ascendere associates llc innovative long/short equity research · 2017. 4. 2. · gw...

Ascendere Associates LLC [email protected] J. Stephen Castellano March 31, 2017

Ascendere Associates LLC Innovative Long/Short Equity Research

Model Portfolio Monthly Update: March 31, 2017 There are limitations inherent in our theoretical model results, particularly with the fact that such results do not represent actual trading and they may not reflect the impact material economic and market factors might have had on our decision making if we were actually managing client money. Please see additional disclaimers and disclosures at the back of this report. We highlight stocks that demonstrate solid growth at a reasonable price (GARP). Stocks selected for our model portfolio strategies all rank highly for the following metrics, with an emphasis on proxies for cash flow growth and ROIC:

• Relative Value • Operating Momentum • Analyst Revision Momentum • Fundamental Quality

Pages 2-5 contain brief commentary and highlights of a few stocks that seem particularly attractive. Page 6 contains rebalancing actions for our long-only model portfolio. Page 7 contains rebalancing actions for our short-only model portfolio. Target and stop prices, as well as updated return data, to be provided in our daily reports that will follow.

http://www.ascenderellc.com/ascendere-associates-llc/


Notes: Readers that would like to follow our daily price target changes can follow us on our Seeking Alpha instablog or on Tumblr. This report is a follow-up to our March 31, 2017 abbreviated report and last month’s full report.

Commentary The theoretical Core Long Model, composed of high quality stocks, increased +0.06% in March 2017 versus a -0.01% decline in the S&P 500. Stocks in the theoretical Core Short Model, composed of low-quality stocks, declined by -2.10% for the equivalent short sale gain of +2.10%. The theoretical Core Long/Short Model increased by +2.17% for the month (+0.06% + 2.10% = 2.17%). The theoretical Opportunistic long and short models shared identical stock weightings this month and performed in line with the Core models. (Both the theoretical “Core” and “Opportunistic” portfolios use the same basket of stocks but the Opportunistic model moves to 70% and 100% cash allocations during periods of high volatility or when portfolio return targets are met.) The best model and worst portfolio stocks for March 2017 The best performing stock in the theoretical long model was Cirrus Logic Inc. (CRUS), up +12.22% for the month. The worst performing was Cliff Natural Resources Inc. (CLF), down -22.98%. In the theoretical short model, the best performing stock was Tesaro, Inc. (TSRO), down -18.91% (for the equivalent +18.91% short sale gain) through March 15, 2017 – a day after the stock reached its short sale price target. TSRO finished the month down -18.32%. The worst performing short idea was Tribune Media Company (TRCO), up +7.35% (for the equivalent -7.35% short sale loss) through March 2, 2017 – a day after it reached its stop loss target. TRCO finished the month up +8.66%. Performance of our favorite long idea in March 2017 Our favorite long idea in March was the aforementioned Cirrus Logic, Inc. (CRUS) – the best performing stock in the long model portfolio. Notes Except for extremely unusual circumstances, our long model portfolios are composed of high-quality stocks and our short model portfolios are composed of low-quality stocks.

http://seekingalpha.com/author/stephen-castellano/instablog

http://jstephencastellano.tumblr.com/post/131560500977/review-of-the-4-day-low-quality-stock-long

https://seekingalpha.com/instablog/528627-stephen-castellano/4974733-35-stocks-april-2017-abbreviated-report

https://seekingalpha.com/article/4050940-36-stocks-march-2017


As a simple quantitative model based on fundamental rankings, the portfolio models do not take into account rumors or pending M&A transactions. The models are created just prior to the market close each month, but we usually do not publish until after the close due to time constraints. Looking ahead to April 2017 Long Rebalancing Actions As noted in our abbreviated report, just prior to the close as of March 31, 2017, we assume 8 stocks have left the long-only model, 7 have been added, and 28 positions have been rebalanced. This 35-stock theoretical long model assumes a 2.86% weight for each stock. The long model portfolios are composed of high-quality stocks Short Sale Rebalancing Actions Just prior to the March 31, 2017 close, we assume that 11 stocks have left the theoretical short-sale model portfolios, 11 have been added, and 20 stocks have been rebalanced. This 31-stock theoretical model portfolio assumes an equal 3.23% weight for each stock. This short sale model is composed of low-quality stocks, and only tends to work well during periods of high uncertainty or volatility in the market. Low-quality stocks do tend to outperform high-quality stocks during market rallies as the market prices in expectations for a sharp recovery in fundamentals.

https://seekingalpha.com/instablog/528627-stephen-castellano/4974733-35-stocks-april-2017-abbreviated-report


Our favorite long idea for April 2017 Our favorite long idea this month is Stanley Black & Decker. The stock shares the same ranking profile of some other stocks that have done very well for an extended period of time. Improvements in ROIC looks like it may break out above its recent trend later this year. Anecdotally, the housing market continues to improve which may support continued positive consensus estimate revisions.

Ranking Data as of March 31, 2017

Stanley Black & Decker, Inc. IndustrialsNYSE:SWJ Industrial Machinery

Ascendere Ranking Price 04/01/17 25.25 Cash (1,132) EV/LTM EBITDA 12.3 Shares 153 Debt 3,875 Price/Book 3.2 Market Cap 20,280 Other 7

5 = Best Rank Enterprise Value 23,029 Relative Value 3Operating Momentum 4 CY1 Consensus EPS Est. 7.08$ CY1 PE 3.6 Total Capital 10,248$ Analyst Revisions Mom 5 CY2 Consensus EPS Est. 7.90$ CY2 PE 3.2 Debt/Capital 27%Fundamental Quality 4 Latest Annualized Dividend 2.32$ Div Yield 1.7% Debt/Enterprise Value 17%

Source: Capital IQ data and estimates, and Ascendere Associates LLC data and estimates.

NYSE:SWJ LTM+4Q LTM+3Q LTM +2Q LTM +1Q Last LTM LTM-1 LTM-2 LTM -3 LTM -4NOPLAT 1,515 1,440 1,363 1,357 1,339 1,394 1,383 1,345 1,319 Economic Charge 929 925 922 918 918 831 793 822 888 Economic Profit 586 515 441 438 422 563 590 523 431 Y/Y change 13.7% 16.7% 0.6% 3.9% -25.1% -4.5% 12.9% 21.2% -15.7%

NOPLAT 1,515 1,440 1,363 1,357 1,339 1,394 1,383 1,345 1,319 Operating Capital 12,000 11,948 11,905 11,864 11,854 12,116 11,998 12,180 11,980 ROIC (NOPLAT / Operating Capital) 12.6% 12.1% 11.4% 11.4% 11.3% 11.5% 11.5% 11.0% 11.0%

NOPLAT 1,515 1,440 1,363 1,357 1,339 1,394 1,383 1,345 1,319 5 Qtr Average Operating Capital 11,929 11,893 11,935 11,958 12,026 12,220 12,372 12,551 12,659 ROIC (NOPLAT / Operating Capital) 12.7% 12.1% 11.4% 11.3% 11.1% 11.4% 11.2% 10.7% 10.4%Source: Ascendere Associates assumptions and estimates, and S&P Capital IQ data and consensus estimates.


Long running advice regarding the use of our model portfolio report Wayne Gretzky said it best – “skate to where the puck is going to be, not where it has been.” Quantitative screens like the one in this report show where a stock has been and assume the trajectory is fixed. Of course, this is not always the case. The best investors will use this model portfolio as guidance, and not the end all. At the same time, the model does well enough on its own, often beating the indices with ease (though not this past month). With a little effort, we hope that active fundamental portfolio managers will do even better.


Long Model Portfolio -- Rebalancing Actions

3/31/2017 Rebalancing

Core and Opportunistic Long Portfolio:35 stocks in the model portfolio = 2.86% weight per position

Close Position Hold/Rebalance Open PositionLCI Industries LCII Burlington Stores, Inc. BURL H&R Block, Inc. HRBD.R. Horton, Inc. DHI Apollo Global Management, LLCAPO Meredith Corporation MDPTD Ameritrade Holding CorporatioAMTD Essent Group Ltd. ESNT Evercore Partners Inc. EVRDelta Air Lines, Inc. DAL Discover Financial Services DFS Raymond James Financial, Inc. RJFCirrus Logic, Inc. CRUS The Blackstone Group L.P. BX Dycom Industries, Inc. DYMaxim Integrated Products, Inc. MXIM Bank of Hawaii Corporation BOH Stanley Black & Decker, Inc. SWJCliffs Natural Resources Inc. CLF Home Bancshares, Inc. (Conwa HOMB Logitech International SA LOGIHost Hotels & Resorts, Inc. HST Banco Santander, S.A. SAN

East West Bancorp, Inc. EWBCCathay General Bancorp CATYHuntington Ingalls Industries, InHIIMasTec, Inc. MTZManpowerGroup Inc. MANCopart, Inc. CPRTHP Inc. HPQApplied Materials, Inc. AMATIntuit Inc. INTUNCR Corporation NCRTeradyne, Inc. TERCorning Incorporated GLWFacebook, Inc. FBTrinseo S.A. TSESteel Dynamics, Inc. STLDEagle Materials Inc. EXPNucor Corporation NUECoreCivic, Inc. CXWRLJ Lodging Trust RLJ

Source: Ascendere Associates LLC LaSalle Hotel Properties LHO


Short Model Portfolio -- Rebalancing Actions When the market anticipates an improving economy from low price levels, low-quality stocks will at times out-perform high-quality stocks as the expected improvements in fundamentals are discounted from a relatively more depressed price level.

3/31/2017 Rebalancing

Core and Opportunistic Short Portfolio:31 stocks in the model portfolio = 3.23% weight per position

Close Position Hold/Rebalance Open Short SaleWolverine World Wide, Inc. WWW Helen of Troy Limited HELE Ford Motor Company FCarMax Inc. KMX Mattel, Inc. MAT Kite Pharma, Inc. KITETribune Media Company TRCO Under Armour, Inc. UA Alexion Pharmaceuticals, Inc. ALXNPBF Energy Inc. PBF Hess Corporation HES ACADIA Pharmaceuticals Inc. ACADSM Energy Company SM Golar LNG Limited GLNG Clovis Oncology, Inc. CLVSHilltop Holdings Inc. HTH Willis Towers Watson Public Li WLTW CEB Inc. CEBGW Pharmaceuticals plc GWPH CIT Group Inc. CIT ZTO Express (Cayman) Inc. ZTOTesaro, Inc. TSRO American International Group, IAIG Sensata Technologies Holding N.V. STStericycle, Inc. SRCL bluebird bio, Inc. BLUE Nutanix, Inc. NTNXCaterpillar Inc. CAT Ultragenyx Pharmaceutical Inc RARE NetScout Systems, Inc. NTCTWorkday, Inc. WDAY Neurocrine Biosciences, Inc. NBIX Autodesk, Inc. ADSK

Jacobs Engineering Group Inc. JECFlowserve Corporation FLSTerex Corporation TEXIntegrated Device Technology, IDTIAlliance Data Systems CorporaADSQorvo, Inc. QRVOSummit Materials, Inc. SUMPotash Corporation of Saskatch POT

Source: Ascendere Associates LLC Weyerhaeuser Co. WY


Return Data

Core & Opportunistic Long Model MTD Theoretical 2/28/2017 to 3/31/2017

Target/ Date+1 Sector Company Ticker 2/28/2017 3/31/2017 Performance Stop Date Sell Price ReturnInformation Technology Cirrus Logic Inc. CRUS 54.08 60.69 12.22%Financials Banco Santander, S.A. SAN 5.41 6.07 12.20% 3/23/2017 6.13$ 13.31%Information Technology Teradyne Inc. TER 28.44 31.10 9.35% 3/16/2017 30.83$ 8.40%Consumer Discretionary Burlington Stores, Inc. BURL 89.01 97.29 9.30%Information Technology Applied Materials Inc. AMAT 36.22 38.90 7.40% 3/17/2017 39.57$ 9.25%Financials Apollo Global Management, LLC APO 22.74 24.32 6.95%Industrials ManpowerGroup Inc. MAN 97.04 102.57 5.70%Financials Host Hotels & Resorts Inc. HST 17.79 18.66 4.88%Information Technology Facebook, Inc. FB 135.54 142.05 4.80%Real Estate RLJ Lodging Trust RLJ 22.43 23.51 4.79%Industrials Copart Inc. CPRT 59.14 61.93 4.72%Consumer Discretionary DR Horton Inc. DHI 32.00 33.31 4.09%Financials Essent Group Ltd. ESNT 34.81 36.17 3.91%Information Technology HP Inc. HPQ 17.24 17.88 3.73%Information Technology MasTec Inc. MTZ 39.25 40.05 2.04%Financials LaSalle Hotel Properties LHO 28.44 28.95 1.78%Information Technology Maxim Integrated Products Inc. MXIM 44.30 44.96 1.49%Financials The Blackstone Group BX 29.54 29.70 0.54%Financials TD AMERITRADE Holding Corporation AMTD 39.10 38.86 -0.61%Information Technology Corning Inc. GLW 27.61 27.00 -2.21%Financials Bank of Hawaii Corporation BOH 84.46 82.36 -2.49%Materials Trinseo S.A. TSE 69.15 67.10 -2.96%Financials Home Bancshares, Inc. (Conway, AR) HOMB 28.14 27.07 -3.80%Financials Discover Financial Services DFS 71.14 68.39 -3.87%Materials Nucor Corp. NUE 62.18 59.72 -3.95%Financials Cathay General Bancorp CATY 39.28 37.68 -4.07%Materials Steel Dynamics Inc. STLD 36.44 34.76 -4.60%Financials East West Bancorp Inc. EWBC 54.12 51.61 -4.64%Information Technology NCR Corp. NCR 48.07 45.68 -4.97%Real Estate CoreCivic, Inc. CXW 33.25 31.42 -5.51%Materials Eagle Materials Inc. EXP 103.71 97.14 -6.33%Consumer Discretionary LCI Industries LCII 107.22 99.80 -6.92%Information Technology Intuit Inc. INTU 125.44 115.99 -7.53%Industrials Delta Air Lines Inc. DAL 49.93 45.96 -7.95%Industrials Huntington Ingalls Industries, Inc. HII 217.90 200.24 -8.10%Materials Cliffs Natural Resources Inc. CLF 10.66 8.21 -22.98%

Ascendere Associates LLC


Core & Opportunistic Short Model MTD ts hit target 8/4/2011 for 14.84% gain2/28/2017 to 3/31/2017

Target/ Date+1 Sector Company Ticker 2/28/2017 3/31/2017 Performance Stop Date Sell Price ReturnHealthcare Ultragenyx Pharmaceutical Inc. RARE 85.08 67.78 -20.33% 3/23/2017 70.32$ -17.35%Healthcare Tesaro, Inc. TSRO 188.37 153.87 -18.32% 3/14/2017 152.75$ -18.91%Energy PBF Energy Inc. PBF 24.49 22.17 -9.47% 3/17/2017 21.71$ -11.35%Consumer Discretionary CarMax Inc. KMX 64.54 59.22 -8.24% 3/21/2017 60.07$ -6.93%Energy Hess Corporation HES 51.17 48.21 -5.78% 3/10/2017 47.79$ -6.60%Industrials Caterpillar Inc. CAT 96.66 92.76 -4.03%Consumer Discretionary Helen of Troy Limited HELE 97.70 94.20 -3.58%Financials Hilltop Holdings Inc. HTH 28.38 27.47 -3.21% 3/22/2017 26.46$ -6.77%Healthcare GW Pharmaceuticals plc GWPH 124.78 120.94 -3.08%Energy SM Energy Company SM 24.65 24.02 -2.56% 3/14/2017 22.20$ -9.94%Industrials Jacobs Engineering Group, Inc. JEC 56.41 55.28 -2.00%Healthcare Neurocrine Biosciences, Inc. NBIX 44.16 43.30 -1.95%Financials American International Group, Inc. AIG 63.60 62.43 -1.83%Materials Potash Corp. of Saskatchewan, Inc. POT 17.33 17.08 -1.43%Consumer Discretionary Under Armour, Inc. UA 18.56 18.30 -1.40%Information Technology Integrated Device Technology Inc. IDTI 23.91 23.67 -1.00%Consumer Discretionary Wolverine World Wide Inc. WWW 25.11 24.97 -0.56%Consumer Discretionary Mattel Inc. MAT 25.73 25.61 -0.47%Industrials Stericycle Inc. SRCL 82.88 82.89 0.01%Financials CIT Group, Inc. CIT 42.90 42.93 0.07%Information Technology Workday, Inc. WDAY 82.93 83.28 0.42%Industrials Terex Corp. TEX 31.16 31.40 0.77%Materials Weyerhaeuser Co. WY 33.41 33.98 1.71%Financials Willis Towers Watson Public Limited CoWLTW 127.91 130.89 2.33%Energy Golar LNG Ltd. GLNG 27.26 27.93 2.46%Information Technology Alliance Data Systems Corporation ADS 242.98 249.00 2.48%Materials Summit Materials, Inc. SUM 23.89 24.71 3.43%Healthcare bluebird bio, Inc. BLUE 87.65 90.90 3.71%Information Technology Qorvo, Inc. QRVO 66.10 68.56 3.72%Industrials Flowserve Corp. FLS 46.26 48.42 4.68%Consumer Discretionary Tribune Media Company TRCO 34.30 37.27 8.66% 3/1/2017 36.82$ 7.35%

Ascendere Associates LLC


* Return figures are calculated using cumulative simple returns. This table represents returns of several theoretical portfolios that do not assume any costs. This table is not to be construed as advertising for any investment service. Real portfolios that attempt to exactly replicate these theoretical strategies will generate lower returns relative to these models due to slippage, transaction costs, tax expenses and other costs. There are limitations inherent in our theoretical results, particularly with the fact that such results do not represent actual trading and they may not reflect the impact material economic and market factors might have had on our decision making if we were actually managing client money. We do our best to provide accurate information, but do not guarantee this. Please see additional disclosures and disclaimers.

Theoretical Model Portfolio* 03/31/17 MTD YTDSince

03/31/09 SharpeSimple Returns (No Compounding)

Stock Targets Core ModelLong -0.44% 0.06% 21.37% 181.5% 1.01 Short 0.12% -2.10% 5.11% 69.4% 0.42 Core Long/Short -0.56% 2.17% 16.26% 112.1% 0.89

Stock Targets and Opportunistic ModelPortfolio Targets Long -0.44% 0.06% 9.00% 156.2% 1.12

Short 0.00% -2.10% -2.57% -0.1% (0.01) Opportunistic Long/Short -0.44% 2.17% 11.57% 156.4% 1.29

Stock Targets and Opportunistic Model IIIPortfolio Targets Long Stocks -0.44% 0.06% 9.00% 156.2% 1.12

Long Inverse ETF ^SH 0.00% -0.14% -9.49% -82.5% (0.77) Opportunistic Long/Short III -0.44% -0.08% -0.49% 73.8% 0.72

S&P 500 Index -0.60% -0.01% 5.44% 118.64% 0.93


Core Opportunistic"Dollar

Neutral" 1"Dollar

Neutral" 2

Inception March 31, 2009Long , Stock

Targets

Long, Stock and Portfolio Targets

Long/Short, Stock Targets and Portfolio

Targets

Long, Stock and Portfolio

Targets / Long ^SH ETF S&P 500

3/31/2017 Theoretical Theoretical Theoretical TheoreticalSimple ReturnsToday -0.07% -0.07% -0.15% 0.16% -0.23%MTD 0.06% 0.06% 2.17% -0.08% -0.01%YTD 21.37% 9.00% 11.57% -0.49% 5.44%Cumulative from 3/31/2009 181.46% 156.22% 156.36% 73.76% 118.64%

Absolute RiskDaily Average 0.09% 0.08% 0.08% 0.04% 0.06%Daily Range 16.86% 15.84% 11.84% 12.00% 11.40%Daily Standard Deviation 1.40% 1.09% 0.95% 0.80% 1.00%Daily Return/Standard Deviation 6.43% 7.12% 8.17% 4.59% 5.90%

Average 90-Day T-bill 1.19% 1.19% 1.19% 1.19% 1.19% Annualized Daily Returns 22.69% 19.54% 19.55% 9.22% 14.84% Annualized Standard Deviation 22.2% 17.3% 15.1% 12.7% 15.8%Sharpe Ratio 0.97 1.06 1.22 0.63 0.86

Percentage Down Days 45.4% 35.6% 43.1% 45.1% 45.3%Average Daily Downside Value -0.99% -0.87% -0.65% -0.53% -0.71%Daily Downside Deviation -1.05% -0.89% -0.62% -0.56% -0.76%Daily VAR of 1000 at 95% Conf -22 -17 -15 -13 -16

Benchmark Relative RiskCorrelation 0.90 0.70 (0.05) 0.05R-Squared 0.82 0.49 0.00 0.00Daily Tracking Error 0.66% 0.81% 1.41% 1.25%

RegressionBeta 1.27 0.76 -0.04 0.04Daily Alpha 0.031% 0.019% 0.019% -0.022%Jensen's Daily Alpha 0.040% 0.014% -0.001% -0.001%

Trading Days 2015 2015 2015 2015*Returns calculated by the simple return method (not compounded).

* Portfolio models are theoretical and assume no costs.

* Data collected in real time since 3/31/2009

Source: Ascendere Associates LLC


DISCLOSURES Ascendere is in the business of providing equity research and related consulting services to investors and their advisors. The equity research it provides includes basic quantitative model portfolios and more detailed fundamental research with respect to individual stocks. In addition, the firm manages stock portfolios for itself and clients. Ascendere does not rate stocks on any scale, but does offer individual stock commentary and valuation opinions. With regard to Ascendere's portfolio strategies, "long" or "high-quality" baskets should generally be considered buys, unless otherwise noted. Stocks in our "short" or "low-quality" baskets should generally be considered sells, unless otherwise noted. While exceptions may occasionally occur, typically stocks in the high-quality basket are expected to outperform the S&P 500 over a month's time and stocks in the low-quality basket are expected to underperform. A more relevant benchmark would comprise of all stocks and ADRs that trade on major U.S. stock exchanges with a market cap above $2 billion. Ascendere adheres to professional standards and abides by codes of ethics that put the interests of clients ahead of its own. The following are specific disclosures made by Ascendere: 1) Ascendere may have a financial interest in the companies referred to in this report ("the Companies"). The research analyst covering the Companies and members of the analyst's immediate family have a financial interest in one or more of the Companies. 2) Ascendere generates revenue from research subscription revenue and portfolio management fees. At any given time it may be long or short any of the Companies. 3) Ascendere does not make a market in the securities of any of the Companies. 4) Ascendere has not received compensation from the Companies. 5) Ascendere has not managed or co-managed a public offering for any of the Companies. 6) Neither Ascendere nor any of its officers or any family member of the covering analyst serve as an officer, director or advisory board member of any of the Companies. 7) Neither Ascendere nor any of its officers or any family member of the covering analyst beneficially own 1% or more of any class of securities of any of the Companies. DISCLAIMERS This report is intended for informational purposes only and does not constitute a recommendation, or an offer, to buy or sell any securities or related financial instruments. The report is not intended to be in furtherance of the specific investment objectives, financial situation, or particular needs of any individual recipient. Investment decisions should be based on an individual's own goals, time horizon and tolerance for risk. The information contained herein accurately reflects the opinion of Ascendere at the time the report was released. The opinions of Ascendere are subject to change at any time without notice and without obligation or notification. The officers, affiliates or family members of Ascendere Associates may hold positions in the securities of the Companies. No warranty is made as to the accuracy of the information contained herein. The views and opinions expressed in the market commentary reflect the opinions of the author and may be based upon information obtained from third-party sources believed to be reliable but not guaranteed. These opinions are subject to change at any time based upon market or other conditions. Ascendere disclaims any responsibility to update such views. This information is intended for the sole use of clients of Ascendere. Any other use, distribution or reproduction is strictly prohibited. Investing in stocks includes a high degree of risk, including the risk of total loss. This is for informational purposes only and is not intended to constitute a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. All information, opinions and estimates are current as of original distribution by author and are subject to change at any time without notice. Any companies, securities and/or markets referenced are solely for illustrative purposes. Past performance is not indicative of future performance, and no representation or warranty, express or implied, is made regarding future performance. For Investment Professional use only. NOT FOR FURTHER DISTRIBUTION. Any dissemination or copying of this commentary is strictly prohibited.


J. Stephen Castellano – founded Ascendere Associates LLC in 2009 to provide innovative equity research and financial modeling consulting services. Among the services that Ascendere provides are: 1) detailed custom equity research analysis; 2) valuation scenario analysis studies; 3) supply /demand studies; 4) long and short stock idea generation; 5) portfolio feedback; 6) detailed fundamental financial modeling services; and 7) additional analytical consulting services. Additional information is available at jstephencastellano.tumblr.com.

Mr. Castellano has over 20 years of experience in equity research and related consulting positions. At PaineWebber, Warburg Dillon Read, and Credit Lyonnais Securities he developed fundamental equity valuation models and conducted in-depth research on the steel and telecom services industries. At Boston Private Value Investors, he built sophisticated screens for stock idea generation and also provided general fundamental equity research coverage. He received a MBA from the F. W. Olin School of Business at Babson College (2005) and a BA from Oberlin College (1993). He is a CFA Level 3 candidate, and is on the Board of Advisors of GovBrain, a political intelligence and government analytics company serving the hedge fund industry. Mr. Castellano’s sell side equity research experience includes consulting with investment banking teams on planned equity, debt, and M&A deals. Consulting projects have included the development of xml-based financial models as well as marketing strategies for a financial data provider, equity research reports for a family office equity portfolio, supply/demand models for a telecom consulting firm, cash burn rate scenarios for a key stakeholder in an iconic food manufacturing company, a budget forecast model for a 250,000 bpd oil refining company, a budget forecast and valuation for a risk management software startup, and due diligence of a potential acquisition of a fast-growing fashion apparel boutique, among others. Mr. Castellano's career history is highlighted below:

• Ascendere Associates, LLC (2009-Present) • Boston Private Value Investors , Equity Research, Equity Research Analyst (2005-2009) • Pyramid Research, Contract Consultant, Telecom Services (2002-2003) • Credit Lyonnais Securities (USA), Equity Research, Telecom Services, Vice President (2000-2001) • Warburg Dillon Read, Equity Research, Telecom Services, Research Associate (1999-2000) • PaineWebber, Equity Research, Steel and Nonferrous Metals, Research Associate, Editor (1995-1999)

http://www.jstephencastellano.tumblr.com/

ascendere associates llc innovative long/short equity research · 2017. 4. 2. · gw...

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