Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

November 2021
Market Update
(all values as of 03.31.2022)

Stock Indices:

Dow Jones 34,678
S&P 500 4,530
Nasdaq 14,220

Bond Sector Yields:

2 Yr Treasury 2.28%
10 Yr Treasury 2.32%
10 Yr Municipal 2.23%
High Yield 5.79%

YTD Market Returns:

Dow Jones -4.21%
S&P 500 -4.69%
Nasdaq -9.10%
MSCI-EAFE -6.61%
MSCI-Europe -7.93%
MSCI-Pacific -4.08%
MSCI-Emg Mkt -7.32%
 
US Agg Bond -5.93%
US Corp Bond -7.69%
US Gov’t Bond -6.33%

Commodity Prices:

Gold 1,941
Silver 24.96
Oil (WTI) 100.72

Currencies:

Dollar / Euro 1.11
Dollar / Pound 1.31
Yen / Dollar 121.90
Dollar / Canadian 0.80

Portfolio Overview

Ocean Park Investors Fund gained 0.52%* in November.  The S&P 500 fell 0.83% and
the NASDAQ Composite rose 0.25%.  Once again, technology stocks—and particularly chip stocks—drove the fund’s performance, outweighing softness in financial and healthcare stocks.  Standouts included Advanced Micro Devices (up 32%) and NVIDIA (up 28%).

During November, we increased positions in the technology sector and reduced positions in the healthcare sector.  We finished the month at about 92% net long, up from about 90% in October.

 

 

 

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

Technology and consumer stocks gained in November, but all other sectors lost ground. Results were mixed across capitalization levels as large growth stocks rose but mid- and small-cap growth stocks fell, and value stocks fell at all cap levels. The NASDAQ Composite was volatile, moving by 1% or more on 7 of 22 trading days.

Markets gyrated in the last three trading days of the month, as investors worried that the newly-discovered Covid Omicron variant could lead to increased restrictions and diminished economic activity

Third quarter corporate earnings reported in November moderated from the stellar results in October, but continued strong.  Toward month’s end, with 95% of S&P 500 companies reporting, 82% beat consensus earnings estimates and 75% beat consensus revenue estimates, in both cases below the one-year average but above the five-year average.  The blended earnings growth rate came in at 39.6%, better than the analyst consensus of 27.5% at the beginning of the quarter.

 

 

 

 
Macro Overview

Macro Overview

Economic data reported in November were generally positive.  Employment, manufacturing, housing, and retail sales all showed gains.  However, inflation rose 6.2% year-over-year, the largest increase since 1990.  The University of Michigan reported that concerns about inflation led to a decline in consumer sentiment to the lowest level in ten years.

Accepting the obvious, the Fed acknowledged that significant inflation was likely to continue well into 2022.  In response, Chairman Powell indicated that tapering of bond purchases would accelerate.  Analysts doubted that measure would be sufficient, and prices in the bond markets suggested that a series of interest rate increases in 2022 would be necessary.

 

 

 
Additional Disclosures and Privacy Notice

Additional DisclosuresPerformance 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.

 

Privacy Notice

Federal privacy laws require that we explain to you how we handle “nonpublic personal information.”  This is information we receive or develop about you in the course of our relationship with you.  It includes information you provide to us orally or in the Confidential Investor Questionnaire or other forms, and information we learn about you in the course of providing services to you.

We do not disclose nonpublic personal information about you to third parties, except in certain limited circumstances.  These circumstances include (a) disclosure to our attorneys, auditors, prime brokers, or custodians in the course of providing services to you, (b) disclosure with your consent, or (c) disclosure where required by law or judicial process, such as a court order.

We also restrict your nonpublic personal information to those employees who need to know such information in order to provide services to you.  And we maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information.

Please call us at (310) 392-7300 if you have any questions.