Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

September 2019
Market Update
(all values as of 07.31.2023)

Stock Indices:

Dow Jones 35,559
S&P 500 4,588
Nasdaq 14,346

Bond Sector Yields:

2 Yr Treasury 4.88%
10 Yr Treasury 3.97%
10 Yr Municipal 2.53%
High Yield 8.14%

YTD Market Returns:

Dow Jones 7.28%
S&P 500 19.52%
Nasdaq 37.07%
MSCI-EAFE 13.14%
MSCI-Europe 14.69%
MSCI-Pacific 10.45%
MSCI-Emg Mkt 9.47%
US Agg Bond 1.45%
US Corp Bond 2.87%
US Gov’t Bond 1.58%

Commodity Prices:

Gold 1,999
Silver 24.80
Oil (WTI) 81.57


Dollar / Euro 1.10
Dollar / Pound 1.28
Yen / Dollar 141.12
Canadian /Dollar 0.75

Fund Overview

Equities posted modest gains in September, while the Ocean Park funds sustained modest losses.  Market sentiment shifted to favor value-oriented stocks, which negatively impacted our growth-oriented positions.  While we underperformed the major indices, we remain ahead of the HFRI Equity Hedge Index, which is up 8.0% for the year to date.

During September, we added to positions in the consumer discretionary and service, financial services, and health care sectors, and reduced positions in the technology sector.  We ended the month at about 95% net long, up from about 93% in August.

A chart showing the performance of the Investors Fund is included below, along with our Asset Allocations. 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 - September 2019

Equity Overview

Volatility subsided in September, as only 2 of 20 trading days saw gains or losses above 1%.

Reversing the recent trend, small mid, and large cap value stocks were up substantially and significantly outperformed growth stocks which were down for the month.

Among the sectors, financials had the best gains and healthcare stocks had the worst losses.




Macro Overview - September 2019

Macro Overview

Economic data reported in September were mixed.  Retail sales were strong and housing showed signs of rebounding.  But there were worrying signs about the health of the economy.  Manufacturing continued to slow, which analysts attributed to the ongoing trade war with China.  Job growth dropped to 130,000 for the month, compared to a monthly average this year of 158,000 and a monthly average last year of 223,000.  And the current estimate for 3rd quarter GDP growth is only 1.8%, while GDP growth for 2018 was 2.9%.

With these numbers in mind, the Fed reduced interest rates by .25% for the second time this year, and is widely expected to reduce them further.

The trade war continued in haphazard fashion.  At the beginning of the month, the U.S announced new tariffs of 15% on $100-billion of Chinese consumer products—only to announce shortly thereafter that trade talks were about to resume.  There are vague reports of progress in those talks, but no evidence of meaningful agreement.



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.