back to news & insights


Jun 05, 2023

Opportunity Equity Weekly Update for 5/26/2023 – 6/2/2023

William Keenan

SoFi Rises on End of Student Loan Moratorium while Teva Declines on Rating Outlook Downgrade

Last week, the Opportunity Equity Strategy's representative account gained 5.19%, outperforming the S&P 500’s 1.88% rise. (Exhibit 1). The strategy ended the week up 16.44% YTD, 407 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/2/231
Time Period Opportunity Equity Representative Account S&P 500
Last Week (5/26 - 6/2) 5.19% 1.88%
MTD 5.27% 2.48%
QTD 5.63% 4.53%
YTD 16.44% 12.37%
1 Year -7.39% 4.32%
5 Year 2.94% 11.32%
10 Year 7.98% 12.27%
Inception (annualized since 6/26/00) 6.35% 6.84%

Source: Bloomberg, Patient Capital Management. Visit the Strategy page for Opportunity Equity performance through the most current month end period.

SoFi Technologies, Inc. (SOFI) rose through the 50, 100, and 200-day moving averages after the United States House of Representatives reached an agreement on extending the Federal debt limit, which included an end to the Covid-era student loan servicing moratorium.

OneMain Holdings, Inc. (OMF) rose through the 100-day moving average. The company was ordered to pay $20M to settle allegations from United States Consumer Financial Protection Bureau alleging that the company misled borrowers into signing up for optional products and improperly retaining an extra $10M in interest charges.

Expedia Group, Inc. (EXPE) rose through the 100 and 200-day moving averages. On Friday, filings revealed that OpenAI CEO Samuel Altman had resigned from the Board of Directors, and was replaced by Alexandr Wang, founder and CEO of Scale AI.

Norwegian Cruise Line Holdings Ltd. (NCLH) rose through the 200-day moving average. Citi highlighted that in a recent interview with the company, management reiterated its commitment to delevering the balance sheet, and their expectations to not issue additional debt or equity to fund the business.

Coinbase Global, Inc. (COIN) rose above the 50, 100, and 200-day moving averages. Atlantic Equities upgraded the name to overweight from neutral with a $70 price target (7% upside).

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 5/26/23 - 6/2/23
Name Type Net Return
SoFi Technologies, Inc. Equity 29.9%
OneMain Holdings, Inc. Equity 7.5%
Expedia Group, Inc. Equity 7.2%
Norwegian Cruise Line Holdings Ltd. Equity 9.0%
Coinbase Global, Inc. Equity 13.4%

Source: Patient Capital Management. See below for additional information.

Teva Pharmaceutical Industries Limited (TEVA) declined after Standard & Poors downgraded the company’s credit outlook to stable from positive, maintaining its long-term rating of BB-.

There were no other detractors from performance last week.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 5/26/23 - 6/2/23
Name Type Net Return
Teva Pharmaceutical Industries Limited Equity -3.1%

Source: Patient Capital Management. See below for additional information.

As of prior week's market close unless otherwise stated.

1The performance figures for the representative Opportunity Equity account reflect the deduction investment management fees and certain other expenses. Returns greater than 1 year are annualized.

Patient Capital Management, LLC completed its acquisition of the Opportunity Equity Strategy from Miller Value Partners, LLC on May 26, 2023. Patient Capital Management served as the investment adviser to the Opportunity Equity Strategy for the majority of the week referenced herein. Additionally, prior versions of this weekly blog posting refer to Miller Value Partners as investment adviser to the Opportunity Equity Strategy.

For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance Disclosure. Past performance is no guarantee of future results.

2Significant Contributors and Detractors are based on holdings that had the greatest effect on representative account performance for the week. Holdings that have been in the portfolio since the end of the most recent calendar quarter are identified by name. The net return shown above for each individual security represents the change in market price of the security during the week, according to a third-party pricing service, or for the partial period held in the portfolio during the week.  Net returns also include any purchases or sales that were made during the week. For information on how Contributor/Detractor data were calculated and a list showing the contribution to the Strategy’s weekly performance of each investment held at such quarter end, contact us.

Any views expressed are subject to change at any time, and Patient Capital Management disclaims any responsibility to update such views. There is no guarantee that market trends discussed herein will continue. The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. Past performance is no guarantee of future results, and there is no guarantee dividends will be paid or continued. References to specific securities are for illustrative purposes only. Portfolio composition is shown as of a point in time and is subject to change without notice. Content may not be reprinted, republished or used in any manner without written consent from Patient Capital Management. 

©2023 Patient Capital Management, LLC