Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

May 2024
Market Update
(all values as of 10.31.2025)

Stock Indices:

Dow Jones 47,562
S&P 500 6,840
Nasdaq 23,724

Bond Sector Yields:

2 Yr Treasury 3.60%
10 Yr Treasury 4.11%
10 Yr Municipal 2.73%
High Yield 6.53%

YTD Market Returns:

Dow Jones 11.80%
S&P 500 16.30%
Nasdaq 22.86%
MSCI-EAFE 23.69%
MSCI-Europe 25.44%
MSCI-Pacific 25.83%
MSCI-Emg Mkt 30.32%
 
US Agg Bond 6.80%
US Corp Bond 7.29%
US Gov’t Bond 6.51%

Commodity Prices:

Gold 4,013
Silver 48.25
Oil (WTI) 60.88

Currencies:

Dollar / Euro 1.15
Dollar / Pound 1.31
Yen / Dollar 153.64
Canadian /Dollar 0.71

Portfolio Overview

Ocean Park Investors Fund gained 6.88%* in May.  The S&P 500 gained 4.80% and the NASDAQ Composite gained 6.88%.  Portfolio consumer stocks rose strongly, paced by Abercrombie and Fitch and The Gap which each gained more than 40%.  Portfolio tech stocks also trended upward, paced by Nvidia which gained another 26%.

During May, we increased exposure to the autos and transportation sector and reduced exposure to the producer durables and health care sectors.  We sold some stocks ahead of earnings and some on disappointing results and guidance, and replaced them with brighter prospects.  Among the stocks we sold were Salesforce, Atkore, Disney, and Parker-Hannafin.  We also trimmed our holding in Nvidia.  As the stock skyrocketed over the past year, our position became outsized so we took some profit to bring it more into balance.  In addition, we initiated new positions in Corning, Ford, and Teradyne, and added to our position in Micron.  We finished the month at about 98% net long, up from about 96% in April.

 

 

Daily updates on our activity are available on our Results Line, at 310-281-8577, and current information is also maintained on our website at www.oceanparkcapital.com. To gain access to the site enter password opcap.

*These results are pro forma. Actual results for most investors will vary. See additional disclosures on page 4. Past performance does not guarantee future results.

 
Equity Overview

Equity Overview

Ten of eleven S&P 500 sectors gained in May, with utilities the big winner and energy the only loser.  Growth stocks outperformed value.  Volatility was modest, as the S&P 500 moved more than 1% on only 3 of 22 trading days. The forward price/earnings ratio for the S&P 500 rose to 20.5, up from 20.0 in April and well above the 5-year average of 19.2.

Fourth quarter earnings reported in May tracked the results in April.  With 97% of S&P 500 companies reporting, 78% beat consensus earnings expectations and 61% beat consensus revenue expectations.  Earnings beats were consistent with the 5-year average, but revenue beats were well below the 5-year average of 69%.  The magnitude of earnings beats was 7.5% above consensus, somewhat below the five-year average of 8.5%.

 

 

 
Macro Overview

Macro Overview

Economic headlines in May suggested a softening economy.  Job growth and wage growth moderated notably.  Unemployment ticked up to 3.9%.  Retail sales were weaker than expected.  The Consumer Price Index rose 3.4% year over year, down from 3.5% the previous month.  The Commerce Department revised its estimate of first quarter GDP growth downward, from 1.6% to 1.3%.

That apparent trend might encourage the Federal Reserve to speed up interest rate cuts.  But the Fed apparently wants more evidence.  Chairman Powell continued to dampen rate cut expectations, stating that “we will need to be patient and let restrictive policy do its work.”

 

 

 
Additional Disclosures

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets.  Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund.  The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.

 

 

 

 

Ocean Park Capital Management · 2503 Main Street · Santa Monica CA 90405 · 310-392-7300