Doug Kass

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Doug Kass is the president of Seabreeze Partners Management Inc.Expand

Until 1996, he was senior portfolio manager at Omega Advisors, a $6 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody. Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box."Collapse

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Doug Kass

 | May 6, 2016 | 10:34 AM EDT
Let's wrap up my take on Wall Street's major sectors with a look at a few more market segments. (You can read my earlier thoughts on the market's…
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Doug Kass

 | May 6, 2016 | 9:55 AM EDT
Interest rates. Banks are rate-sensitive animals. With balance-sheet imbalances of rate-sensitive vs. liability-sensitive assets, all banks are suffering from our current low-interest-rate environment. They would benefit from higher rates and a more positive slope to the yield curve -- but while I believe interest rates are near cycle lows, I don't expect any meaningful pick-up in rates for some time. I don't expect the yield curve to resume a more normal slope any time soon, either. Politics. Donald Trump has out-trumped all 16 of his rivals to become the presumptive Republican presidential nominee, while it the odds of a Hillary Clinton Democratic nomination are rising. These developments produce a less-favorable political backdrop for bank stocks. Profit woes. Bank profits will continue to come under pressure and seem unlikely to meet 2016 consensus expectations. Given the above, I sold my bank longs into the sector's February-to-April rally, and I recently shorted the Financial Select Sector SPDR ETF (XLF) as well. I'm also shorting Metlife (MET) and Lincoln National (LNC), as I believe that life insurers face reinvestment challenges. (This week's much-weaker-than-expected earnings reports from insurers only confirmed my thesis, so I boosted my MET and LNC shorts.) I remain long on Oaktree Capital (OAK) and Hartford Financial (HIG) -- but as noted previously, I'm short on Berkshire Hathaway. The Times They are a Changin' for Warren Buffett's firm. My overall sentiment: Negative (down from a previous Positive) Health Care/Biotech The political battle over health care intensified over the past few months as Democratic and Republican presidential aspirants vied for attention and popularity. And if I'm correct in predicting a probable Hillary Clinton presidency (she's currently the general-election frontrunner), the industry's
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Doug Kass

 | May 6, 2016 | 9:12 AM EDT
The world's market and global economies are maturing. There are still Many Peaks I See. An important and major stock-market top began to develop in May 2015, although tops ar
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Doug Kass

 | May 6, 2016 | 8:35 AM EDT
As most subscribers know, I bred, raced and drove harness horses in the 1980s before a devastating 1990 accident in which I broke both legs, nine ribs…
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Doug Kass

 | May 6, 2016 | 7:45 AM EDT
I have a trip that's come up at the last minute, so I'll be traveling most of the morning. However, I still plan to post sporadically. Coming up: The…
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Doug Kass

 | May 5, 2016 | 4:33 PM EDT
"Where is the moment when we needed the most? You kick up the leaves, and the magic is lost They tell me your blue sky's faded…
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Doug Kass

 | May 5, 2016 | 3:53 PM EDT
The U.S. dollar weakened meaningfully in the trading day. The price of crude oil rose by 35 cents a barrel to $44.13. Nat gas dropped by six cents. Gold was essentially flat at $1,274. Agricultural commodities = schmeissburger. Wheat -9.75, corn -3.50 and soybean -21.75. Lumber +3.40. Bonds rose in price, and were lower in yield. The 10- and 30-year note and bond moved down by 2.5 basis points, yielding 1.75% and 2.61%, respectively. Municipals were well-bid, and closed-end municipal bond funds continue to float higher to new 2016 highs. I had permature termination in this space late last year! High-yield debt was flat, but Blackstone/GSO Strategic Credit Fund (BGB) was up three pennies to $14. Banks stocks were disappointing and continued a multiday selloff. I remain short Financial Select Sector SPDR ETF (XLF) at good prices. Brokerages were lower by about one-half percent. I covered my Goldman Sachs (GS) and Morgan Stanley (MS) shorts earlier in the week. Life insurance, my favored short sector because of reduced reinvestment opportunities in a low- rate setting got whacked. Lincoln National (LNC) was down $2 and MetLife (MET) a beaner. Hartford Financial Services Group (HIG) was conspicuously higher, up 15 cents. I like the pair trade long HIG/short MET-LNC. Energy stocks were unchanged. Old tech traded flat, save IBM (IBM), up $2. Retail got hit on L Brands' (LB) bad comps and mall concerns. Nordstrom (JWN), a short is my only holding in retail. Agricultural equipment, on the heels of a Caterpillar (CAT) diss from Greenlight's David Einhorn, were down measurably. Autos, despite a plug of General Motors (GM) by Einhorn at the Sohn Conference, were flat. Consumer nondurables fell as our currency strengthened. Disney (DIS) led media, up $1.10. Biotech is still drek. Speculative biotech rolling over. (T)FANG was weaker, led by Amazon (AMZN), down $11, and TSLA, down $10. I added to the latter short today. NOSH was yuck. In individual names, Mr. Market gave yesterday but took away today in Twitter (TWTR) and Potash (POT) -- I wouldn't bottom fish, as I have mentioned recently. The Mighty OAK -- Oaktree Capital Group -- was flat, and DuPont (DD) was down 55 cents. Apple continues to trade rottenly, down $1.15. Apple needs a visionary, a house hippie, in my view. Here are some great posts on Real Money Pro today: Jim "El Capitan" Cramer on what's working now.  Tim "Not Phil or Judy" Collins goes Texas on us in his discussion of a controversial Freeport-McMoRan (FCX)!  Robert "Not Rita" Moreno on CAT's technicals. Another controversial one in which Jimmy and I hold to differing viewpoints.  James Passeri on a great review of the Ira Sohn Conference -- a must read!  Chris Laudani rains on Macy's (M) parade
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Doug Kass

 | May 5, 2016 | 3:47 PM EDT
$550 million to buy market on close.
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Doug Kass

 | May 5, 2016 | 3:00 PM EDT
Watch the stock price of Sears Holdings (SHLD). It's down another 82 cents to $13.90. I continue to be most concerned about this…
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Doug Kass

 | May 5, 2016 | 2:19 PM EDT
I continue to like the long Hartford Financial Services Group (HIG)/short Lincoln National…

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