Financial Times that a "radical" overhaul of the sector would be carried out by a Labour government to end the big four’s dominance, which he described as a "cartel."

Britain’s big four accounting firms which include EY, KPMG, Deloitte and PwC, dominate the auditing of Britain’s 350 largest companies and have been under increasing pressure after financial reporting scandals involving telecom giant BT, food retailer Tesco and the collapse of Carillion.

Critics say the big four have a monopoly on the industry, reducing the quality of their company reviews, and have conflicts of interest through the firm's work as both auditors and consultants for clients.

"They have demonstrated that they have a range of conflicts of interest" McDonnell told the Financial Times. "I don’t think they have addressed the public anger about their role." 

The shadow chancellor added that Labour is considering breaking up the big four or limiting the number of companies each firm is allowed to audit to allow competition back into the market. Labour is also considering banning companies from both auditing and consulting for the same client.

McDonnell has commissioned a "radical review of the industry" which will be done by Prem Sikka, professor of accounting at Sheffield University.  "We are looking for radical solutions… There is a range of options."

The politician said no decision would be made on policy until he sees the recommendations in the report, which Labour requested in January following the collapse of the construction company Carillion.

In May, a cross party group of MP’s spanning two select committees called for the big four firms to be referred to the competition markets authority for possible break-up, after an inquiry following Carillion's collapse. MP’s called it a "cosy club incapable of providing the degree of independent challenge needed."

Carillion's collapse also demonstrated a "catastrophic" inadequacy in the UK’s regulatory system, McDonnell said.

SEE ALSO: Labour wants to try giving people free money with no strings attached

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NOW WATCH: Beware one huge mistake investors often make when the economy is at a crossroads, says Charles Schwab’s investment chief

• Congress is negotiating a bill that could strip airlines of their power to levy extra fees, such as for flight changes and extra baggage.
• If it passes, American Airlines would almost certainly remove the option for customers to change their ticket if they bought a non-refundable flight, CEO Doug Parker said.
• Major US airline companies, including American Airlines, currently charge a $200 change fee for non-refundable flights.
• Parker said: "We — like the baseball team, like the opera — would say, 'We're sorry, it was nonr-efundable.'"

American Airlines is threatening to make customers who paid for non-refundable flights pay for a new one if they want to change the time.

Doug Parker, the airlines' CEO, said according to the Associated Press: "We — like the baseball team, like the opera — would say, 'We're sorry, it was non-refundable.'"

Parker's statement comes as the House and Senate negotiate a bill to reauthorize the Federal Aviation Administration, which would include clauses stripping airlines of their power to levy extra fees, including those for flight changes and extra baggage. The FAA reauthorization bill needs to be finalized by September 30.

Parker said that if the provision becomes law, American Airlines would almost certainly remove the option for customers to change their ticket if they bought a non-refundable flight — the cheapest fare.

Business Insider has contacted American Airlines for further comment.

American Airlines currently charges a $200 change fee on non-refundable domestic flights.

Parker said that it doesn't cost the airlines $200 to change a customer's ticket, but stood by its extra charge.

He said, according to the Associated Press: "We knew that seat was going to be filled. It allowed us to do other things as we sold the rest of the airplane.

"If you want to change that, we have a new product but it's going to cost you something because it cost us something."

Many other major US airline companies also charge a $200 change fee on non-refundable flights. Southwest Airlines, however, allows customers to change or cancel their tickets for free.

Airline companies have earned billions in extra fees in recent years.

US airlines received $2.9 billion in flight change fees last year, with American Airlines earning the most out of all of them with $878 million, the Associated Press reported.

Fees for checked baggage also brought airlines an extra $4.6 billion last year, the Wall Street Journal reported — ten times more than the $464 million those same fees reaped ten years ago.

The price of crude oil increased more than 50% over the past year, denting the profits of many airline companies. Companies across the industry have warned that the extra cost would be passed onto the customer in the shape of increased plane tickets and change fees.

American Airlines on Friday will also join Delta Air Lines and United Airlines in raising the fee of one checked bag from $25 to $30 in an industry-wide trend known as "unbundling."

Unbundling is the practice of separating various costs of services like baggage check, security check, seat assignments, meals, wi-fi use, and early boarding into their own price points.

SEE ALSO: The world's 3 biggest airlines have all raised their checked baggage fees

READ MORE: 8 ways to avoid paying an airline change fee

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• Goldman Sachs has formulated a way to identify stocks that are both inexpensive and also investing in future growth opportunities.
• To that end, the firm identified 12 companies it expects to outperform for value investors, even in a market where growth stocks have been so dominant.

By many metrics, the stock market is among the most expensive in history.

But Goldman Sachs finds that, from one perspective, it's actually quite average.

The gauge in question is free cash flow (FCF) yield, which measures a company's FCF relative to its market value. Generally, the lower it is, the more attractive investment opportunities are. And right now, it's sitting comfortably in the 56th percentile compared to history, according to Goldman data.

But it's not that simple. This discrepancy only exists because capital expenditures (capex) as a share of cash flow from operations (CFO) are historically low, says Goldman. 

"Every dollar of CFO not spent on capex is accretive to FCF," Goldman clarifies. "Firms with high FCF yield often appear attractively valued simply because they have slashed capex."

What investors should do is adjust FCF yield to incorporate how much a company is investing in both growth capex and research and development, says David Kostin, the firm's chief US equity strategist. Then, once they have a firm handle on adjusted FCF yield, they can make informed stock picks.

This is particularly useful for value investors, or those seeking bargins in the market. It helps them avoid so-called value traps — the term used for companies that are cheap simply because they're bad.

In the end, adjusted FCF yield is intended to identify good companies whose stocks also meet the traditional definition of value.

Luckily for value investors, Goldman maintains a basket of high adjusted FCF yield companies. The firm's top 12 picks are as follow:

SEE ALSO: The inside story of how an old-school Scottish firm became an early investor in many of Silicon Valley's most prized unicorns, and made a killing in the process

12. Foot Locker

Ticker: FL

Industry: Consumer discretionary

Market cap: $5 billion

Adjusted FCF yield: 15%

Source: Goldman Sachs

11. Intel

Ticker: INTC

Industry: Information technology

Market cap: $216 billion

Adjusted FCF yield: 15%

Source: Goldman Sachs

10. AES Corp.

Ticker: AES

Industry: Utilities

Market cap: $9 billion

Adjusted FCF yield: 15%

Source: Goldman Sachs

• Neuberger Berman's Small Cap Growth Fund is outperforming its benchmark this year, thanks to a handful of healthcare and tech stocks. 
• Two of the fund's managers recently spoke to Business Insider about their strategy and some of their top stocks. 

Investors looking for under-the-radar stocks can find a fertile ground in the small-cap universe. 

In that space, companies worth between $200 million to $2 billion receive much less attention than the FANG stocks, for example. And the fund managers who perform best are able to jump on stocks that have catalysts the market has not yet recognized. 

This sums up the strategy of Neuberger Berman's Small Cap Growth Fund and its managers. The $100 million fund has appreciated by 28% this year, outpacing the 11% gain of the benchmark Russell 2000. It's also the best-performing fund this year across the firm, according to Morningstar. 

"We love it when almost nobody follows a company on the street, and we do our own research, and then they find out about it later," Ken Turek, a fund manager, told Business Insider. "If it's a good story, the stock price moves up."

Turek also attributed the fund's performance to its relatively flat management structure. Unlike other funds, Turek and his colleagues don't have to run every stock pick by a head portfolio manager. 

"It was a much quicker way for ideas to get into the portfolio if we gave the authority to the sector analysts to actually institute trades," he said. "We run the portfolio with almost zero cash so when a new idea comes up, something else in the portfolio has to be moved out." 

What they won't buy, however, includes companies in commodity-based sectors like materials, chemicals, and others that they don't have an edge on.  

The stocks with the biggest weights in their portfolio are in healthcare and tech. Here are three of them. 

Sientra

This company is one of three big players in the roughly $500 million market for breast implants and reconstruction surgery in the US, according to Marco Minonne, another fund manager. Its stock is up 155% this year.

A fire ravaged Sientra's Brazilian manufacturer's plant in 2015, but Minonne sees the company recouping its lost market share in the breast-implant market over time.    

What he's really bullish about, however, is a product called MiraDry, which aims to treat excessive underarm sweating, a condition known as axillary hyperhidrosis.  

MiraDry's treatment destroys the sweat glands in armpits, and promises to deal with problems like stains on white undershirts. The procedure lasts for an hour, although side effects like soreness and tingling may linger for weeks. 

Minonne said Botox, an alternative treatment, is less desirable than MiraDry because it involves several doctor's visits and pricks.

Sientra's return on investment is quick, he said, as the company can recoup the cost of one its machines within a year by treating one patient a week. 

"We also see a path towards a doubling of the stock over time if the MiraDray rollout comes out very similar to what CoolSculpting [a fat-reduction treatment] did for Zeltiq," Minonne said.

Minonne estimated that the market for servicing patients who need to treat hyperhidrosis as a medical condition —  not just those who want to sweat less — is about $1.5 billion.

Chegg

The company first earned its reputation as a place where students could buy or rent discounted textbooks.

Chegg still promises that students can save up to 90% off full prices, but has expanded its services into what Turek called an "Uber for tutors." That's a reference to the independent contractors who assist students in subjects ranging from algebra to medieval philosophy. 

"What parent isn't going to pay 20 bucks a month to have their kid do a better job in school and get better grades," Turek said. "And over time, they will probably add more services to the product line." 

He sees the company's success as stemming from word-of-mouth marketing among students and the ease of using the product. 

What also makes Chegg attractive is the size of its addressable market. According to the National Center for Education Statistics, 15 million students are expected to enroll in high school this fall, and 20 million in college.

"They currently have like 2 million subscribers [2.2 million in 2017 according to company filings], so you don't have to be particularly heroic in your assumptions of what the subscriber growth could be," Turek said. 

Chegg's stock has gained 89% this year. The company reported 32% revenue growth in the second quarter, while subscribers increased by 45%.

"It's inevitable that more people are going to learn online, not less," CEO Dan Rosensweig told CNBC after the earnings results. 

Ring Central 

Ring Central, with a market cap of $7 billion, provides companies with cloud-based telephony, messaging, and video conferencing. Its appeal to Turek stems from making these essential services cheaper for companies.

In a traditional setup, companies need to invest in a so-called private branch exchange (PBX) that allows many staff members to share a single number. A PBX also routes callers to the appropriate extension and allows them to leave voice messages.  

"A company like Ring basically hosts all of your services for you so you don't have the capital expense, you don't have the IT staff on board, and you can very easily manage consumption of various communication," Turek said. 

He added that the company carved out a niche by marketing to small-to-medium-sized businesses, and is scaling up to larger corporations. 

This company is one of the largest holdings in the small-cap fund's portfolio and has surged 156% since it was first added in July 2017. 

SEE ALSO: A fund manager who's crushing nearly all of her peers breaks down 3 under-the-radar stocks driving her strong performance

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NOW WATCH: 3 surprising ways humans are still evolving

• Former Google CEO Eric Schmidt said that he believes the internet will split in two within a decade.
• He told an audience at a private event in San Francisco that he foresees a break between the Chinese-led internet and the non-Chinese led internet.
• Google has recently come under fire over plans to expand into China with "Project Dragonfly."

Ex-Google CEO Eric Schmidt on Wednesday predicted that the internet will split in two in the next decade, CNBC reports.

Speaking at a private event in San Francisco, Schmidt said that he believes China will effectively split away and create its own internet.

"I think the most likely scenario now is not a splintering, but rather a bifurcation into a Chinese-led internet and a non-Chinese internet led by America," he said.

"If you look at China, and I was just there, the scale of the companies that are being built, the services being built, the wealth that is being created is phenomenal. Chinese Internet is a greater percentage of the GDP of China, which is a big number, than the same percentage of the US, which is also a big number.

If you think of China as like 'Oh yeah, they’re good with the Internet,' you're missing the point. Globalization means that they get to play too. I think you’re going to see fantastic leadership in products and services from China. There's a real danger that along with those products and services comes a different leadership regime from government, with censorship, controls, etc."

Schmidt has flagged up Chinese technological advancement before. In November of last year he warned the US that it would have to step up its game if it didn't want to be outgunned by China on AI, predicting that it would be a world leader in the industry by 2030.

He also said on Wednesday that other countries could end up adopting a Chinese model of the internet. "Look at the way BRI works — their Belt and Road Initiative, which involves 60-ish countries — it's perfectly possible those countries will begin to take on the infrastructure that China has with some loss of freedom."

The Belt and Road Initiative is China's infrastructure project to link itself to 70 countries across Asia, Africa, Europe, and Oceania with railways and shipping lanes.

Google has recently come under fire for its dealings with China over reports that current CEO Sundar Pichai held government talks about launching a censored version of Google search there. The reports sparked outrage both within and without, with some employees resigning in protest and human rights groups calling on Pichai to reverse the decision.

SEE ALSO: Google employees considered manipulating search results to help protest Trump's travel ban

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• Marion "Suge" Knight pleaded no contest to a manslaughter charge after running over businessman Terry Carter, who died.
• Knight co-founded the record label which helped Snoop Dogg, Dr. Dre, and Tupac Shakur on their way to greatness in the 1990s.
• The plea is part of a deal with California prosecutors under which he will serve a 28-year jail term.
• Knight ran Carter down in his Ford pick-up truck on the set of a commercial for the movie "N.W.A", then fled the scene. 
• The no-contest plea means Knight is not formally admitting guilt, but still letting the court decide on a punishment for him.

The rap-music mogul Marion "Suge" Knight has been sentenced to 28 years in jail after pleading no contest to a manslaughter charged on Thursday.

Knight ran down Terry Carter, a business associate and friend, while driving his Ford pick-up truck on a Los Angeles movie set in January 2015. He also hit a second man, who survived.

The Death Row Records co-founder entered a "no contest" plea to a charge of voluntary manslaughter at the Los Angeles Superior Court on Thursday, the Associated Press reported.

Pleading no contest means that a person does not formally admit guilt, but still accepts a punishment from the court. The plea was part of a deal with prosecutors.

The celebrity news site TMZ acquired and published a video of the incident. It shows the moment of impact, and some viewers may find it upsetting.

The killing, on the set of a commercial for the movie "N.W.A", began with a verbal altercation outside a burger restaurant.

The dispute escalated, and ended with Knight driving his red Ford F-150 truck into Carter, who later died, and also "Training Day" actor Cle Sloan, who was wounded.

Reports from the time said Knight turned himself into police the day after the killing. 

He received a sentence of 28 years in prison, AP reported. Twenty-two are for the killing, and six were added to his conviction under California's "three strikes" law which mandates harsher punishments for a third conviction.

Knight already has a conviction for armed robbery, and pleaded no contest to an assault in the 1990s, AP reported.

Knight was initially charged with murder, attempted murder, and hit-and-run, before the accusations were dialled down to voluntary manslaughter under the plea deal. If convicted of the original charges, Knight would have faced life in prison.

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Forests are creepy enough in their own right.

Add some urban legends about murder victims who now roam the forest as ghosts, and you'll never want to wander through one again.

We rounded up 10 forests around the world that are thought to be haunted.

Aokigahara Forest, Japan

Sitting on the northwestern side of Mount Fuji, Aokigahara Forest (more commonly known as "Suicide Forest") is the definition of tragic beauty. Sometimes referred to as the Sea of Trees, it has been the site of numerous suicides, dating all the way back to the mid 1900s. 

In fact, a sign at the forest's entrance reminds visitors that "life is a precious gift" and to reach out if they are struggling.

The reason for its reputation could have something to do with the fact that Japanese mythology has long associated the forest with demons. Plus, the tightly packed trees make it easy to get lost and even hear, providing an exceptionally isolated destination.

Spiritualists in the country say Aokigahara is a hotbed of paranormal activity. But even if you don't believe in ghosts, you're likely to get spooked by the everyday items that litter the forest floor.

Isla de las Munecas, Mexico

As if forests weren't scary enough on their own, this one located along the canals of Xochimico, near Mexico City, is covered in dolls that hang from the trees. Local legend has it that the island's caretaker hung the first doll to honor a little girl that he had found drowned on the island (the doll was thought to be hers).

The caretaker then felt as if he was being haunted by the girl's spirit, so he continued to string up dolls in hopes of appeasing her. Fifty years and plenty of dolls later, he reportedly drowned in the same spot the girl did.

Today, the island has become a popular tourist destination. Visitors claim that the dolls move their eyes, heads, and limbs, and that they're possessed by spirits. 

Hoia Baciu Forest, Romania

It seems fitting that a haunted forest in Romania would be located near the unofficial capital of the country's Transylvania region — Cluj-Napoca. Hoia Baciu was first recognized for being haunted when a military technician photographed what he claimed was a UFO that appeared in a part of the forest known as "the clearing" in 1968.

The clearing has stumped visitors, locals, and even scientists for decades. It's a spot where nothing grows and nothing has ever grown, according to official records. What's even weirder though, is that the trees that do grow in the forest grow in odd patterns — zig zags and spirals that no one has ever been able to explain.

Brave tourists can tour the forest at night, though many have reported feeling an odd sense of anxiety or nausea, or the feeling of being watched.

• Twitch, the hugely popular streaming service, has been banned in China.
• The ban came after a spike in popularity, probably caused by users watching an eSports tournament.
• Some users view the ban as an oppression of free speech, and the Chinese government have recently been tightening control on the gaming industry.

Twitch, the streaming giant famous for launching eSports into the stratosphere, has confirmed that it is now banned in China.

Abacus first reported that Twitch's website was unavailable in mainland China, and that its app had quietly vanished from the Chinese Apple App Store. Twitch confirmed to Business Insider that it has been banned.

Twitch declined to comment on why it had been banned, or whether it had had any prior warning from the Chinese government. Abacus pointed to a recent spike in usership for Twitch, which rocketed to the number three position for free apps after Chinese users tuned in to watch coverage of esports championship the Asian Games, which was not broadcast on state television.

Abacus reports that the ban has enraged Chinese Twitch users, some of whom see the crackdown as oppression of free speech. China has has recently become stricter with the video game industry. The government unexpectedly suspended the approval of new games in August, including Fortnite, sending gaming giant Tencent's stock tumbling by $140 billion. Billions of minutes of "Fortnite" gameplay are watched each month on Twitch, according to internal figures.

Twitch has a massive viewership, with 15 million daily active users worldwide. It has also catapulted video game streamers like Tyler "Ninja" Blevins to fame and fortune, as thousands tune in to watch him play Fortnite.

The esports industry is also exploding, Goldman Sachs valued the market at $500 million in 2016, and expects annual compound growth of 22% over the next three years. China in particular has seen a boom in the esports market, and in August Chinese video-streaming stocks surged.

SEE ALSO: Fortnite — a free video game — is a billion- dollar money machine

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• Six people, including three children, are in New York hospitals with knife wounds, after an incident at a daycare in Queens at 3:40 a.m. on Friday morning.
• Police told NBC  that one of the injured people, a 52-year-old woman, had self-inflicted wrist wounds.
•  One child has "serious injuries," police also said.

Five people, including three children, have been stabbed at a "non-licensed overnight daycare" in New York at 3:40 a.m. on Friday, police say.

One more woman was found with self-inflicted knife wounds to her left wrist in the basement of the 161st Street venue, police told Fox 5 News.

She is in police custody at an local area hospital, NBC News 4 reported

NBC report police confirming two girls and a boy have knife wounds – and one of those girls is in serious condition.

The adult man and woman, were also stabbed at around on Friday, Fox 5 News reported.

The man was injured and stabbed in the leg and is the father to one of the children, although it is not clear whether his child was injured, NBC were told by Police. 

The woman hurt was a worker at the daycare, officials said. They are also being treated at an area hospital. 

None of the injuries are considered to be life-threatening, NBC 4 reported.

The first reports emerged on Twitter, Marvin Hoffman tweeted this video at the scene:

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• Microbiome startup uBiome, best known for its tests that sequence the bugs living in us, is expanding into drug development.
• Boosted by $83 million in series C funding, the San Francisco-based startup plans to take the information it's gathered to create therapies that act on the microbiome to treat conditions like cancer and metabolic disorders. 
• The team has also recruited former Novartis CEO Joe Jimenez to its board and plans to open up a therapeutics headquarters in Cambridge, Massachusetts. 

The bugs that live in our gut might one day soon be used to guide the way we treat everything from infections to cancer.

Now, uBiome, a startup that sells tests that sequence the microbiome, or the assortment of bacteria and other microbes that live in us, is getting in on the action. It plans to use the information it's assembled from its tests to go on the hunt for therapies that could treat conditions like cancer, autoimmune diseases, and metabolic disorders. 

To assist in that endeavor, the San Francisco-based startup said Friday that it had raised $83 million in a series C round led by OS Fund, along with 8VC, Y Combinator, and Dentsu Ventures. In total, uBiome has raised $105 million. The team has also recruited former Novartis CEO Joe Jimenez to its board and plans to open up a therapeutics headquarters in Cambridge, Massachusetts. 

"Our mission at uBiome is to advance the science and make it useful" uBiome CEO Jessica Richman told Business Insider.

That started by better understanding the microbiome, then it led to the clinical tests — like the company's SmartJane test looks at the vaginal microbiome to test for sexually transmitted diseases as well as chronic vaginal infections — and now it'll be through finding drug candidates.  

The microbiome

Scientists have been working on ways to use the microbiome to unlock new treatments for difficult diseases. It's led to new companies — both on the medical side and in agriculture— that are taking a range of approaches to looking at the microbiome. It's often seen as the "forgotten organ."

Read more: The microbiome has been called the forgotten organ — and it could hold the 'next paradigm shift in science and medicine'

It's this world that uBiome wants to tap into, going beyond decoding the bugs that live within you and instead leveraging them into potential treatments for cancer, metabolic conditions and autoiummine diseases. 

Here's how that will play out. All of the data will stay in-house, and users of the different tests can opt in to sharing their data for research purposes. From that data, uBiome has already started finding potential drugs that can then start to be developed, either by uBiome or in collaboration with outside partners.

The drug candidates can be in one of three groups: bugs as drugs (microbes added to a person's system to treat a condition), drugs for bugs (treatments that target microbes), or drugs from bugs (treatments derived from a particular microbe). 

So far, Richman said, the company has collected 250,000 microbiome samples from users, and she expects that sample count to hit 1 million in 2019. Richman said uBiome plans to launch additional clinical tests in addition to SmartJane and SmartGut, which is used to map out the organisms in your gut for people with gut conditions like irritable bowel syndrome. 

uBiome isn't the only testing company that's moved into drug development. Consumer genetics company 23andMe has been partnering with pharmaceutical companies which mine 23andMe's database of users who've consented to share their data. Then in 2015, 23andMe started getting into drug development on its own, hiring a former Genentech executive, Richard Scheller,to lead the team. Most recently, pharma giant GlaxoSmithKline made a $300 million bet on 23andMe's approach to finding new medicines. Much of the approach is different from uBiome, which isn't sharing its data with partners, just potential therapies after they've been discovered.

And there's an interesting difference between a genetics test and a microbiome test: Unlike your genome, the genetic information you're born with, the microbiome can change over time. It offers the possibility that by changing up diet or other factors, you may be able to get your microbes back to a healthy state. For uBiome's purposes, monitoring changes in the microbiome could also hint at whether a drug candidate is doing what it's meant to be doing. 

"The way we look at it in the same way that a heart rate and blood pressure blood draw would be considered primary care, we think the microbiome should be on the same level," Bryan Johnson, co-founder of OS Fund told Business Insider. 

See also: 

• Meet the 30 healthcare leaders under 40 who are using technology to shape the future of medicine
• How cells engineered to make everything from medicine to perfume will change the way we see our world

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• UnitedHealth Group, the US-based healthcare giant, is growing its footprint outside the US. 
• Its first big move was in 2012 into Brazil, with the acquisition of a company called Amil. 
• The experience has been beneficial to both UnitedHealth's business in the US and in the countries it's expanded into, UnitedHealthcare Global CEO Molly Joseph told Business Insider. 
• "I think that's been a rich experience for UnitedHealth Group locally within our international markets as well as what we've taken from those markets that have perhaps added to our flexibility and innovation throughout the broader enterprise," Joseph said. 

Minnesota-based healthcare giant UnitedHealth Group has a lot on its plate.

The company has a $256 billion market cap, employs more than 285,000 people, and makes $201.2 billion in revenue.

And in recent years, the company has set its sights beyond the US healthcare system. UnitedHealthcare Global CEO Molly Joseph has been with the organization for 15 years, 10 of which have been focused on exploring healthcare markets outside of the US. 

In 2012, UnitedHealth made its first big move outside the US when it bought Amil, the largest healthcare company in Brazil. 

In many ways, Brazil's health system looks a lot different from the US's. In 1988, Brazil wrote universal healthcare into its constitution, saying public healthcare had to be free to all 200 million citizens.

For most Brazilians, the public system covers everything from checkups to hospital stays. About 26% of the population is covered by private health insurance, usually provided by employers, similar to the system in the US. On both the public and private sides, there can be issues: long waits associated with the public system, and rising costs for private health insurance.

Read more: US investors are pouring millions into a healthcare company that doesn't take insurance and lists its prices like a 'McDonald's menu'

As part of its business, Amil operated hospitals. When UnitedHealth came on board, Joseph said, they decided to go beyond hospitals so that they weren't the only place members could go for their healthcare. 

"One of the things to focus on in Brazil was rounding out the care continuum so that the hospital door wasn’t the only door in the health system," Joseph told Business Insider. "Being able to provide the right care at the right place for people, which gives to better outcomes, which gives to better cost."

So they set up an Optum — the data and analytics business within UnitedHealth — in Brazil to focus on aspects like population health, and other services that could be done without getting admitted into the hospital. 

When UnitedHealthcare Global first got to Brazil, primary care was the least used specialty within the Amil member base. 

To change that, Joseph said, the company set up health clubs and centers where members could go get check-ups and appointments for routine health concerns or vaccines. Today, it's the most-used specialty among UnitedHealthcare Global's members in Brazil. 

At the same time UnitedHealth was applying some of its own US-based programs to the Brazilian market, Joseph said she learned a lot from what was happening on the ground in the country.

"Health systems are unique, healthcare is distinctly local," Joseph said. 

For example, UnitedHealth wanted to bring chronic disease management programs it had developed in the US down to Brazil. It learned, however, that its members in Brazil didn't respond to the way UnitedHealth approached them as an insurer. But if the members were approached in a different way, say, by a doctor, they were much more willing to take part in the program. 

Ultimately, the company brought that better approach back to the US. 

UnitedHealthcare Global is now a growing business for UnitedHealth — in the first half of 2018, the business made $4.9 billion in revenue, compared to the $3.8 billion it made in the first half of 2017. 

Now UnitedHealthcare Global is in Chile, Colombia, Peru, and Portugal in addition to offering health plans to people living working outside their home country. 

Joseph said the approach the company's been taking globally has been to combine the expertise that exists at a local level with the enterprise backbone UnitedHealth can provide. 

"We have focused on creating value in each one of those markets through the combination of our local capabilities, local experience, local teams, and our enterprise core competency," Joseph said. 

See also:

• How a 29-year-old went from dropping out of an Ivy League college to leading digital strategy for America's largest health insurer
• One of America's largest healthcare companies wants to use AI to 'solve some of the most wicked problems in healthcare'

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• BlueRock Therapeutics, a biotech company looking to create cell and gene therapies in the field of regenerative medicine, just appointed former investment banker Shane Kovacs as its new CFO. 
• This comes at a time where the market is seeing more biotech IPOs than ever before. Kovacs said that the company is considering going public as early as 2019. 
• BlueRock is focusing on three areas: Parkinson's Disease, heart failure, and autoimmune disease. 
• BlueRock is looking to get its new Parkinson's treatment into human trials and is expecting to do so by the end of this year. 

BlueRock Therapeutics, a moonshot project from pharma giant Bayer and Versant Ventures, caught widespread attention when it launched in 2016. Its goal is to be the leading biotech company in cell and gene therapy for regenerative medicine. And it wants to do that by regenerating human heart and brain cells to help patients with Parkinson's Disease and heart failure. 

On Thursday, the Cambridge-based company brought on former investment banker Shane Kovacs as its new CFO, as the company prepares to raise more funding and to potentially go public in 2019. 

To date, it's raised $225 million in funding.

BlueRock is hoping to deliver a one-two punch in tackling disease by combining techniques used in both modern day cell therapy and gene therapy. To fuel this, they are creating master bank of universal stem cells – cells that can be made into any type of cell patients need from heart to brain. 

Using these cells, they can repair damaged cells in the brains of Parkinson's patients, and regenerate heart muscles in patients with heart failure.They can also tweak and correct rare genetic disorders or mutations while they're creating these new cells.

So far, the team has set its sights on three areas: neurology, cardiology, and autoimmune function.

The leading drug in BlueRock's therapeutic pipeline is its Parkinson's Disease therapy. The company recently filed an application with the FDA in order to start clinical trials on the treatment. The team expects to start dosing in human patients by the end of this year. The trial will allow the team to monitor safety and access effects. 

In the pipeline, BlueRock's cardiology program for heart failures is currently being tested in animal models, and its autoimmune program is set to undergo pre-clinical proof-of-concept studies.  

"There's tremendous growth that we're experiencing and there's a ton to do," Kovacs told Business Insider. For one, BlueRock has grown from 10 employees a year ago to 70 today, and they're expecting to grow into 200 by the end of next year. BlueRock is also looking to build out its innate manufacturing capabilities, so it can exert full control over the production process. 

"Clearly with our plan and where we're going to take the business and the platform, we're going to need access to additional capital," said Kovacs. To do this, he floated the idea of another private fundraising round, as well as the possibility of taking the company public next year.  

In 2018, there has been 38 biotech IPOs so far, raising almost $3.9 billion in total which is the highest dollar amount since 2000, according to Bloomberg. 

See also:

• A Harvard-backed drug company is trying to develop medicine to treat and prevent aging-related diseases

• A new study just found that taking aspirin doesn't necessarily help healthy older people — here's what you need to know

• A new kind of one-time treatment is revolutionizing the way we treat diseases like cancer and blindness, but not a lot of patients are using it

SEE ALSO: A Harvard-backed drug company is trying to develop medicine to treat and prevent aging-related diseases

SEE ALSO: A new study just found that taking aspirin doesn't necessarily help healthy older people — here's what you need to know

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NOW WATCH: 3 surprising ways humans are still evolving

Here is what you need to know.

Uber is reportedly in early talks to buy Deliveroo. The London-based food-delivery startup Deliveroo would be interested in selling only for a price that's "considerably higher" than its $2 billion valuation, Bloomberg says.

The brains behind a fund that's crushing the market this year share 3 stocks driving their outstanding gains. Two of the fund managers at Neuberger Berman's Small Cap Growth Fund — which has appreciated by 28% this year and is far outperforming its peers — tell Business Insider about their strategy and some of their top stock picks.

Goldman Sachs' head of stock trading is leaving. Goldman Sachs' equities chief, Paul Russo, is leaving the firm, a source familiar with the matter told Business Insider, as incoming CEO David Solomon puts together his leadership team.

Wells Fargo to cut as much as 10% of its workforce. The third-biggest US bank says it will cut as many as 26,500 jobs over the next three years.

Eventbrite spikes 56% in its debut. The ticketing and event-management company priced its initial public offering at $23, and shares ended Thursday's session at $36.29.

The cannabis craze hits Australia. Shares of the Melbourne-based medical-cannabis company Althea almost tripled in their trading debut on Australia's ASX.

A bullet train is opening that will connect Hong Kong and mainland China. The $11 billion project doesn't come without controversy, as passengers entering the station in Hong Kong will have their documents stamped by Chinese immigration officers, Reuters says.

The 10-year is nearing its highest level in over 7 years. The benchmark yield is up 1 basis point at 3.08%. A move above 3.11% will have it at its highest level since June 2011.

Stock markets around the world are higher. China's Shanghai Composite (+2.5%) led the way higher in Asia, and Britain's FTSE (+1%) is out front in Europe. The S&P 500 is set to open up 0.17% near 2,936.

US economic data flows. Markit services and manufacturing PMIs will be released at 9:45 a.m. ET.

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