Opportunity Equity Weekly Update for 4/19/2024 – 4/26/2024

Alphabet Inc. Reaches a New All-Time High after Announcing Earnings while Meta Falls on Increased CAPEX Guidance

Last week, the Opportunity Equity Strategy's representative account gained 3.83%, outperforming the S&P 500’s 2.68% rise. (Exhibit 1). The strategy ended the week up 8.23% YTD, 85 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 4/26/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (4/19 - 4/26)	3.83%	2.68%
MTD	-3.48%	-2.87%
QTD	-3.48%	-2.87%
YTD	8.23%	7.38%
1 Year	45.63%	27.71%
5 Year	7.78%	13.53%
10 Year	8.44%	12.67%
Inception (annualized since 6/26/00)	7.27%	7.42%

Alphabet Inc. (GOOGL) reached a new all-time high on Friday after reporting strong earnings. The company reported revenue of $67.6B vs. consensus of $65.9B and EBIT of $25.5B (38% operating margin) vs. consensus of $22.1B (34% operating margin). The company initiated a $0.20 quarterly dividend (0.5% yield) and increased their repurchase authorization by $70B to a total of $90B (4% shares outstanding). JP Morgan increased their price target from $165 to $200 (16% upside) while Evercore ISI increased their price target from $160 to $220 (28% upside).

Nvidia Corp. (NVDA) rose through the 50-day moving average on limited news.  

General Motors Co (GM) reached a new 52-week high after reporting strong earnings that beat expectations. The company delivered $2.62 in adjusted EPS vs. consensus of $2.12 while increasing their full year adjusted EPS guidance to $9.00 - $10.00 from $8.50 - $9.50 previously. Barclays increased their price target from $55 to $60 (31% upside) while Citi increased their price target from $95 to $96 (109% upside).

Citigroup Inc. (C) rose on limited news.

Coinbase Global, Inc. (COIN) rose through the 50-day moving average on limited news.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 4/19/24 - 4/26/24

Name	Type	Net Return
Alphabet Inc.	Equity	11.6%
Nvidia Corp	Equity	15.1%
General Motors Co	Equity	8.2%
Citigroup Inc.	Equity	6.0%
Coinbase Global, Inc.	Equity	12.0%

Meta Platforms, Inc. (META) reported strong earnings that beat on both the top and bottom line. The company delivered revenue of $36.5B vs. consensus of $36.1B with EPS of $4.71 vs. consensus of $4.31. The stock fell on elevated CAPEX guidance of $37.5B at the midpoint vs. consensus of $34.5B. JP Morgan decreased their price target from $535 to $480 (8% upside) while UBS decreased their price target from $610 to $575 (30% upside).

S4 Capital plc (SFOR LN) fell on limited news.

UBS Group AG (UBS) continued to fall following Switzerland’s Federal Council’s proposal to increase capital requirements against foreign units. JP Morgan increased their price target from $33.91 to $34.00 (24% upside) while Citi downgraded the name to neutral, decreasing their price target from $32.18 to $29.62 (8% upside).

Morgan Stanley decreased their price target for CVS Health Corp. (CVS) from $92 to $85 (27% upside),

Kosmos Energy Ltd. (KOS) fell through the 50-day moving average on limited news.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 4/19/24 - 4/26/24

Name	Type	Net Return
Meta Platforms, Inc.	Equity	-7.9%
S4 Capital plc	Equity	-7.6%
UBS Group AG	Equity	-2.4%
CVS Health Corp	Equity	-3.7%
Kosmos Energy Ltd.	Equity	-1.7%

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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. 

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