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Mar 25, 2024

Opportunity Equity Weekly Update for 3/15/2024 – 3/22/2024

William Keenan

Alphabet Rises on AI iPhone Integration while Precigen Falls on Downgrade

Last week, the Opportunity Equity Strategy's representative account rose 4.03%, outperforming the S&P 500’s 2.31% rise. (Exhibit 1). The strategy ended the week up 10.08% YTD, 4 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 3/22/241

Time Period Opportunity Equity Representative Account S&P 500
Last Week (3/15 - 3/22) 4.03% 2.31%
MTD 4.41% 2.81%
QTD 10.08% 10.12%
YTD 10.08% 10.12%
1 Year 47.70% 35.06%
5 Year 9.28% 15.24%
10 Year 8.03% 12.95%
Inception (annualized since 6/26/00) 7.38% 7.57%
Source: Bloomberg, Patient Capital Management.

Alphabet Inc. (GOOGL) rose above the 50-day moving average after Bloomberg reported that the company was in talks with Apple to integrate its Gemini artificial intelligence engine into the iPhone.

Oppenheimer lowered its price target on Citigroup Inc. (C) to $88 from $95 (45% upside).

Raymond James raised its price target on Crocs, Inc. (CROX) to $164 from $145 (16% upside), while Keybanc raised its price target to $149 from $130 (5% upside).

Delta Air Lines, Inc. (DAL) rose on limited news.

General Motors Company (GM) rose on limited news.

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 3/15/24 - 3/22/24

Name Type Net Return
Alphabet Inc. Equity 6.8%
Citigroup Inc. Equity 5.6%
Crocs, Inc. Equity 10.5%
Delta Air Lines, Inc. Equity 5.7%
General Motors Company Equity

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

Bloomberg reported that UBS Group AG (UBS) plans to close legacy Credit Suisse accounts numbering in the low thousands in its Asia Pacific division on which it earns an insufficient return on capital.

Alibaba Group Holding Ltd. (BABA) fell below the 50-day moving average. Filings revealed that Alibaba raised ~$360M by selling 30.85M shares of Chinese video streaming business Bilibili at $11.60 per share.

Precigen, Inc. (PGEN) fell after JP Morgan downgraded the shares to underweight from neutral, citing growing financing pressures.

Canada Goose Holdings Inc. (GOOS) fell through the 100-day moving average.

Peloton Interactive, Inc (PTON) fell on limited news.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 3/15/24 - 3/22/24

Name Type Net Return
Canada Goose Holdings Inc. Equity -4.3%
UBS Group AG Equity -2.2%
Alibaba Group Holding Ltd. Equity -1.8%
Peloton Interactive, Inc. Equity -2.8%
Precigen, Inc. Equity -2.4%
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