General Motors Rises on Buyback Authorization while OneMain Falls on Elevated Delinquencies
Last week, the Opportunity Equity Strategy’s representative account fell -1.26%, underperforming the S&P 500’s 1.62% gain. (Exhibit 1). The strategy ended the week up 9.90% YTD, 473 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/14/241
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (6/7 - 6/14) | -1.26% | 1.62% |
| MTD | -0.11% | 3.00% |
| QTD | -1.99% | 3.69% |
| YTD | 9.90% | 14.63% |
| 1 Year | 24.66% | 26.12% |
| 5 Year | 10.01% | 15.36% |
| 10 Year | 7.91% | 12.94% |
| Inception (annualized since 6/26/00) | 7.30% | 7.67% |
Source: Bloomberg, Patient Capital Management.
Nvidia Corp (NVDA) reached a new all-time high on Friday following the company’s 10 – 1 stock split earlier in the week. Evercore ISI increased their price target from $131 to $145 (10% upside) and Goldman Sachs increased their target from $120 to $135 (2% upside).
Crocs, Inc. (CROX) reached a new 52-week high on limited news.
Meta Platforms, Inc. (META) gained in the week as AI names continued to lead.
General Motors Co (GM) reached a new 52-week high after the company’s board approved a new $6.0B share repurchase authorization (~11% of the company’s market cap). The company also announced their plans to complete the remaining ~$1.1B from their prior authorization in 2Q 2024 (~2% of the company’s market cap).
Biogen Inc. (BIIB) rose in sympathy with Eli Lilly following the Peripheral and Central Nervous System Drugs Advisory Committee (AdCom) voted unanimously in favor of approval. We await the FDA’s final decision.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 6/7/24 - 6/14/24
| Name | Type | Net Return |
| Nvidia Corp | Equity | 9.1% |
| Crocs, Inc. | Equity | 6.8% |
| Meta Platforms, Inc. | Equity | 2.4% |
| General Motors Co | Equity | 2.3% |
| Biogen Inc. | Equity | 2.8% |
Source: Patient Capital Management. See below for additional information.
Citigroup Inc. fell through the 100-day moving average on limited news.
Norwegian Cruise Line Holdings Ltd. (NCLH) fell through the 50-day and 200-day moving average after a Bank of America survey cited softer cruise line pricing in June versus May.
The chief accounting officer of IAC Inc. (IAC), Eric Bradbury, announced his resignation from the company.
OneMain Holdings, Inc. fell through the 100-day moving average after the company announced a modest m/m increase in early-stage delinquencies and net charge offs.
United Airlines Holdings, Inc. fell through the 50-day moving average after May’s CPI print announced airfares were down -5.9% YoY and -3.6% m/m.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 6/7/24 - 6/14/24
| Name | Type | Net Return |
| Citigroup Inc. | Equity | -4.0% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -6.9% |
| IAC Inc. | Equity | -4.3% |
| OneMain Holdings, Inc. | Equity | -4.0% |
| United Airlines Holdings, Inc. | Equity | -5.7% |
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
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