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Green & Gold Fund

We recommend selling 400 shares of The Blackstone Group LP (BX) at a price of $15.37 due to concerning developments in company management and financial performance. Pending lawsuits and allegations of conspiracy have caused significant shareholder losses exceeding $1 billion. Additionally, the firm’s costly investments, particularly in Senrigan Capital and real estate underperformance, raise red flags. With a dismal 2012 record compared to major competitors, the original investment thesis is no longer viable, necessitating a strategic exit.

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Green & Gold Fund

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Presentation Transcript

  1. Sell Recommendation: The Blackstone Group LP (BX) Green & Gold Fund

  2. Current Financials Position • XLF, ASPS, VRSK, BAC, BX • Overweight by 3.16%--$17,000

  3. Rationale for Sale (BX) • Currentlaw suite pending on conspiracy/collusion • Alleged that shareholders lost $1B • Emails from top executives were revealed last week • James to Roberts--“Together we can be unstoppable, but in opposition we can cost each other a lot of money . . . We would much rather work with you.”

  4. Rationale for Sale (BX) • Made some bad investments in an Asian fund (Senrigan Capital) that lost a ton of money--$500M • Put 5 investments worth $40M into a separate “special purpose vehicle” • Its 2012 record is among worst than other major funds • Invested heavily in real estate, but probably will not pay off for a long time due to current market conditions

  5. BX vs S&P 50013.73% ROI

  6. Company Profile (BX) • Sector: Financials • Company Description: • Provides alternative asset management and financial advisory services worldwide including private equity, real estate, hedge fund solutions, and credit businesses • Original Investment Thesis: • “We should own this stock due to guaranteed revenue from increasing AUM, call option on performance fees, solid dividend, and improved valuation”

  7. Explanation for Sell (BX) • Due to recent events surrounding the company • Being run by poor and unethical management • 2012 record is among worst compared to its competitors and other major funds • Original thesis is being negated due to its fair share of problems • The stock does not have the potential growth as other investments we are looking into such Fiserv and ACN

  8. Portfolio Recommendation Target Sector Allocation: 8.86% Sell 400 Shares of BX at Price of $15.37 (Approx. $6,148)

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