1. Sell Recommendation: The Blackstone Group LP (BX)

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

3. Rationale for Sale (BX) Current law 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. Prev Close:15.36 1y Target Est:17.57 52wk Range:11.13—17.25 Avg Vol (3m):2,643,620 Market Cap:7.96B P/E (ttm):22.91 EPS (Est):1.45 Div & Yield:0.40 (3.10%) Forward P/E: 10.58

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