Professionals

DANIEL SCOTTO

Founder and CEO

Dan Scotto has enjoyed a very successful career on Wall Street — few can match his research and investment accomplishments. His contributions have been demonstrated at leading Wall Street firms notably: L.F. Rothschild, DLJ, Bear Stearns, Utendahl Securities and BNP Paribas. In addition, portfolio models developed by Scotto resulted in returns that were on average 4% above the market. For nine consecutive years, Scotto ranked “First Team” in Institutional Investor’s ALL-AMERICA RESEARCH TEAM survey. Based on his consistent ability to assess risk well ahead of the market resulted in total returns on assets through capital appreciation and income which exceeded all Wall Street conventions — the most spectacular of which was his prediction of Enron’s failure five months before the company was forced into bankruptcy.

Research History and Portfolio Risk Appraisal
Dan Scotto began his career at Standard & Poor’s in the Corporate Bond Rating division, with primary analytical responsibilities for regulated industries. When Scotto moved to L. F. Rothschild’s as Director of Corporate Bond Research and Senior Utility Analyst, he developed a multi-industry Risk Assessment Template which is still used by S&P today. During the 1987 market crash he succeeded in forming the Hampton Utility Fund, acting as a member of the board and its Senior Investment Strategist. Scotto was the first to combine both high-grade and high-yield research at DLJ. Bear Stearns & Co recruited Scotto to form a consolidated high-grade, high-yield and emerging market research effort. At DLJ, it became apparent that the fixed-income risk-evaluation approach could readily be transferred to stock selection and valuations helping achieve above average rates-of-return.

The unique debt/equity approach to risk assessment has a demonstrated record of success, especially when coupled with our strong analytical research approach. In 2000, our model and our understanding of the California regulatory climate triggered a “sell” signal of all California utilities. Mr. Scotto’s “sell” recommendation anticipated the California energy crisis seven months ahead of the market. The unprecedented action resulted in significant profits for those investors who followed Mr. Scotto’s bold advice.

Mr. Scotto’s opinions and forecasts frequently appear in The Wall Street Journal, The New York Times, CNBC, Forbes and Public Utility Fortnightly. He has often been invited as a featured speaker at various conferences.

Asset Management and Investment Banking
Scotto also has been involved in several major investment banking projects, having served as the

• Chief Regulatory Negotiator during New York State’s acquisition of the Long Island Lighting Co. (LILCO) by the Long Island Power Authority (LIPA).

Other investment banking activities included:

• The reorganization of Western Resources, Tucson Electric, and representing El Paso Electric sale-lease back bonds (i.e. SLOBs).

In 1998 and 1999 Mr. Scotto advised Presidential Candidate Al Gore on expanding the role of “green energy” as part of his National Energy campaign strategy.

Partly based on his 15 years of experience dealing with Texas regulators, in 2001 the Bush Administration called upon Mr. Scotto to comment on California’s energy crisis and the current status of U.S. energy supply.

Rate Case & Legislative Testimony includes:

• Guest lecturer at Yale University School Of Management & Yale Chief Executive Leadership Institute
• Participated in the NANO-Economic curriculum for the University of Albany School of Science and Technology
• Lectured at Princeton University on the 10 Ways to Avoid the Next Enron
• Presented: ”Ethics in Corporate America” at a National Attorney’s General Conference
• Southeast State Treasures Association: Budgetary Impact of Deregulation
• National Conference of State Legislators: Utility Deregulation
• Securitization Report (February 1997), included as Draft Texas legislation
• Texas Utilities Electric: Financial Integrity Testimony
• Long Island Lighting Company: Financial Integrity Testimony

Educational Background
Mr. Scotto holds an MBA in Finance from Pace University (With Honors) and a Bachelor of Science degree from St. Francis College.

COLIN McCALL

Managing Director, Airline & Aircraft Specialist

Colin McCall is a managing director at Whitehall Financial Advisors LLC and is a senior member in the Corporate Finance division and co-head of the strategic corporate analytical task force. Mr. McCall specializes in coverage of the airline industry, where he is able to leverage his nearly 15 years of experience as a pilot; first as a flight instructor for FlightSafety International and then as a pilot for a United Airlines affiliate. He has worked for Lehman Brothers and Prudential Securities.

At FlightSafety International Mr. McCall worked as a flight instructor where he not only was responsible for new pilot training and evaluation but had the authority to conduct and approve new pilot certifications for such major air carriers as Alitalia, Asiana (a.k.a. South Korea Airlines) as well as mainland Chinese and Taiwanese airlines.  Mr. McCall holds licenses to operate aircraft with Commercial Single and Multiengine ratings and is a Certified Flight Instructor. Mr. McCall’s teaching experience and in-depth understanding of the profit challenges facing the airline industry make him uniquely qualified to discern the early changes in the economic outlook for both the legacy and the regional airlines and is credited with anticipating the demise of FLYi. His corporate finance activities include preparation of financial integrity testimony in the Pacific Gas & Electric bankruptcy as well as a member of a two-person arbitration panel valuing the assets of NorthWestern Corporation. He has also consulted and assisted in the preparation of energy deregulation legislation by Paul Tonko, formerly the Chairman of the Energy Committee of the New York State Assembly.

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