Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

August 2021
Market Update
(all values as of 08.31.2021)

Stock Indices:

Dow Jones 35,360
S&P 500 4,522
Nasdaq 15,259

Bond Sector Yields:

2 Yr Treasury 0.20%
10 Yr Treasury 1.30%
10 Yr Municipal 0.94%
High Yield 4.07%

YTD Market Returns:

Dow Jones 15.53%
S&P 500 20.41%
Nasdaq 18.40%
MSCI-EAFE 9.73%
MSCI-Europe 13.48%
MSCI-Pacific 3.37%
MSCI-Emg Mkt 1.35%
 
US Agg Bond -0.69%
US Corp Bond -0.22%
US Gov’t Bond -0.87%

Commodity Prices:

Gold 1,817
Silver 23.91
Oil (WTI) 68.52

Currencies:

Dollar / Euro 1.17
Dollar / Pound 1.37
Yen / Dollar 109.85
Dollar / Canadian 0.79
 

Portfolio Overview

Ocean Park Investors Fund gained 3.20%* in August.  The S&P 500 rose 2.90% and the NASDAQ Composite rose 4.00%.  As in June and July, the Fund’s consumer and technology stocks propelled our results.  Standouts included Williams-Sonoma (up 23%), Dicks Sporting Goods (up 35%) and Globant (up 35%).

During August, we reduced positions in the consumer discretionary and services sector and largely covered our short positions in the SPY and QQQ ETFs.  We finished the month at about 96% net long, down from about 98% in July.

 

 

 

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

All market sectors except energy gained in August.  Financial stocks led the pack. Growth stocks generally outperformed value stocks, although small-cap growth stocks lagged.

Second quarter corporate earnings reported in August continued the strong trend set in July.  With 91% of S&P 500 companies reporting, 87% beat consensus earnings estimates and 87% beat consensus revenue estimates, in both cases meaningfully above the one-year and five-year averages.  The revenue beat percentage of 87% is the highest since FactSet began tracking that number in 2008.  The blended earnings growth rate came in at 89.3%, significantly better than the analyst consensus of 63% at the beginning of the quarter.

 

 

 

 
Macro Overview

Macro Overview

Economic data reported in August were mixed.  Manufacturing and employment showed gains, while retail sales and durable goods orders declined.  The Commerce Department revised its estimate of second quarter GDP growth up fractionally, from 6.5% annualized to 6.6%.  Inflation continued at an elevated rate.  Consumer confidence as measured by the Conference Board Index sank to a 5-month low, attributed to the rising tide of Delta-variant infections.

Chairman Powell indicated that the Fed could begin to slow its bond-buying program later this year.  But, just as he has carefully managed expectations throughout his tenure, he made clear that any increase in interest rates was not on the horizon.

 

 


 

 

 
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.