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Jan 03, 2024

Opportunity Equity Weekly Update for 12/22/2023 – 12/29/2023

William Keenan

PureTech Continues to Rise on Karuna Acquisition while Travel Names Decline on Limited News

Last week, the Opportunity Equity Strategy's representative account declined -0.33%, underperforming the S&P 500’s 0.34% rise. (Exhibit 1). The strategy ended the week up 39.59% YTD, 1,330 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 12/29/231

Time Period Opportunity Equity Representative Account S&P 500
Last Week (12/22 - 12/29) -0.33% 0.34%
MTD 13.24% 4.54%
QTD 18.11% 11.69%
YTD 39.59% 26.29%
1 Year 39.48% 25.97%
5 Year 10.14% 15.89%
10 Year 7.64% 12.08%
Inception (annualized since 6/26/00) 7.01% 7.20%
Source: Bloomberg, Patient Capital Management.

PureTech Health PLC (PRTC LN) continued to rise after its founded entity, Karuna Therapeutics, agreed to be acquired by Bristol Myers Squibb.

Precigen, Inc. (PGEN) rose above the 100-day moving average. On Friday, the company filed for a $300M mixed securities shelf offering.

The Wall Street Journal reported Alibaba Group Holding Limited (BABA) lost an antimonopoly suit against competitor in China, resulting in a $140.7M fine.

Green Thumb Industries Inc. (GTBIF) and S4 Capital PLC (SFOR LN) rose on limited news.

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 12/22/23 - 12/29/23

Name Type Net Return
PureTech Health PLC Equity 6.7%
Green Thumb Industries Inc. Equity 6.5%
S4 Capital PLC Equity 7.7%
Precigen, Inc. Equity 6.3%
Alibaba Group Holding Limited Equity

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

Ascendiant Capital raised its price target on Expedia Group, Inc. (EXPE) to $168 from $133 (11% upside).

United Airlines Holdings Inc. (UAL) announced that Director, Captain Garth Thompson would resign from the board effective February 29th, 2024.

Norwegian Cruise Line Holdings Ltd. (NCLH) and Delta Air Lines, Inc. (DAL) fell on limited news.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 12/22/23 - 12/29/23

Name Type Net Return
Expedia Group, Inc. Equity -2.3%
Norwegian Cruise Line Holdings Ltd.  Equity -4.3%
*New Security*  Equity -4.6%
Delta Air Lines, Inc. Equity  -2.2%
United Airlines Holdings, Inc  Equity -3.0%
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