Doug Kass Is Bearish On Asset Managers (BEN, TROW, AB, FII, JNS)

Doug Kass said on CNBC's Fast Money that he plans to increase his short position in asset managers. He named a few factors that could hurt asset managers, such as weak inflows due to economic factors, less matching by corporations, a tired market and a SEC regulation that will crack down on so-called 12b-1 fee. The SEC's rule will have the biggest impact on their earnings, as 12b-1 fees total over $13 billion a year.

The stocks the he wants to short are: Franklin Resources, Inc. (NYSE: BEN), T. Rowe Price Group, Inc.
(NASDAQ: TROW), AllianceBernstein Holding LP (NYSE: AB), Federated Investors, Inc. (NYSE: FII) and Janus Capital Group Inc. (NYSE: JNS).

Gary Kaminsky commented that he agrees with Doug Kass, as he expects to see a drop in revenue for asset managers and a big margin pressure.