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August 2019

Market Update

(all values as of 08.31.2023)

Stock Indices:

Dow Jones	34,721
S&P 500	4,507
Nasdaq	14,034

Bond Sector Yields:

2 Yr Treasury	4.85%
10 Yr Treasury	4.09%
10 Yr Municipal	2.87%
High Yield	8.27%

YTD Market Returns:

Dow Jones	4.75%
S&P 500	17.40%
Nasdaq	34.09%
MSCI-EAFE	8.50%
MSCI-Europe	9.83%
MSCI-Pacific	6.17%
MSCI-Emg Mkt	2.50%

US Agg Bond	1.37%
US Corp Bond	2.76%
US Gov’t Bond	1.53%

Commodity Prices:

Gold	1,966
Silver	24.82
Oil (WTI)	83.60

Currencies:

Dollar / Euro	1.08
Dollar / Pound	1.26
Yen / Dollar	146.14
Canadian /Dollar	0.73

Fund Overview

Equities slumped in August, as did the Ocean Park funds. Losses were broad but not deep, as most sectors retreated in the low single-digits. Notwithstanding the August decline, we continue to lead the HFRI Equity Hedge Index which is up 7.77% for the year to date.

During August, we added to positions in the consumer staples, materials and processing, and health care sectors, and reduced positions in the autos and transportation, consumer discretionary and service, and technology sectors. We ended the month at about 93% net long, up from about 91% in July.

A schedule showing the performance of the Investors Fund is included below, along with our Asset Allocation Chart. 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 - August 2019

Equity Overview

Volatility spiked in August, as 11 of 22 trading days saw gains or losses above 1%. Growth stocks outperformed value stocks, but both categories were down. Among the sectors, utilities had the best gains and energy stocks had the worst losses. The forward 12-month price-earnings ratio for the S&P 500 fell to 16.6, just a touch above the 5-year average of 16.5.

Second quarter corporate earnings reported in August were unremarkable. With 99% of S&P 500 companies reporting, the blended growth rate is now -0.4%, modestly better than the -1.0% rate in July. 75% of companies have beaten consensus earnings estimates (slightly below the one-year average of 76%), but only 56% have beaten consensus revenue estimates, below the one-year average of 63%.

Macro Overview - August 2019

Macro Overview

Economic data reported in August was mixed. The Commerce Department revised second quarter GDP growth downward slightly from 2.1% to 2.0%. Employment was steady. Manufacturing was weak, as the preliminary IHS Markit Purchasing Managers Index fell to its lowest level since September 2009.

Bonds gained ground as interest rates fell. The 10-year US Treasury yield closed the month at 1.506%, close to the all-time low of 1.36% in 2016.

On the international front, the trade war with China continued unresolved as messaging from the U.S. government alternated between intransigence and conciliation. Brexit remained in stalemate as Britain’s new prime minister Boris Johnson vowed to leave the European Union on October 31 even without a deal, while Parliament voted to forbid a no-deal exit.

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.