Recommendation: Buy Blackstone (BX)

Key Investment Points Dividend play with embedded call option on prosperity Increasing AUM despite low stock price Big real estate player Dividend immune to proposed new tax law More value today than a year ago Improving operating cash flow

Industry Overview Focus on operational excellence, growth, performance, risk management, and compliance Asset Management CEOs most optimistic out of any industry Very capable of adaptation and reinvention Transition taking place in risk taking Opportunities are plentiful

Blackstone (BX) Company Profile

Prev Close: y Target Est: wk Range: Avg Vol (3m):3,884,600 Market Cap:6.59B P/E (ttm):N/A EPS (ttm):-.35 Div & Yield:0.40 (3.10%) Forward P/E: Investment Information 3 Year Price Graph (Morningstar)

 SWOT analysis, and how each point impacts company EPS/valuation multiple SWOT Analysis Strengths  Scale and brand  Breath of business lines  Proven investment process  Stable, consistent investment team Weaknesses  Uncertain realization cycle  More opportunities to buy than sell  Unrealized mark to market losses in PE and RE Opportunities  Broad network of relationships to find deals  European asset sales  Volatility and value dislocation  Significant “dry powder” to use  Future Performance Fees Threats  Grow to big to fast  Prolong period of low realizations (stock remain range bound)  Key management and relationships leave the firm

Book Value

Investment Thesis We should own this stock due to guaranteed revenue from increasing AUM, call option on performance fees, solid dividend, and improved valuation.

 Sector : Alternative  Industry Group: Asset Management  Current Holdings: ODMX, PRPFX, MOO,GXG  Target Sector Allocation: 10%, $43,765  Current Sector Allocation: 8.1%, $35,158  Remaining Allocation: 1.91%, $8,318  BUY 400 shares of BX at Limit Price of $13.50 (approx. $5,400, 1.24% of portfolio)  Allocation after purchase: 9.32% Portfolio Placement / Recommendation