back to news & insights


Jun 21, 2023

Opportunity Equity Weekly Update for 6/9/2023 – 6/16/2023

William Keenan

Delta Rises on Quarterly Dividend Resumption while Farfetch Falls Despite Logistics Partnership

Last week, the Opportunity Equity Strategy's representative account gained 2.96%, outperforming the S&P 500’s 2.62% rise. (Exhibit 1). The strategy ended the week up 23.15% YTD, 737 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/16/231
Time Period Opportunity Equity Representative Account S&P 500
Last Week (6/9 - 6/16) 2.96% 2.62%
MTD 11.33% 5.59%
QTD 11.71% 7.71%
YTD 23.15% 15.78%
1 Year 20.96% 22.35%
5 Year 2.20% 11.60%
10 Year 8.79% 12.62%
Inception (annualized since 6/26/00) 6.60% 6.97%

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

During the week, filings revealed that Norwegian Cruise Line Holdings Ltd. (NCLH) insiders including outgoing President and Chief Executive Officer Frank Del Rio sold over $6M of shares. JP Morgan raised its price target to $16 from $15 (-16% downside), maintaining its neutral rating, while Bank of America raised its price target to $19 from $17 (0% upside). Both firms touted a broad improvement in industry-wide business momentum.

Delta Air Lines, Inc. (DAL) announced it would resume its quarterly dividend of $0.10 per share after suspending the dividend due to the Covid-19 pandemic in March 2020. The company highlighted that the resumption is reflective of strong progress on its 2024 financial guidance, including $10B of debt repayment in the past two years.

Alibaba Group Holding Limited (BABA) rose above the 50, 100, and 200-day moving averages. CNBC reported that the company plans to launch Tmall in Europe, while President Michael Evans highlighted the company plans to make the continent a top priority market.

Tech Crunch reported Meta Platforms, Inc. (META) subsidiary Instagram was formally rolling out its new broadcast channel feature, previously unveiled and available to select content collaborators in February. Piper Sandler highlighted its confidence in AI boosting ad impression growth, raising its price target to $310 from $270 (10% upside), while Bank of America raised its price target to $320 from $300 (14% upside).

Barclays highlighted Splunk Inc. (SPLK) as a top pick based on margin expansion potential, reiterating its $130 price target (20% upside).

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 6/9/23 - 6/16/23
Name Type Net Return
Norwegian Cruise Line Holdings Ltd. Equity 11.4%
Delta Air Lines, Inc. Equity 8.9%
Alibaba Group Holding Limited Equity 7.7%
Meta Platforms, Inc. Equity 6.1%
Splunk Inc. Equity 9.2%

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

JP Morgan initiated coverage on Expedia Group, Inc. (EXPE) with a $113 price target (7% upside). Jefferies highlighted its long-term constructive outlook on Expedia’s new OneKey loyalty program set to debut on July 6th, maintaining its $115 price target (9% upside) and neutral rating.

At its 2023 annual general meeting, S4 Capital PLC (SFOR) re-iterated its full year guidance of 8-12% net revenue growth, and Operational EBITDA margins of 15-16% despite a slow start to the year.

Green Thumb Industries Inc. (GTBIF) announced it would open its 82nd retail location in Philadelphia on June 17th, under the RISE Dispensaries brand.

GXO logistics announced it would it expand its relationshop with Farfetch Limited (FTCH) to support Reebok’s European omnichannel logisitics from two warehouses in South Holland.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 6/9/23 - 6/16/23
Name Type Net Return
Expedia Group, Inc. Equity -4.2%
S4 Capital PLC Equity -7.5%
Green Thumb Industries Inc. Equity -3.4%
Farfetch Ltd Equity -2.2%
*New Security* Equity -4.1%

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