Ascendere Associates LLC Innovative Long/Short Equity Research

Ascendere Associates LLC [email protected] J. Stephen Castellano Page 1 July 31, 2017

Ascendere Associates LLC Innovative Long/Short Equity Research

Model Portfolio Monthly Update: July 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 2-7 contain brief commentary and highlights of a few stocks that seem particularly attractive. Page 8 contains rebalancing actions for our long-only model portfolio. Page 9 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 July 31, 2017 abbreviated report and last month’s full report.

Commentary The theoretical Core Long Model portfolio finished July 2017 up +4.72% versus the +1.93% return of the S&P 500 and the +2.05% return of the SPDR S&P 500 ETF (SPY). Stocks in the theoretical Core Short Model portfolio finished up +1.62% for the assumed inverse short sale loss of -1.62%.The theoretical Core Long/Short Model portfolio finished up +3.10% (+4.72% -1.62% = +3.10%). At this time, preliminary July 2017 results for the Barclay Equity Long/Short Index are unavailable. For the year to date, on a simple cumulative return basis, the Core Long Model is up +10.46% versus the S&P 500 up +9.97%. The theoretical Opportunistic Model was assumed to move from a 30%/70% cash/stock position to a 100% stock position just prior to the July 13 close. The Opportunistic Model uses the same basket of stocks as the Core Model, but employs an additional cash allocation strategy that is triggered by stock market volatility. The Opportunistic Long/Short Model finished the month up +2.37% (+3.98% -1.62% = +2.37%). As noted earlier, theoretical portfolio returns for July 3 and July 5 reflect an extension of the basket of stocks that were in place as of June 30. The best and worst long model portfolio stocks for July 2017 Last month we chose Donaldson Company, Inc. (DCI) and Costco Wholesale Corporation (COST) as our favorite long ideas. DCI finished the July 5-July 31 period up +3.51% and COST finished up +0.31%. The best performing stock in the theoretical long models was the Internet and Direct Marketing Retail company, Vipshop Holdings Limited (VPS), up +19.19% for the July 5-July 31 period. The worst performing stock was the Communications Equipment company, InterDigital, Inc. (IDCC), down -6.24%. The best and worst short sale model portfolio stocks for July 2017 On July 5 we chose Under Armour, Inc. (UAA) as our favorite short sale idea. This stock reached its price target on July 26 and the position was assumed closed at the end of trading the next day. The stock declined -12.29% over the July 5-July 27 period for an assumed inverse short sale gain of +12.29%.

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/5020332-33-stocks-august-2017-abbreviated-report

https://seekingalpha.com/article/4086655-26-stocks-july-2017

https://seekingalpha.com/instablog/528627-stephen-castellano/5009231-model-portfolio-returns-july-3minus-5-2017


For the second month in a row Snap Inc. (SNAP) was the best performing short sale idea, declining from July 5 through one day after its July 24 price target by -19.8% for the assumed inverse short sale gain. The worst performing short sale idea was Nektar Therapeutics (NKTR), which finished the July 5-July 25 period up +15.86% for the assumed inverse short sale loss. 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. As a simple quantitative model based on fundamental rankings, the portfolio models do not take into account rumors or pending M&A transactions. Theoretical return data does not assume the impact of costs such as execution fees, margin fees, slippage, the availability of stocks for short selling, or any other kind of cost. Returns for July 3 and 5, 2017 reflected an extension of the same basket of stocks that were in place as of June 30. We favor reporting theoretical model portfolio returns data on a on a simple cumulative basis. Cumulatively adding daily returns allows for the easy comparison of returns from one period to another. Since March 31, 2009 the S&P 500 has returned 123.23% on a simple cumulative return basis and 209.61% on a compound return basis. Over the same period, the theoretical Core Long Model has returned 186.57% on a simple cumulative return basis and 428.18% on a compound return basis. In most cases 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 August 2017 Long Portfolio Rebalancing Actions As noted in our abbreviated report, just prior to the July 31, 2017 close, we assume 10 stocks have left the long-only model, 17 have been added, and 16 positions have been rebalanced. This 33-stock theoretical long model assumes a 3.03% weight for each stock. The long model portfolios are composed of high-quality stocks. Short Sale Portfolio Rebalancing Actions Just prior to the July 31, 2017 close, we assume that 7 stocks have left the theoretical short-sale model portfolios, 8 have been added, and 14 have been rebalanced. This 22-stock theoretical model portfolio assumes a 4.55% 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. Our favorite idea for August 2017 is Facebook, Inc. (FB). Facebook was our favorite idea for the November 30, 2016 update when the stock was at $118.42. Despite the 43% run-up to $169.25 today, we think it looks more attractive now from a simple quantitative perspective. FB was ranked 3-3-5 back in November; today's ranking of 3-4-5. This indicates the company's operating momentum has improved, while relative value is still attractive and consensus estimates continue to be revised higher. The key assumption here is that ongoing positive consensus estimate revisions could be indicative of the likelihood for ongoing fundamental momentum. (We intend to review this stock in more detail once we complete an equity research consulting project for one of our institutional clients.) The tables below is a wonderful thing to behold, since it clearly portrays the ongoing fundamental momentum being generated by this $492b market cap beast.

https://seekingalpha.com/instablog/528627-stephen-castellano/5020332-33-stocks-august-2017-abbreviated-report


Facebook, Inc. (FB)For the Fiscal Period Ending 12 months

Mar-31-201612 months

Jun-30-201612 months

Sep-30-201612 months

Dec-31-201612 months

Mar-31-201712 months

Jun-30-2017Profitability Return on Assets % 9.7% 11.0% 12.3% 13.7% 14.4% 14.9% Return on Capital % 10.7% 12.1% 13.6% 15.1% 15.9% 16.6% Return on Equity % 11.6% 14.4% 16.7% 19.8% 21.1% 22.5% Return on Common Equity % 11.6% 14.4% 16.6% 19.7% 21.1% 22.5%

Margin Analysis Gross Margin % 84.6% 85.1% 85.5% 86.3% 86.4% 86.6% SG&A Margin % 21.8% 21.2% 20.3% 19.9% 19.9% 19.5% EBITDA Margin % 47.3% 49.3% 51.5% 53.7% 54.0% 54.5% EBITA Margin % 40.6% 42.9% 45.4% 47.9% 48.3% 48.9% EBIT Margin % 36.9% 39.5% 42.3% 45.2% 45.9% 46.7%

Source: S&P Capital IQ


Facebook, Inc. (FB)EPS Normalized

FY 2017 FY 2018Current 5.54 6.691 month ago 5.01 6.352 months ago 4.91 6.163 months ago 5.45 6.716 months ago 5.22 6.589 months ago 5.06 6.4912 months ago 5.01 6.4218 months ago 4.14 5.40

RevenueFY 2017 FY 2018

Current 39,131 50,607 1 month ago 38,540 49,337 2 months ago 38,539 49,336 3 months ago 37,939 48,312 6 months ago 36,875 46,904 9 months ago 36,700 47,066 12 months ago 36,347 46,736 18 months ago 33,739 42,649

EBITDA FY 2017 FY 2018

Current 24,453 30,992 1 month ago 23,899 30,231 2 months ago 23,871 30,205 3 months ago 23,745 30,207 6 months ago 23,131 29,626 9 months ago 22,783 29,812 12 months ago 22,744 29,677 18 months ago 20,463 27,309

Source: S&P Capital IQ


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

7/31/2017 Rebalancing

Core and Opportunistic Long Portfolio:33 stocks in the model portfolio = 3.03% weight per position

Close Position Hold/Rebalance Open PositionVipshop Holdings Limited VIPS Dollar General Corporation DG KKR & Co. L.P. KKRCostco Wholesale Corporation COST Yum! Brands, Inc. YUM Evercore Partners Inc. EVRApollo Global Management, LLC APO East West Bancorp, Inc. EWBC First Horizon National Corporation FHNAnthem, Inc. ANTM Bristol-Myers Squibb CompanyBMY Morgan Stanley MSThe Brink's Company BCO Agilent Technologies, Inc. A Cathay General Bancorp CATYDonaldson Company, Inc. DCI Masimo Corporation MASI Raymond James Financial, Inc. RJFIntuit Inc. INTU MasTec, Inc. MTZ Home Bancshares, Inc. (Conway, AR) HOMBTeradyne, Inc. TER ManpowerGroup Inc. MAN SVB Financial Group SIVBCDW Corporation CDW Graco Inc. GGG The PNC Financial Services Group, IncPNCAnsys, Inc. ANSS InterDigital, Inc. IDCC Amgen Inc. AMGN

Advanced Energy Industries, In AEIS Celgene Corporation CELGNorbord Inc. OSB EMCOR Group, Inc. EMETrinseo S.A. TSE Valmont Industries, Inc. VMILouisiana-Pacific Corporation LPX Stamps.com Inc. STMPCabot Corporation CBT Vishay Intertechnology, Inc. VSHWorthington Industries, Inc. WOR Facebook, Inc. FB

Source: Ascendere Associates LLC United States Steel Corporation X


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.

7/31/2017 Rebalancing

Core and Opportunistic Short Portfolio:22 stocks in the model portfolio = 4.55% weight per position

Close Position Hold/Rebalance Open Short SaleMattel, Inc. MAT Under Armour, Inc. UAA Vail Resorts, Inc. MTNWillis Towers Watson Public Lim WLTW Liberty Broadband Corporation LBRD.A Penske Automotive Group, Inc. PAGCIT Group Inc. CIT MetLife, Inc. MET National Oilwell Varco, Inc. NOVIncyte Corporation INCY Kite Pharma, Inc. KITE Allergan plc AGNJohn Bean Technologies CorporatJBT Ultragenyx Pharmaceutical Inc RARE Johnson Controls International plc JCISnap Inc. SNAP Nektar Therapeutics NKTR Flowserve Corporation FLSTIM Participações S.A. TSU The Medicines Company MDCO Alliance Data Systems Corporation ADS

Jacobs Engineering Group Inc. JEC Cree, Inc. CREERitchie Bros. Auctioneers IncorRBAZTO Express (Cayman) Inc. ZTOSymantec Corporation SYMCPTC Inc. PTCAgrium Inc. AGU

Source: Ascendere Associates LLC The Mosaic Company MOS


Return Data

Core & Opportunistic Long Model MTD Theoretical 7/05/2017 to 7/31/2017

Target/ Date+1 Sector Company Ticker 7/5/2017 7/31/2017 Performance Stop Date Sell Price ReturnConsumer Discretionary Vipshop Holdings Limited VIPS 10.32 12.30 19.19%Industrials The Brink's Company BCO 66.90 78.15 16.82% 7/26/2017 79.85$ 19.36%Materials Norbord Inc. OSB 31.19 35.46 13.69% 7/31/2017 NAInformation Technology Teradyne Inc. TER 30.88 34.59 12.01% 7/20/2017 35.13$ 13.76%Information Technology Advanced Energy Industries, Inc. AEIS 65.80 72.55 10.26%Information Technology Ansys, Inc. ANSS 120.87 129.55 7.18%Financials Apollo Global Management, LLC APO 26.36 28.10 6.60%Industrials Graco Inc. GGG 109.30 116.04 6.17%Consumer Discretionary Dollar General Corp. DG 71.24 75.16 5.50%Materials Louisiana-Pacific Corp. LPX 24.09 25.11 4.23%Information Technology Intuit Inc. INTU 131.98 137.21 3.96%Industrials Donaldson Company Inc. DCI 45.88 47.49 3.51%Healthcare Masimo Corporation MASI 91.59 94.60 3.29%Consumer Discretionary Yum! Brands Inc. YUM 73.08 75.48 3.28%Materials Cabot Corporation CBT 53.07 54.33 2.37%Materials Worthington Industries, Inc. WOR 49.51 50.67 2.34%Industrials MasTec, Inc. MTZ 45.30 46.20 1.99%Healthcare Bristol-Myers Squibb Co. BMY 56.35 56.90 0.98%Information Technology CDW Corporation CDW 62.99 63.43 0.70%Consumer Staples Costco Wholesale Corp. COST 158.02 158.51 0.31%Healthcare Agilent Technologies Inc. A 59.77 59.79 0.03%Materials Trinseo S.A. TSE 70.30 70.30 0.00%Healthcare Anthem, Inc. ANTM 191.25 186.21 -2.64%Financials East West Bancorp Inc. EWBC 60.06 56.98 -5.13%Industrials ManpowerGroup Inc. MAN 113.83 107.15 -5.87%Information Technology InterDigital, Inc. IDCC 77.70 72.85 -6.24%

Ascendere Associates LLC


Core & Opportunistic Short Model MTD ts hit target 8/4/2011 for 14.84% gain7/05/2017 to 7/31/2017

Target/ Date+1 Sector Company Ticker 7/5/2017 7/31/2017 Performance Stop Date Sell Price ReturnInformation Technology Snap Inc. SNAP 17.32 13.67 -21.07% 7/24/2017 13.89$ -19.80%Consumer Discretionary Under Armour, Inc. UAA 22.14 20.02 -9.58% 7/26/2017 19.42$ -12.29%Financials CIT Group Inc. CIT 50.04 47.65 -4.78% 7/31/2017 NAConsumer Discretionary Mattel Inc. MAT 20.97 20.02 -4.53%Industrials Jacobs Engineering Group, Inc. JEC 54.86 52.72 -3.90%Industrials Ritchie Bros. Auctioneers Incorporated RBA 29.26 28.23 -3.52%Industrials John Bean Technologies Corporation JBT 95.55 92.40 -3.30%Information Technology PTC Inc. PTC 56.11 55.19 -1.64%Financials MetLife, Inc. MET 55.89 55.00 -1.59%Healthcare Ultragenyx Pharmaceutical Inc. RARE 66.72 66.32 -0.60%Healthcare Medicines Co. MDCO 38.64 38.45 -0.49%Healthcare Kite Pharma, Inc. KITE 106.50 108.41 1.79%Industrials ZTO Express (Cayman) Inc. ZTO 14.67 14.98 2.11%Financials Willis Towers Watson Public Limited CoWLTW 145.49 148.88 2.33%Healthcare Incyte Corporation INCY 128.34 133.29 3.86%Materials Mosaic Co. MOS 22.87 24.14 5.55%Healthcare Nektar Therapeutics NKTR 20.05 21.83 8.88% 7/24/2017 23.23$ 15.86%Materials Agrium Inc. AGU 91.14 100.10 9.83% 7/14/2017 98.45$ 8.02%Telecommunication ServicesTIM Participacoes SA TSU 15.25 16.87 10.62% 7/27/2017 17.08$ 12.00%Information Technology Symantec Corporation SYMC 27.79 30.99 11.51% 7/12/2017 30.36$ 9.25%Consumer Discretionary Liberty Broadband Corporation LBRDA 84.58 98.92 16.95% 7/27/2017 94.44$ 11.66%

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* 07/31/17 MTD YTDSince

03/31/09 SharpeSimple Returns (No Compounding)

Stock Targets Core ModelLong -0.44% 4.72% 10.46% 186.6% 1.01 Short 0.12% 1.62% 1.49% 66.0% 0.39 Core Long/Short -0.56% 3.10% 8.96% 120.6% 0.93

Stock Targets and Opportunistic ModelPortfolio Targets Long -0.44% 3.98% 8.03% 158.9% 1.11

Short 0.00% 1.62% 5.62% -3.5% (0.03) Opportunistic Long/Short -0.44% 2.37% 2.40% 162.4% 1.30

Stock Targets and Opportunistic Model IIIPortfolio Targets Long Stocks -0.44% 3.98% 8.03% 158.9% 1.11

Long Inverse ETF ^SH 0.00% -1.49% -6.82% -86.8% (0.79) Opportunistic Long/Short III -0.44% 2.49% 1.21% 72.1% 0.68

S&P 500 Index -0.60% 1.93% 9.98% 123.22% 0.94






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

7/31/2017 Theoretical Theoretical Theoretical TheoreticalSimple ReturnsToday 0.60% 0.60% 0.80% 0.60% -0.07%MTD 4.72% 3.98% 2.37% 2.49% 1.93%YTD 10.46% 8.03% 2.40% 1.21% 9.98%Cumulative from 3/31/2009 186.57% 158.91% 162.43% 72.11% 123.22%

Absolute RiskDaily Average 0.09% 0.08% 0.08% 0.03% 0.06%Daily Range 16.86% 15.84% 11.84% 12.00% 11.40%Daily Standard Deviation 1.38% 1.08% 0.94% 0.79% 0.98%Daily Return/Standard Deviation 6.43% 7.04% 8.25% 4.37% 5.97%

Average 90-Day T-bill 1.18% 1.18% 1.18% 1.18% 1.18% Annualized Daily Returns 22.41% 19.09% 19.51% 8.66% 14.80% Annualized Standard Deviation 21.9% 17.1% 14.9% 12.5% 15.6%Sharpe Ratio 0.97 1.05 1.23 0.60 0.87

Percentage Down Days 45.4% 35.6% 43.1% 45.2% 45.5%Average Daily Downside Value -0.98% -0.86% -0.64% -0.52% -0.69%Daily Downside Deviation -1.04% -0.88% -0.61% -0.55% -0.76%Daily VAR of 1000 at 95% Conf -22 -17 -15 -13 -16

Benchmark Relative RiskCorrelation 0.91 0.71 (0.05) 0.06R-Squared 0.83 0.50 0.00 0.00Daily Tracking Error 0.63% 0.79% 1.39% 1.22%

RegressionBeta 1.28 0.77 -0.04 0.05Daily Alpha 0.030% 0.017% 0.019% -0.024%Jensen's Daily Alpha 0.039% 0.013% -0.001% -0.001%

Trading Days 2098 2098 2098 2098*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 detailed corporate budget and valuation forecasts for clients of the risk management division of a global consulting company, 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/

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Ascendere Associates LLC Innovative Long/Short Equity Research