Energy Transfer Follows Crude Higher while Coinbase Follows Bitcoin Lower
Last week, the Opportunity Equity Strategy’s representative account gained 0.24%, underperforming the S&P 500’s 0.63% gain. (Exhibit 1). The strategy ended the week up 10.17% YTD, 519 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/21/241
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (6/14 - 6/21) | 0.24% | 0.63% |
| MTD | 0.14% | 3.65% |
| QTD | -1.76% | 4.34% |
| YTD | 10.17% | 15.36% |
| 1 Year | 27.16% | 27.08% |
| 5 Year | 9.44% | 15.00% |
| 10 Year | 7.79% | 12.85% |
| Inception (annualized since 6/26/00) | 7.30% | 7.69% |
Source: Bloomberg, Patient Capital Management.
Baird increased their price target for Amazon.com, Inc. (AMZN) from $210 to $213 (13% upside).
Energy Transfer LP (ET) rose through the 50-day and 100-day moving averages, following energy prices higher over the week. The company updated the terms of their acquisition of WTG Midstream. The company is no longer acquiring the 20% interest in the BANGL pipeline, lowering the acquisition price from $3.25B to $3.075B. JP Morgan and Mizuho both increased their price target from $19 to $20 (27% upside).
OneMain Holdings, Inc. (OMF) rose through the 100-day moving average on limited news.
Expedia Group, Inc. (EXPE) rose through the 200-day moving average on limited news.
Norwegian Cruise Line Holdings Ltd. (NCLH) rose through the 50-day and 200-day moving averages, rebounding from the previous week’s decline.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 6/14/24 - 6/21/24
| Name | Type | Net Return |
| Amazon.com, Inc. | Equity | 2.9% |
| Energy Transfer LP | Equity | 3.7% |
| OneMain Holdings, Inc. | Equity | 4.0% |
| Expedia Group, Inc. | Equity | 2.5% |
| Norwegian Cruise Line Holdings Ltd. | Equity | 4.4% |
Source: Patient Capital Management. See below for additional information.
Nvidia Corp (NVDA) sold off from its all-time high on Tuesday. Stifel increased their price target from $114 to $165 (30% upside) and Wells Fargo increased their price target from $125 to $155 (22% upside).
Coinbase Global, Inc. (COIN) fell through the 50-day moving average, following Bitcoin lower.
Biogen Inc. (BIIB) fell on limited news.
PureTech Health plc (PRTC LN) fell through the 100-day moving average on limited news.
Precigen, Inc. (PGEN) fell on limited news.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 6/14/24 - 6/21/24
| Name | Type | Net Return |
| Nvidia Corp | Equity | -4.0% |
| Coinbase Global, Inc. | Equity | -7.6% |
| Biogen Inc. | Equity | -3.3% |
| PureTech Health plc | Equity | -5.7% |
| Precigen, Inc. | Equity | -5.5% |
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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