Sutton Place Capital Management LLC

New York, New York

April 9, 2021

S&P 500: 4,104.75

VIX: 17.21

Ten Year note: 1.63%

Crude Oil: $63.20

Gold: $1,758.20

“Newness, newness, newness”

The U.S. government authorized another tremendous stimulus package,

expanded spending programs, and broadened the eligibility for the COVID-19 vaccine.

This all fuels an optimistic outlook for people getting back to work and for providing an

economic rebound. The SPCM composite had its third best performance for the first

quarter outperforming the benchmark in 12 years. Over the last 12 months the world

has changed beyond recognition. But now we are planning, reinforced by U.S. GDP

annual estimates for growth of 6-8% for the current year. The fiscal support and SPCM

track record, in my opinion, suggests investing more money into the stock market. The

current situation is very good, oil is holding at $60 which is high but not as high for the

last 3 years, and the long-term bond yields are starting to rise as the Federal Reserve

suggested but the 10-year Treasury note at 1.63% has retreated from a high of 1.75%.

Overseas exports are also improving.

For the first quarter, traditional cyclical sectors, Energy and Financials,

continued to be the top performing sectors. And some traditionally high P/E holdings

and alpha contributors underperformed, such as ServiceNow, probably as institutional

money managers likely booked profits. The technology sector has been a stalwart

contributor to the SPCM composite’s performance. Given the growth in the holdings

since SPCM was founded in 2009, some equity holdings with more Price than Earnings

have been eliminated, such as Splunk. The dip in tech names allowed me to fill-in

holdings. For the first quarter, two names were added. US Bancorp/USB based in

Minneapolis, Minnesota, is one of the largest commercial banks operating

predominantly in the U.S. The purchase allows for SPCM’s financial holdings to be

overweight versus the benchmarks’ financial allocation. The second holding is Zoetis

Inc/ZTS, the largest global animal health company. There has been a lot of talk about

reopening trades but they are just that, trades. Investing is not trading, but investing in

a company such as ZTS which kept part of its business going during the pandemic and

now has another engine to “kick-in” during the reopening, is investing. The top equity

contributors were CVS Health Corp, EOG Resources and Delta Airlines. For a variety of

reasons (price target attained, tactical trade and capital recuperation), these names were

sold during the first quarter. The laggards included Barrick Gold Corporation,

Docusign, and Alexandria REIT, all names that remain integral positions for clients.

At the time of this writing, the P/E multiple on forward S&P earnings of $175.54

for 2021 is 23.3 times. According to FactSet, the estimated earnings growth rate for S&P

500 is 24.5% year over year (YoY), and earnings growth rate estimates have increased

substantially since December 31 st , 2020 (15.8%). One sector that may be increased is

consumer discretionary given the massive fiscal support. The stock market has had a

marvelous run since 2008 and the next step may be to put some of the monies in cash.

Should the interest rates increase as expected and balance sheets improve as work flow

rebounds; opportunities may arise to layer in bond holdings with a respectable yield.

Warmest regards,

Maribeth Holland

Chief Investment Officer

(646) 401-2780

Information and opinions presented in this email are provided for informational purposes only and are not to be used

or considered as an offer or solicitation of an offer to buy or sell securities or other financial instruments. Sutton Place

Capital Moment (“SPCM”) has not taken any steps to ensure that the advice referred to in this report are suitable for

you and it is recommended that you consult an accountant if you are in doubt about any such advice. Information and

opinions presented in this report have been obtained or derived from sources believed by SPCM to be reliable, but

SPCM makes no representation as to their accuracy, timeliness or completeness. SPCM accepts no liability for loss

arising from the use of the information presented in this report. Past performance should not be taken as an

indication or guarantee of future performance.