Oil Plummeted today on the outcome of the OPEC meeting. Member nations agreed to extend production cuts for a further 9 months. While this still comes as good news to world producers, investor sentiment had gotten a little greedy. Investors were expecting the extension to be at least one year longer, and for production cuts to be deepened. Cuts as they are now are just production levels at 2015, leaving most OPEC member nations at historically high production levels. Still, it was a little much to expect. Oil prices should recover as investors come to that same conclusion.
Our portfolio was dragged down today entirely on the fall in oil prices – SDLP suffered to the tune of 5% market capitalization loss. Again, we’re expecting that to normalize, the news was on the positive side of neutral in our opinion.
In other market news, SNAP was up strongly today – 2% at close. Due to the nature of that position we have no plans to make any moves before late August, though it is safe to say that we’re expecting good things. Our target return is currently a robust 8.5% for the three month holding period.