Opportunity Equity Weekly Update for 4/5/2024 – 4/12/2024

Alphabet Reaches an All-Time High on Chip Announcement while UBS falls on Swiss Banking Reform

Last week, the Opportunity Equity Strategy's representative account declined -2.51%, underperforming the S&P 500’s -1.52% fall. (Exhibit 1). The strategy ended the week up 6.38% YTD, 148 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 4/12/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (4/5 - 4/12)	-2.51%	-1.52%
MTD	-5.13%	-2.44%
QTD	-5.13%	-2.44%
YTD	6.38%	7.86%
1 Year	38.25%	27.19%
5 Year	7.83%	13.88%
10 Year	8.46%	13.02%
Inception (annualized since 6/26/00)	7.20%	7.45%

Alphabet Inc. (GOOGL) reached a new all-time high after announcing their plans to debut an ARM-based computer chip. This could help reduce their reliance on chipmakers and strengthen their position within the AI race.

Kosmos Inc. (KOS) rose through the 100-day moving average. Bernstein reduced their price target from $7.00 to $6.90 (11% upside) while maintaining a market perform rating.

S4 Capital plc (SFOR LN) continued to rise on takeover interest.

Delta Air Lines, Inc. (DAL) rose after announcing a revenue and adjusted EPS surprise, coming in at $12.56B in revenue vs. consensus of $12.50B and $0.45 in adjusted EPS vs. consensus of $0.36. The company laid out second quarter adjusted EPS guidance in line with consensus at $2.35 per share but guided for revenue ahead of consensus at $16.50B vs. $15.50B expected. Deutsche Bank maintained their buy rating and increased their price target from $50 to $60 (28% upside).

Coinbase Global, Inc. (COIN) followed bitcoin prices higher throughout the week. Piper Sandler increased their price target from $225 to $245 (0% upside).

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 4/5/24 - 4/12/24

Name	Type	Net Return
Alphabet Inc.	Equity	2.9%
Kosmos Energy Ltd.	Equity	5.6%
S4 Capital plc	Equity	7.8%
Delta Air Lines, Inc.	Equity	1.2%
Coinbase Global, Inc.	Equity	2.0%

IAC Inc. (IAC) fell through the 100-day moving average on limited news.  

UBS Group AG (UBS) fell through the 50-day and 100-day moving average after Switzerland’s Federal Council proposed the country’s systemically important banks must hold significantly more capital against their foreign units. 

OneMain Holdings, Inc (OMF) fell through the 50-day and 100-day moving average on limited news.

Crocs, Inc. (CROX) fell on limited news. B Riley increased their price target from $95 to $122 (-3% downside) while maintaining a neutral rating.

Citigroup Inc. (C) fell despite announcing a revenue and adjusted EPS surprise, coming in at $21.1B in revenue versus consensus of $20.4B and $1.74 in adjusted EPS vs. consensus of $1.23. The company reiterated 2024 revenue guidance in line with consensus at $80.5B. Goldman Sachs maintained their buy rating but lowered their price target from $69 to $68 (14% upside)


Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 4/5/24 - 4/12/24

Name	Type	Net Return
IAC Inc.	Equity	-7.4%
UBS Group AG	Equity	-7.9%
OneMain Holdings, Inc.	Equity	-4.5%
Crocs, Inc.	Equity	-6.4%
Citigroup Inc.	Equity	-3.4%

---

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