UBS Rises on Share Repurchase while United Falls on Delayed Investor Day
Last week, the Opportunity Equity Strategy's representative account declined -2.69%, underperforming the S&P 500’s -0.93% fall. (Exhibit 1). The strategy ended the week up 9.13% YTD, 40 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 4/5/241
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (3/28 - 4/5) | -2.69% | -0.93% |
| MTD | -2.69% | -0.93% |
| QTD | -2.69% | -0.93% |
| YTD | 9.13% | 9.53% |
| 1 Year | 42.65% | 29.24% |
| 5 Year | 8.17% | 14.36% |
| 10 Year | 8.22% | 12.90% |
| Inception (annualized since 6/26/00) | 7.32% | 7.53% |
Source: Bloomberg, Patient Capital Management.
Jefferies raised its price target on Meta Platforms, Inc. (META) to $585 from $550 (11% upside) citing that the company has “too many advantages to count” against advertising technology peers. Wells Fargo lowered its price target to $600 from $609 (14% upside).
The Information reported that Amazon.com, Inc. (AMZN) would phase out it’s “Just Walk Out” grab-and-go self-checkout system in new Amazon Fresh stores.
Seadrill Limited (SDRL) followed oil prices higher over the course of the week.
UBS Group AG (UBS) announced its intention to repurchase up to $2B of shares over the next two years, and for share repurchases to surpass pre-Credit Suisse acquisition levels by 2026.
Reuters reported that Alphabet Inc. (GOOGL) is considering a takeover bid for HubSpot. Earlier in the week, the Financial Times reported that the company is considering charging a subscription for its AI services.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 3/28/24 - 4/5/24
| Name | Type | Net Return |
| Meta Platforms, Inc. | Equity | 8.6% |
| Amazon.com, Inc. | Equity | 2.6% |
| Seadrill Limited | Equity | 5.7% |
| UBS Group AG | Equity | 1.7% |
| Alphabet Inc. | Equity |
1.0% |
Source: Patient Capital Management. See below for additional information.
Coinbase Global, Inc. (COIN) followed bitcoin prices lower over the course of the week. Oppenheimer raised its price target to $276 from $200 (15% upside), while KBW raised its price target to $230 from $160 (-5% downside).
United Airlines Holdings, Inc. (UAL) fell below the 50 and 200-day moving averages after the airline announced it would delay its previously scheduled investor day in the wake of flight safety incidents.
Mizuho initiated on Norwegian Cruise Line Holdings Ltd. (NCLH) with a neutral rating and a $21 price target (11% upside).
Fitch affirmed its BBB- rating on Expedia Group, Inc. (EXPE), maintaining its positive outlook. Wells Fargo lowered its price target to $149 from $155 (13% upside).
Barclays initiated coverage of Crocs, Inc. (CROX) with a $167 price target (25% upside).
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 3/28/24 - 4/5/24
| Name | Type | Net Return |
| Coinbase Global, Inc. | Equity | -9.2% |
| United Airlines Holdings, Inc. | Equity | -9.8% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -9.7% |
| Expedia Group, Inc. | Equity | -4.3% |
| Crocs, Inc. | Equity | -6.8% |
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
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