♪♪ hello, everyone and welcome to a special edition of "fast money. i'm in for jim cramer and "mad money. we have a huge lineup tonight. we'll calling it the fall re-set the five markets that have defined 2021 and how to play them into the end of the year. meme stocks, crypto, spacs and china esg, have the trades had their 15 minutes of fame or are they here to stay. we have questions and answers on each of these ahead this hour. but we'll start with the rise of the retail trader and in the so-called meme stock phenomenon.

kristina partsinevelos tells us how we got here. >> who would have thought they could rally to put game stop over 650% higher in one month. >> game stop has now doubled into two days. >> shares of game stop all over the map today. >> shares of game stop is surging after hours. >> game stop shares right now, i mean, i can't -- i don't even know what to say. >> but here we're in 2021, the age of meme investing. these stocks often become overvalued seeing drastic price increases in just a short amount of time. much like what happened to blackberry, amc and nokia this past january and well into 2021. most of had has to do with tug-of-war on reddit who bet the stock would keep rising and professional managers of wall street hedgefunds who bet game stop would crater. these short sellers proof when a stock goes down but they also

lose big when the stock goes to the moon hedge fund melvin capital losses are the most visible wound at at least 53% of the investment gone in january alone maple lane lost 45% in january short sellers were definitely hit hard. >> i'm humbled by what happened in january investors suffered significant losses >> robinhood and td ameritrade protected itself and customers citing regulatory obligations. the trend has ignited calls for tielgt tighter rules the meme stock movement may remain a fixture on wall street and so the stock market will be forced to think how individuals will use no feed trading apps and social media to up end wall street's turf. leslie >> thank you

this leads us to ourfirst question tonight is short selling dead? has the possibility of a random meme rally killed the classic long, short strategy with us now is short seller, carson block thank you for joining us i'm going to use some data to? the short answer that question which is that morgan stanley shows that the popular short positions generated the best alpha since 2010 last month. but there is a difference between hedging and what do you in terms of activist short selling. coy only think of a handful of investors willing to disclose their short positions for fear of a short squeeze after what we've seen this year as christina laid out for us. does that concern you? >> well, it is actually, the reluctance to disclose short positions is nothing new generally long short managers

have been very reluctant to disclose those positions since short selling was first institutionalized. we're a different breed because we are active short sellers. so for the point for us is to disclose the short positions as well as the rational for our shorts and as a active short sellers we're not shorting things for fundamental reasons, like game stop was a fundamentals based short. we're shorting stocks where management has misled investors or there are some other bad faith element to the narrative that investors have bought into. >> critics of short sellers say that it is wrong, that is it is unamerican to bet against a company for a company to be demised essentially. an there is a personalization of companies this year where people have mobilized on social media that seems more personal than it

has fundamental or pocket book based. what do you make of the drum beat for more regulation on short selling in particular? is that a concern of yours or do you any disclosure would be more acontinue to what you're doing right now. >> well there is a few things to unpack short selling as unamerican is a trigger for me because i think the former chairman of nicy, a few years ago when testifying before congress, his quote was short selling feels kind of icky and unamerican and this is when they are begging the chinese frauds to come over and pay listing fees and steal more americans' money so i always thought there was a very rich level of hypocrisy in that statement but let's put that to the side

so, especially when you look at what we do as active short sellers, we're out there tieing to hold people accountable who are in some cases abject mind to investors or violating the spirit of the law but staying just within the letter of the law. and i think that that bears some additional mention for a moment here because there is throughout western societies right now, a loss of faith in our institutions and i think a large part of that is because people understand that it is so easy to violate the spirit of the law while not violating the letter and thus being held accountable for it and we're really now activist short sellers, we're one of the very, very few groups that are out there trying to hold wrongdoers accountable

and unfortunately enforcement has been very -- just weak for better part of the decade. so, yeah, to me if you're going to say what we do is unamerican, then de facto you are saying scamming and guilding the lilly, that is american and i don't want to believe that but that is basically what you would be saying if you say that short selling is unamerican. >> carson, you have found yourself on the the other side of a meme stock trade and what has that been like >> some of the things that we've been short have been mini memed. and then every now and then something, a good example is the this company that we shorted back in february called xl fleet. and it is done very well for us as a short we're no longer short at the moment we covered when after the stock had gone down a decent bit and

there was a reddit starting and close to expiration, so we thought, better safe than sorry here and we covered our short turns out the stock did not squeeze up so that is one that we're -- we avoided a potential squeeze. another one that we've been short, it is somebody else's activist report but sgoc, that is semi meme stock it seems like there were maybe some unnatural forces pushing that up the past couple of weeks so yesterday they just announced a secondary offering or they filed for secondary offering but i don't know from my perspective, in the issue with melvin capital was they were so large in that short and there was so little free float available. so we tried to avoid situations, we were doing that before melvin, we really try to do that now. where we're trying to avoid

situations where there is really no float and that where our sizing would be way too big to get out of pretty quickly. >> carson, i have to ask you, do you think that the whole meme stock phenomenon as it pertains to short squeezes is a long-term thing that we will continue to see this or do you think it is cyclical like a lot of other things that we cover >> my best guess is that it is cyclical part of it -- and look, it died down some as people, as retail has gotten burned. if you were the last person in at what was it like 350 on game stop, you might not be doing this any more. so, there is that cyclicality to it also. and i think when people do go back to the office, there is going to be less retail punting of stocks because it is going to be a little bit hard tore do that in an office environment. this is basically been

especially during lockdown, it was a form of entertainment for people and for other people as well there was some desperation like some financial desperation brought on by covid that pushed them into the market but i feel like this is somewhat, it is similar in many respects to the late '90s, 2000 internet bubble when the retail, every retail punter thought he was descended from julius cesar because he was doing so well in the market and all of that eventually changed and i think that at some point that will change here too. >> well it is worth noting that this year a basket of retail favorites have been outpacing those professional fund managers but past performance is not always indicative of future performance. >> no, it is not. >> thank you so much for joining us today >> thank you. speaking of the retail

trader, gary gentzler has said such a ban is unlikely tomas petter joins us tonight. thank you very much for joining us the term payment for order flow is something that is hit into the mainstream this year in a way that i think none of us expected ott the outset of 2021 due to theories of robinhood halting trading and other companies earlier this year. for those of you out there who may be unfamiliar, payment for order flow means that this is the brokers, including interactive brokers and robinhood that generate revenue from selling the order flow to market makers who were able to execute those trades now, what is the likelihood, thomas, that you think that payment for order flow is actually banned in the united states, you're a plan who deals with a lot of numbers. can you put a number on this

likelihood >> first of all, i must creck you here integrity brokers sells less than 3% of order for their estimate we execute our sales and we charge full commission and they generally are able to get a better prize because we get institutional orders that could offset the retail order against. now, the probability, that is a tough call i think that the probability is not higher than 20%. that payment per order will be done away with because if payment for order flow were prohibited, that would incentivize market makers and brokers to merge once they merge, they have a trading department, a sales

department, and the payment is not over it is internal within the same firm and now if that happens, that sheds the -- a lot of focus on the fact that business has always been done like this on wall street for over a hundred years. the large banks have a sales department and a trading department and they just internalize the trade and it internalize the payment and nobody knows anything so nobody focuses on the issue >> so, i want to go back to your point about having the brokerage and market makers, if payment were ford flow were banned, so you're saying that a robinhood and citadel would come together in a merger. why would that he be incentivized. >> because they are doing the same thing they are doing today

but robinhood would no longer have to publish how much money they saved from citadel for the order. >> so it is basically getting around -- it is a loophole you think in the way that they would ban it. >> that is how large banks, large bank brokers operate today, right so they receive the orders from the customers, and they send it to the trading department to trade against the order. right. the trading department makes the money trading against the order and the firm internalizes the profits. so there is not an over payment that would be, except you could read in the quarterly earnings statements the so-called trading profits of the large banks and they are every quarter, they are billions of dollars, two, three, four, five, billion

dollars a quarter. suddenly in citadel and robinhood would merge, that would focus on everybody's attention on this specific issue that is been going on for years with the large banks so what could gentzler do about that he could say okay we are not going to allow any more trading against customer orders by firms or all orders have to been routed through exchanges where there is free competition that the order is subjected to. right. but i think there would be very -- it would be very difficult to swallow by the big banks. >> all right well we will see what happens. a 20% chance is certainly not a small one. but not a particularly large one either thomas, thank you for joining us we appreciate it. more recon on the retail

trader tz. where meme stock mania is taking a toll on hedge funds. head online after the show or scan the qr code on your screen to learn more. i think we'll get that xr code up soon. our special edition of "fast money" continues next. asking is cryptob■=■e? asking is cryptob■=■e? we explain after the break okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, 1e ! your sales.y vr so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business...

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welcome back a lot could help in eight months especially in the high flying crypto markets known to be volatile with double-digit swings in a single day kate rooney explains. >> bitcoin has hit some big milestones this year it is also been known for its volatility but it is reached a certain maturity this year some people even calling it boomer coin as it gains more mainstream and older audience. let's start back in january. bitcoin kicking off the year

just below $30,000 and topping $57,000 just a month later so why the excitement at the time well for one, paypal started letting its u.s. customers trade cryptocurrency directly through their apps that was seen as ushering in a more mainstream audience who might not other wise want to open a dedicated crypto trading account. tesla and micro strategy disclosed they were putting bitcoin on the their balance sheet. square had done the same thing adding to confidence that bitcoin was now a real store of value for companies and also looking a store of value for billionaires among the high-profile investors saying that they were bullish on bitcoin. they mostly described it as a hedge against inflation. but this is a very sentiment driven market and sentiment certainly turned around quickly in the spring. in may and june, bitcoin retreated back below that $40,000 level and regulation came back into focus

regulators in china clamped down on cryptocurrency companies there and shut down some of the mining operators that was right around when they unveiled their own central bank digital currency and some of the steep bitcoin losses over the past year have been caused by leverage from traders. especially out of asia i'm told that often accelerated some of the bitcoin losses and some of the exchanges have since reduced the amount of leverage from as high as 100 to one to closer to 20 to one. but still, leslie, plenty of skeptics out there that a lot of headwinds and certainty heading into last months of the year back to you. >> leverage and volatility seems to go hand in hand in many areas. so it crypto inevitable. and our next guest have embraced cryptocurrency dan doll joins us now. thank you for being here on this friday night that is kind of the key here

crypto has engaged it small into the eco-system $2 trillion in market cap. a huge part of the rerve stream for companies like coin base and robinhood both of which went public this year so how important is it to the economy right now? in other words is crypto too big to fail? >> always a pleasure being on the show so like, i think you're right. we're seeing crypto everywhere we look at square and paypal and coin base and robinhood. we're seeing crypto becoming more and more important. the way i view crypto and i think it is a little different, i view crypto as an engagement driver or enhanced for the apps. if you think about the holy grail of all of these apps, they all want to become the super app, the next neo bank we said about square, it is like buying jp morgan in 1871 so that is where they all want to be and crypto is a very, very

good engagement tool and i think that is why it is going to continue to flourish right now but, again, there is also a lot of risks not all crypto is created equal. there is bitcoin and then there is a lot of other crypto which may or may not be around in a few years. >> let's discuss that then because there are claims that bitcoin's dominance is waning recently soon to be supplanted by other cryptocurrency, namely ether. what do you make of those arguments and which cryptocurrencies do you believe have more staying power and should be the ones companies are paying attention to? >> that is a great question. look, i think whenever you're thinking about these things, i look at the thought leaders like the jack dorsey or the elon and they call about bitcoin as the currency of the internet and so the real true digital goal so if you want to make a distinction, i think it is

bitcoin and there is pretty much everything else. so i'm almost indifferent. i look at coin base and recall that they keep adding more and more cryptocurrencies and you're asking yourself, what is the true scarcity value is every -- >> i think we're having a -- >> it is truly unique. >> okay. i think you're audio is a little bet better now we had a little pocket there you said that obviously bitcoin is still dominant here but when you look at what happens with robinhood for example, doge coin was a contributor to their revenue base how would you kind of characterize these up and coming cryptocurrencies in their relative importance to a lot of the companies that you cover >> yeah, i think, look, we saw what happened with doge coin in second quarter

it is fascinating to see that. i still think that if you are bullish about robinhood, and you're thinking about the future of robinhood, it is very similar to the future of square. we're using crypto as an engagement driver to become the single money app so i really think it is one more stepping-stone to becoming a much bigger bank and offering a lot of services other than crypto so i think we have to look at it on a long-term basis it is great to see the engagement of the doge coin, but i think in a year will be something else that people will get excited about. that is how i view this. the end goal is to become the single money app and i think that is where all of these really good apps are heading towards. >> as you mentioned, it is like investing in jp morgan in 1871 i think was the year that you said for that one. dan, thank you very much for joining us >> coming up, what is with the

blank check burnout and why are hedge funds into spacs any more. we'll break down the spac scene on the the other side of this break. baaam. interne don't go anywhere.hes it. pshh, mine's so fast, no one can catch me. that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that?y 1

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blank check burnout. eve seen the surge and the slow down and now the suits well lawsuits. david faber gives us a primer on the the spac. >> the rise of the special purpose acquisition corp came sweptly. sponsored by celebrities an billionaires and pe firms an former executives and anybody else with an executive resume and a pulse. one of the year's biggest market phenomenons presented an opportunity for many prerevenue companies to fund very risky business plans spacs raised $83 billion in

2020 but in 2021, the early part of the year has seen an astounding $123 billion in proceeds while seemingly everyone had a spac in a dream, for many investors the performance of spacs after they announced and even complete their deal is more of a nightmare as many as three quarters of spaks are now trading at or below the listing price of $10 the spacout was questions when there were accounting practices in the sector. >> that brought an immediate pause. spac ipos fell from 109 in marg to just 13 in april. while the torrent of listings have declined there are still 443 companies and counting seeking a business combination how many will make it to a completing deal is uncertain

spac sponsors could make enormous profits even when the stock falls well below $10 and that rising skepticism ifs reflecting in falling prices and higher rates of redemptions. a key feature of spacs that allo allows investors to get their $10 back and that is far less cash for the companies being acquired as well the implosion for private investors that is known as pipes, that is under some pressure and brought further difficulty it is clear that spacs are not going to disappear but they may begin a steady retreat to the back water of the capital markets they once occupied leslie, back to you. >> thank you, david. as the market becomes more challenging, there is also lawsuits to contend with our next guest was an adviser to bill acman's spak, whether they should be classified as

companies or investors steven freedman joins us now steven, thank you for being here let's talk about these lawsuits. because this is gotten a lot of attention from the spac e eco-system there are 50 in the works. and it is not just about classification of a spac being a company versus an investment company which has ramifications but the litigation itself ties up a spac's ability to consummate a deal. how earth shattering is this in the market right now >> so i think there is a couple of interesting and important aspects of these litigations that has i think you mentioned cat waller is representing the board of psth which is one of the three defendants that have been currently sued and to me the interesting aspect of these cases are, first, the extreme

claim by the plaintiffs which is that these are unregistered investment companies and therefore all of the contracts that they entered into are rescindable. and the second really interesting aspect is that 50 or 60 law firms got together and wrote an open letter in which they stated that these cases have no basis in either fact or law. i think that is unprecedented. and while there are some skeptics who believe that these law firms have it in their financial interest for spacs to continue, many of the firms have signed that letter had absolutely no involvement in spacs whatsoever and there have been plenty of times in the past when law firms had it in her interest to write such a letter and they never have. so that is some commentary on the the extreme nature of the cases that have been brought and your entirely right, that the pendency of the cases and

the three spacs sued and to a lesser extent for others makes it much more difficult for the spacs to do what they're really out there to do, which is engage in a business combination that benefits this security goals. >> so you have this dynamic with the lawsuits you have the threat of additional regulation and regulation that is already taken place this year in terms of accounting and then you have what david faber was just mentioning with regard to redemptions and some skittishness surrounding pipes which complicate the ability to finance these transactions what are you hearing from clients right now? does anyone still want to raise a spac and take a crack at this? >> well, i think that one of the things that you have right now as we're talking is that you have a short period of time before labor day that is always a down time in the capital markets so i'm interesting to see how spacs trade and how they function and how much money is raised once

we've gotten past labor day. so one of the factors is no question is the labor day, pre-labor day pause. there is concern in the market place that the s.e.c. is out to get spacs. i have not seen evidence of that to me the s.e.c. is considering seriously enhanced disclosure. but that is what they should be doing and i think that that is in general sensible. and i think the s.e.c. is approach it correctly. so, my view is that spacs are going to continue to be part of the market place i think the absurd boom in spacs that took place some time ago is not going to be repeated at least not in the foreseeable future but spacs by the strong sponsors are still interesting financial -- and now the other i think very important thing that is going on and this just

happened today is that the new york stock exchange has proposed a rule change and the s.e.c. is planning to put it up for public comment in a week or so and that rule change is going to permit the existence of what bill acman has called sparks which is a different kind of acquisition company, one that is in many respects much more investor friendly than a spac and we're working on one of those sparks for pershing square right now and if that rule change is adopted and there is no assurance that it will be but it will be out for public comment, if that rule change is adapted we'll see a different kind of acquisition company. one where investors have the right to opt in to decide to put money up as opposed to the right to opt out which is to put the money up up front and then get the money returned to them if they don't like the deal

so we'll see where that goes and that could be a really important development in this area >> right something to keep an eye on there. it is spac in reverse. with the special purpose acquisition rights company that bill acman and council from yourself is proposing. thank you for joining us tonight. >> you're very welcome thank you for inviting me. >> "fast money" rush returns in just a moment. whether china is in vestable or noafr t tethe break. so stay with us.mj%■

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welcome back a big story this summer has been the china crack down

strict regulations that sent stocks running >> beijing new regulatory initiatives just keeps coming. this week chinese authorities ordered dv and other ride hailing companies to improve compensation for drivers mandated online gaming firsts like ten september restrict children to three hours of play for week and told social media accounts to shut accounts critical of the chinese economy. these are the latest of the week's worth of government restrictions that have company in everything from education and food delivery to show business and tech, scrambling to adjust the president xi jinping will address worries about rising income equality and the impact on the society national security is a big concern, leading to limited for ipos and foreign stock

exchanges. some have labe abuse or mon openlies and unfair competition and other are reining in social ills children on video games or idolizing celebrities. it is a part of a broader trend under president xi a much heavier interference by the state in the economy and the private sector that is raising concerns for a wide range of issues corporate profitability, and economic growth and the development of the high-tech sector leslie back to you. >> thank you so much so how did everyone get caught flat footed on the the china trade and how should you play it into the fall. our next guest said they offer great veem bellita, thank you for joining us today. >> thank you. >> in speaking with some institutional investors, there is this sense among some of them that china is just basicallyin

uninvestable all of the regulation uncertainty have made is such they can't touch it until the uncertainties are lifted do you agree with that thought or do you think there is opportunity still to invest in china? >> i think there is opportunity. the reality is that the regulations that we've seen in the last year or so are a catch up to tends to let businesses run and then when their ill effects in achieving the goals of the country it is then clamping down on rigs regulations. i think thisn this case they consider the capital has gone too far. but if you look at the regulations, they are aiming very clearly at issues to do with cybersecurity and data and to do with the fact that families aren't growing as much, don't have as many kids as they'd like. so if you look where the government would be on your side in terms of aiding the sector,

you have a whole host of areas where you could invest, consumer goods is an scenario anything to do with the stock mon on liftic, and that would be helpful and also there are ways to invest without investing in clps stocks. you could invest in japanese and taiwanese stocks, all sort of stocks that market in china where the growth and consumption will still grow. >> but you're still under weight chinese equity does the recent sell-off make a chinese company worth the risk or do you think they need to come down a bit more before you are interested in increasing your portfolio and your exposure >> so we have very strict criteria we look for good companies and where management has shown a good track record of reinvesting capital and the most important thing is that managements interests are aligned with ours. in the case of china, when there

is so much regulatory change going on and i don't think it is over yet, it is very difficult to ascertain that line of interest is there. with china particularly, with the soe taking up a big chunk of the index, it makes sense to underweight the market because a big chunk are soes, and they are there to carry out government policy. >> that is an interesting point that you make there. given that about a third of u.s. henl funds had exposure to adrs at the end of the second quarter, do you think that the hedge fund community did not see what was coming with regard to regulation do you think they should have known given your comments with regard to the chinese companies and the relationship with the government, that they should have phone what was coming and maybe paired back exposure beforehand >> you know, it is really difficult to say because many of the companies that listed in the u.s. were particularly

attractive and perhaps maybe not so much for the hedge funds but for investors with easy access to the chinese market, they look attractive but the hedge funds, maybe they should h should have known better i can't speak how people look at deciding what to invest in if you were like us, we suffered for many years because we we are concerned about the risk to have made up the difference now because of the decline in the adr is helping us but i wouldn't guess that it wasn't a measured, considered decision to invest in those adrs >> it certainly requires a strong stomach to say the least. bellita, thank you very much for joining us tonight. >> thank you. retailers are bullish on china loading up on alibaba. scan that qr code on your screen to learn why we close out this special with esg investing next does trade get the green light for the rest of year

the carlyle group's head of local impact is coming up. local impact is coming up. don't go in the race to succeed, does somebody always have to fail? let's give everybody a fair shot. because when that happens, we've all made it. ♪

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welcome back three little letters now translated to trillions of dollars in assets. i'm talking about esg. they moved from a want to have to a need to have. let's bring in megab start at carlyle which eefr oversees $275 billion in capital. it is great to have you. esg went from this nichy area

and metrics and now it is pervasive. every asset manager that i speak with has some kind of thought or strategy with regard to esg. what do you think is the impetuous behind esg becoming so mainstream this year and what is that say about its future in the asset management industry? >> thanks for having me, leslie. and it is true esg has been around for a long time but it had an explosion in the past year. i think we're entering the teenage growth spurt and there are i lot of reasons for that but fundamentally the world is changing you're talking about hurricane ida. we're seeing the physical impact of things like climate change. and we're seeing that the market is starting to value in a host of competencies or an environmental and social performance. and it is early based, people dismissed it as feel good finance or fuzzy math. how you could possibly make money thinking about things about environmental footprint or engagement that is shifted. the market is understanding that

companies that are thinking about engaging in and employing top talent, they're thinking about climate and diverse work performance and they are performing better and they're saying esg leaders are starting to be priced in. how do we invest in companies across the curve and help them move up it because that in itself could help you exit into higher valuations and lower cost of capital. >> historically some have argues that esg is a bull market phenomenon if the financials are doing well and you have all of the tail winds you could focus on esg but what happens when the market turns or things get a little tighter, a little more difficult in the economy does esg still remain a focus for a lot of skeb executives in the asset managers who put the dollars behind these companies. >> i think covid was a great test case for that when we kicked off the beginning of 2020, everyone was talking about climate change and then a

global pandemic hit. and i had a couple of peek ask me in whispers, does this mean that esg is in the backseat now and we saw the exact opposite. it really accelerated a focus on esg. and what we saw was that our companies at carlyle that had management teams that were forward-thinking that could already plan in a resilient or agile way or remote work, they were able to weather the storm so i think esgs are a hallmark for management excellence. it is companies that are forward-thinking and see what is coming at them and at a time when esg took a backseat, i think covid has accelerated the focus on that. >> private investors tackle esg from a different framework than public you at carlyle look at things more from the private lens it is harder to private ones to not fit the traditional esg framework and criteria how do you grapple that as you look at the portfolio and

talking to lp's who are all interested in making the portfolio more esg how do you square those ideas if you're invested in say oil and gas companies but then trying also to put your money to work in renewables as well? >> but there in lies the opportunity. private capital is interesting because we tend to have a longer hold period. a lot of times we make majority stakes and we have the capital and the expertise and time to think about esg as a change thesis versus a static state so energy is a great example we spent a ton of time thinking about climate change in the energy transition and the energy transition is just that. a transition and so we're working with companies across the esg m maturity curve to help them think about the energy transition one quick example, we have a global energy company called neptune in our portfolio they have one of the lowest carbon intensities in the industry they're going to the mat on

thinking about their positioning and they've done things like invest in carbon capture and sequestration and hydrogen products and we partnered with the environmental and they're using drones to run pilots to measure and reduce methane leakage to get to their goal of zero emissions by 2030 that is possible because we're taking a focused partnership to help move the needle on the energy transition. >> that is fascinating so it is not necessarily about putting companies in good buckets and bad buckets, it is working to transform their own carbon foot print. now you're also tackling esg on the the debt side and pricing and credit financing specificallily tied to esg metrics. how is that working out and what happens if you have a company that may be a risky borrower but has a lot of women on the the board? >> it is one of the most interesting parts of esg how do we keep using the

different tools of private investing creatively to driver convergence between profitability and environmental and social outcomes. we just passed $10 billion in esg linked debt across our firm. of two quick examples one of the portfolio company level and we recently bought a company called funder from seamans naft year and they're a leader in mechanical drive technology. as part of the transaction we did 1.3 billion of debt and the cost of the debt was linked to flender hitting targets related to deploying wind energy more wind energy they deploy, the cheaper the debt gets. so $4.1 billion facility was the largest esg linked facility in the u.s. squarely focused on diversity. we linked the cost of our debt at carlyle to our target of having 30% diverse for directors across our majority owned companies within two years of

ownership. we have really compelling esg so that those that diversity leads to belter financial out comes. >> it is remarkable. megan star, thank you for being here tonight have a nice weekend. and that does it for here on the the fall re-set in a special edition of "fast money." if you missed any part of the show head online to cnbc.com/pro everybody have a great long weekend. eamon javers filled in for the news that starts right now. >> i'm in for shepard smith. this is the news on cnbc >> the death toll rising in the northeast. several people still missing and one river has yet to crest >> oh, my god. >> plus, new video emerges what it was like surviving the tornado. blame game >> here is what we did not know. literally shocking and unprecedented rainfall and none