Opportunity Equity Weekly Update for 7/12/2024 – 7/19/2024

Western Alliance Jumps on Strong Q2 Print while Amazon Hosts a Record-Breaking Prime Day

Last week, the Opportunity Equity Strategy’s representative account fell -0.40%, outperforming the S&P 500’s -1.95% loss. (Exhibit 1). The strategy ended the week up 12.38% YTD, 392 basis points behind the S&P 500.
Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 7/19/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (7/12 - 7/19)	-0.40%	-1.95%
MTD	1.95%	0.88%
QTD	1.95%	0.88%
YTD	12.38%	16.30%
1 Year	16.44%	22.40%
5 Year	9.60%	14.95%
10 Year	8.12%	12.84%
Inception (annualized since 6/26/00)	7.36%	7.70%

Coinbase Global, Inc. (COIN) followed bitcoin higher throughout the week, rising through the 50-day and 100-day moving averages.

IAC Inc. (IAC) rose through the 50-day,100-day, and 200-day moving averages after exploring a bid to potentially acquire Paramount Global.

Western Alliance Bancorporation (WAL) reached a new 52-week high after beating on the top and bottom line, posting revenue of $771.8M vs. 736.5M expected and adjusted EPS of $1.75 vs. $1.71 expected. Net interest income increased to $656.6M, up 10% QoQ and 19% YoY, while net interest margin expanded ~3bps QoQ to 3.63%. The company increased their full year loan growth guidance from $4B to $4.5B and deposit growth guidance from $11B to $14B. JP Morgan increased their price target from $80 to $100 (30% upside) and Bank of America increased their price target from $82 to $100. (28% upside)

United Airlines Holdings, Inc. (UAL) rose after announcing a profitability surprise, delivering free cash flow of $1.7B vs. $1.0B expected and adjusted EPS of $4.14 vs. $3.93 expected. The company increased their full year adjusted EPS guidance from $10 at the midpoint to $10.05 and now expects 2024 CAPEX to be less than $6.5B vs. prior guidance of $6.5B. JP Morgan increased their price target from $98 to $100 (109% upside). 

Expedia Group, Inc. (EXPE) rose on limited news.  

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 7/12/24 - 7/19/24

Name	Type	Net Return
Coinbase Global, Inc.	Equity	18.2%
IAC Inc.	Equity	6.1%
Western Alliance Bancorporation	Equity	14.0%
United Airlines Holdings, Inc.	Equity	7.2%
Expedia Group, Inc.	Equity	3.2%

Amazon.com, Inc. (AMZN) fell through the 50-day and 100-day moving averages despite announcing the company had its single largest day of sales during its prime day. Goldman Sachs increased their price target from $225 to $250 (37% upside).

Nvidia Corp (NVDA) fell on limited news.

Alphabet Inc. (GOOGL) fell through the 50-day moving average on limited news. Deutsche Bank increased their price target from $190 to $195 (10% upside).

Canada Goose Holdings Inc. (GOOS) fell through the 50-day, 100-day, and 200-day moving averages after China reported softer than expected GDP and retail sales growth of 4.7% vs. 5.1% expected and 2.0% vs. 3.3% expected, respectively. TD Cowen initiated coverage with a $15.34 price target (26% upside).

Meta Platforms, Inc. (META) fell through the 50-day and 100-day moving averages on limited news. UBS increased their price target from $575 to $630. (32% upside).

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 7/12/24 - 7/19/24

Name	Type	Net Return
Amazon.com, Inc.	Equity	-5.8%
Nvidia Corp	Equity	-8.8%
Alphabet Inc.	Equity	-4.0%
Canada Goose Holdings Inc.	Equity	-6.9%
Meta Platforms, Inc.	Equity	-4.4%

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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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