More and more money is going to passive products and strategies and away from active managers - who have failed to meet the returns of the indices, passive products are by definition not as energetic - it is a strategy that trades less actively - compared to active managers.

Doug Kass

Categorized in : Money

I expect the competitive challenges to active managers like T. Rowe and Franklin to intensify in the coming years.

He monumentally overpaid for Kraft. by Doug Kass

He monumentally overpaid for Kraft.

Is it premature to ask what happens to Amazon when Jeff Bezos chooses to turn over the day-to-day running of the company he founded? his announced divorce gives me pause for thought.

I view the current underperformance in banks stocks as an important intermediate-term opportunity to acquire valuable long term investments, deutsche Bank's woes are actually a positive for U.S. money center banks that are rapidly gaining share in fixed-income trading and retail and corporate lending.

Deutsche Bank is the Sears Holdings of the global bank industry. by Doug Kass

Deutsche Bank is the Sears Holdings of the global bank industry.

Reflecting operating losses and a toxic asset book of European loans and sovereign debt, Deutsche Bank trades at only one-third of overstated shareholders equity compared with Citigroup at 90 percent of shareholders equity and JPMorgan at 1.8 times capital.

Deutsche Bank's financial and operating woes as well as those of other equally challenged EU banks and concentration on cost savings instead of business building have and will continue to inure to the benefit of the large U.S. money center banks who stampede towards gains in corporate and retail market share as well as taking share in global fixed-income trading.

The moats are not as deep and unimpenetrable as in the past. by Doug Kass

The moats are not as deep and unimpenetrable as in the past.

Consumers love it and it will be well greeted in the market - and then probably fizzle out, that a company of such a small size can get a valuation is symptomatic of the silliness ... that develops in a period of zero interest rates.

With the stocks down so big, (it) seems to be an intermediate opportunity in the group, i'm trying to stick with Exxon, Chevron, Devon, the ones with rock-solid balance sheets. I'm not buying stocks down 16 to 17 percent, the secondary and tertiary companies.