Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

April 2021
Market Update
(all values as of 04.30.2021)

Stock Indices:

Dow Jones 33,874
S&P 500 4,181
Nasdaq 13,962

Bond Sector Yields:

2 Yr Treasury 0.16%
10 Yr Treasury 1.65%
10 Yr Municipal 0.98%
High Yield 4.20%

YTD Market Returns:

Dow Jones 10.68%
S&P 500 11.32%
Nasdaq 8.34%
MSCI-EAFE 5.63%
MSCI-Europe 7.77%
MSCI-Pacific 2.03%
MSCI-Emg Mkt 4.36%
 
US Agg Bond -2.61%
US Corp Bond -3.59%
US Gov’t Bond -3.44%

Commodity Prices:

Gold 1,767
Silver 25.90
Oil (WTI) 63.52

Currencies:

Dollar / Euro 1.21
Dollar / Pound 1.39
Yen / Dollar 108.83
Dollar / Canadian 0.81
 

Portfolio Overview

Ocean Park Investors Fund gained 2.63%* in April, while the S&P 500 rose 5.24% and the NASDAQ Composite rose 5.40%.  The fund’s financial and health care stocks underperformed.  Our QQQ short, which is a hedge against the NASDAQ Composite designed to smooth out our performance and reduce risk, also moderated our results.

During April, we increased positions in the consumer discretionary and service sector and reduced positions in the financial services sector.  We finished the month at about 95% net long, up from about 92% in March.

 

 

 

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 four. Past performance does not guarantee future results.

 
Equity Overview

Equity Overview

All market sectors gained in April.  Real estate stocks gained the most and energy stocks gained the least. Reversing the trend in March, growth stocks outperformed value stocks.  Volatility was modest.

First quarter earnings results reported in April were strong.  With 60% of S&P 500 companies reporting, the blended earnings growth rate came in at +45.8%, significantly better than the consensus of +23.8%.  (Bear in mind that the 45.8% number reflects a year-over-year increase, so the comparison is to the weak earnings reported in the first quarter of 2020 when the pandemic hit.)  More significantly, 86% of companies reporting beat consensus earnings estimates and 78% beat consensus revenue estimates, in both cases well ahead of the one-year and five-year averages.

 

 

 
Macro Overview

Macro Overview

As vaccinations increase and the pandemic subsides, the economy is rebounding dramatically.  In its initial take on the first quarter of 2021, the Commerce Department estimated that GDP grew at the annualized rate of 6.4%.  This comes on top of 4.3% growth in the fourth quarter of 2020.

Not surprisingly, inflation is reappearing after a long stretch of price stability.  But the Fed indicates that this is to be expected along with the recovery.  It views the spikes in GDP and inflation as temporary phenomena which will normalize in 2022.

Meanwhile, individual investors’ stockholdings set a record in April:  41% of household financial assets are in stocks, which is the highest percentage since recordkeeping began in 1952.

 

 

 

 
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.