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Jun 04, 2024

Opportunity Equity Strategy Update for 5/24/2024 - 5/31/2024

Finn McGinnis

UBS Rises on Merger Completion while Coinbase Follows Bitcoin Lower

Last week, the Opportunity Equity Strategy's representative account gained 1.01%, outperforming the S&P 500’s -0.49% loss. (Exhibit 1). The strategy ended the week up 10.02% YTD, 128 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 5/31/241

Time Period Opportunity Equity Representative Account S&P 500
Last Week (5/24 - 5/31) 1.01% -0.49%
MTD 3.62% 4.96%
QTD -1.89% 0.67%
YTD 10.02% 11.30%
1 Year 38.84% 28.19%
5 Year 11.60% 15.80%
10 Year 8.17% 12.69%
Inception (annualized since 6/26/00) 7.31% 7.55%
Source: Bloomberg, Patient Capital Management.

JP Morgan lowered their price target on CVS Health Corp (CVS) from $101 to $86 (44% upside)

Crocs, Inc. (CROX) rose on limited news. 

Kosmos Energy Ltd. (KOS) rose through the 50-day and 100-day moving average despite Brent’s -0.94% move lower over the week.

Peloton Interactive, Inc. (PTON) rose after successfully completing their convertible note offering and term loan refinancing.

UBS Group AG (UBS) jumped 2% on Friday after announcing their completion of the Credit Suisse merger.

Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 5/24/24 - 5/31/24

Name Type Net Return
CVS Health Corp  Equity 7.4%
Crocs, Inc.  Equity 4.5%
Kosmos Energy Ltd.  Equity 5.2%
 Peloton Interactive, Inc. Equity 15.6%
UBS Group AG  Equity

Source: Patient Capital Management. See below for additional information., Inc. (AMZN) fell on limited news.

Alibaba Group Holding Ltd (BABA) fell through the 200-day moving average, following the Hang Seng lower for the second straight week. 

Citigroup Inc. (C) fell on limited news.

Coinbase Global, Inc. (COIN) followed bitcoin lower throughout the week.

Meta Platforms, Inc. (META) fell on limited news.

Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 5/24/24 - 5/31/24

Name Type Net Return, Inc. Equity -2.4%
 Alibaba Group Holding Ltd Equity -3.6%
Citigroup Inc.  Equity -2.0%
 Coinbase Global, Inc. Equity -4.9%
Meta Platforms, 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. 

©2024 Patient Capital Management, LLC