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 is an update to our model portfolio report, The Best 29 Stocks for 2017.
A long position in Facebook, Inc. (FB) has reached its price target in our theoretical long model portfolios and will be assumed closed at the end of trading Monday, January 16, 2016.
A short position in Autodesk, Inc. (ADSK) has hit a stop loss target and will be assumed closed at the end of trading on Monday.
MTD the theoretical Core and Opportunistic Long Model portfolios are up +2.22%. The S&P 500 is up +1.59% MTD and the SPDR S&P 500 ETF (SPY) is up +1.57%.
Stocks in the theoretical Core Short Model portfolio are up 4.04% for the assumed equivalent short sale loss.
Stocks in the Opportunistic Short Model portfolio we assumed to be replaced with cash just prior to the close of January 4, 2016 locking in an assumed short sale loss of -5.56%.
The Long/Short Core Model and Long/Short Opportunistic Model portfolios are down -1.82% and -3.34% MTD, respectively.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: 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.