Long/Short Equity, Growth At A Reasonable Price
Contributor Since 2009
J. Stephen Castellano founded the equity research and financial modeling consulting firm Ascendere Associates in 2009, building upon a diversified 20-year career in sell side and buy side equity research. His roles included coverage of the steel industry at PaineWebber and telecom services at Warburg Dillon Read (the predecessors to UBS), where he worked closely with institutional sales people, traders and investment bankers. In addition, he provided analytical support for numerous independent valuation, consulting and investment banking studies, including for mergers, secondary offerings and IPOs. At Ascendere Associates, in addition to developing equity research for family offices and other clients, he has consulted for a wide range of startups, established businesses, and global consulting firms. Mr. Castellano holds a B.A. in English from Oberlin College, an MBA from the F.W. Olin School of Business at Babson College, and has passed the first two levels of the CFA exam.
This post is in reference to our latest model portfolio update, The Best 24 Stocks for 2016.
For the month to date, seven stocks in our theoretical short models have reached price targets.
The four stocks that reached their targets on Friday, January 8, 2016 are:
Platform Specialty Products Corporation (PAH), Yandex N. V. (YNDX), Colfax Corporation (CFX), and Albemarle Corp. (ALB), which have declined -26.5%, -14.6%, -13.1%, and -12.5% for the month to date, respectively, for the equivalent short sale gains.
These stocks will likely be assumed closed at the end of trading on Monday, January 11.
For the month to date, our Core Long Model portfolio and Opportunistic Long Model portfolio are down -7.89% versus a decline of -6.09% in the S&P 500.
MTD the Core Short Model portfolio has theoretical short sale gains of +12.11%.
MTD the Opportunistic Short Model portfolio, which moved to a 100% cash position at the January 7 close, has posted a theoretical short sale gain of +9.96%.
The Core Long/Short Model portfolio is up +4.23% and the Opportunistic Long/Short Model portfolio is up +2.08%.
For tables of updated returns and stock price targets, please visit us at jstephencastellano.tumblr.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.