back to news & insights


Sep 18, 2023

Opportunity Equity Strategy Update for 9/8/2023 - 9/15/2023

William Keenan

Citi Rises on Corporate Reorganization while United Falls with Broader Sector

Last week, the Opportunity Equity Strategy's representative account  gained 0.58%, outperforming the S&P 500’s -0.12% decline. (Exhibit 1). The strategy ended the week up 23.19% YTD, 589 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 9/15/231

Time Period Opportunity Equity Representative Account S&P 500
Last Week (9/8 - 9/15) 0.58% -0.12%
MTD -1.17% -1.20%
QTD -1.76% 0.35%
YTD 23.19% 17.30%
1 Year 6.52% 16.02%
5 Year 0.97% 10.80%
10 Year 7.65% 12.29%
Inception (annualized since 6/26/00) 6.53% 6.95%
Source: Bloomberg, Patient Capital Management.

PureTech Health PLC (PRTC) rose above the 50, 100, and 200-day moving averages.

Citigroup Inc. (C) rose after CEO Jane Fraser announced a large-scale reorganization of the bank’s senior management around 5 major businesses including Services, Markets, Banking, US Personal Banking, and Global Wealth. Wells Fargo highlighted that this organizational restructuring eliminated 35 individual committees alone, which should help to streamline Citi’s global coordination efforts. Fitch affirmed Citi’s A credit rating and stable outlook.

OneMain Holdings, Inc. (OMF) rose above the 200-day moving average. OneMain reported August trust data that showed net charge-offs (NCOs) down -31bps M/M to 3.91%. Early-stage delinquencies (DQs) of 1.08% declined 15bps sequentially, while late-stage delinquencies of 1.33% fell 6bps sequentially. Jefferies highlighted that NCOs continue to track in-line with management guidance of 7-7.5%.

Norwegian Cruise Line Holdings Ltd. (NCLH) rose after Redburn upgraded the name to buy with a $25 price target (45% upside).

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 9/8/23 - 9/15/23

Name Type Net Return
PureTech Health PLC Equity 15.1%
Citigroup, Inc. Equity 5.2%
*New Security* Equity 7.6%
OneMain Holdings, Inc. Equity 3.1%
Norwegian Cruise Line Holdings Ltd. Equity 5.7%
Source: Patient Capital Management. See below for additional information.

United Airlines Holdings, Inc. (UAL) fell along with the broader airline sector after American Airlines lowered its 3Q 2023 guidance to $0.25 at the midpoint from $0.90 at the midpoint previously on higher-than-expected capacity and fuel costs.

Alibaba Group Holding Limited (BABA) fell below the 100-day moving average after former CEO and Head of Alibaba Cloud Daniel Zhang resigned in a move that surprised investors. Zhang’s successor as CEO, Eddie Wu, in a letter to staff reported by Dow Jones outlined the company’s two core strategic focuses as “user first” and “AI-driven.”

Deutsche Bank lowered its price target on Peloton Interactive, Inc. (PTON) to $13 from $20 (158% upside).

Expedia Group, Inc. (EXPE) and Precigen, Inc. (PGEN) fell on limited news.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 9/8/23 - 9/15/23

Name Type Net Return
Expedia Group, Inc. Equity -2.6%
United Airlines Holdings, Inc. Equity -3.7%
Alibaba Group Holding Limited Equity -3.3%
Peloton Interactive, Inc. Equity -7.5%
Precigen, Inc.  Equity -8.0%
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