Amazon Rises on Strong Retail Sales Report while Precigen Reiterates BLA Submission Plans
Last week, the Opportunity Equity Strategy’s representative account gained 4.65%, outperforming the S&P 500’s 3.99% rise. (Exhibit 1). The strategy ended the week up 9.99% YTD, 748 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 8/16/241
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (8/9 - 8/16) | 4.65% | 3.99% |
| MTD | -3.13% | 0.67% |
| QTD | -0.22% | 1.89% |
| YTD | 9.99% | 17.47% |
| 1 Year | 26.09% | 28.00% |
| 5 Year | 10.43% | 15.83% |
| 10 Year | 8.10% | 13.07% |
| Inception (annualized since 6/26/00) | 7.24% | 7.72% |
Source: Bloomberg, Patient Capital Management.
Nvidia Corp (NVDA) rose through the 50-day moving average on limited news.
Amazon.com, Inc. (AMZN) rose through the 200-day moving average. The Fed reported strong retail sales estimates for July, up 1.1% MoM and 2.6% YoY. This would be the largest MoM increase since January 2023.
Citigroup Inc. (C) rose throughout the week on mixed consumer credit card reports. Jefferies reported that net charge-offs (NCOs) continued to improve for the fourth consecutive month, declining 12bps MoM (+1.16% YoY). However, DQs increased 10bps MoM after 6 months of declines (+0.42% YoY).
S4 Capital plc (SFOR LN) and QXO, Inc. (QXO) both rose on limited news.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 8/9/24 - 8/16/24
| Name | Type | Net Return |
| Nvidia Corp | Equity | 18.9% |
| QXO, Inc. | Equity | 13.1% |
| Amazon.com, Inc. | Equity | 6.1% |
| Citigroup Inc. | Equity | 6.2% |
| S4 Capital plc | Equity | 18.4% |
Source: Patient Capital Management. See below for additional information.
Alphabet Inc. (GOOGL) hosted their ninth annual Made by Google event. The company introduced their new pixel line of phones, smartwatch, and wireless headphones. The company also introduced new AI features, including a personalized Gen AI live assistant across android devices.
Precigen, Inc. (PGEN) fell after reporting revenue of $0.7M vs. $1.6M expected and adjusted EPS of -$0.23 vs. -$0.10 expected. The company reiterated their plan to submit to the Biologics License Applications (BLA) in 2H24 for PRGN-2012, their recurrent respiratory papillomatosis (RRP) treatment. Stifel lowered their price target from $10 to $7 and JMP lowered their price target from $14 to $7 (542% upside).
Seaport Global raised their price target on Green Thumb Industries Inc. (GTBIF) from $20 to $21 (88% upside).
Dave & Buster's Entertainment, Inc. (PLAY) and Biogen Inc. (BIIB) both fell on limited news.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 8/9/24 - 8/16/24
| Name | Type | Net Return |
| Alphabet Inc. | Equity | -0.4% |
| Precigen, Inc. | Equity | -0.9% |
| Green Thumb Industries Inc. | Equity | -0.4% |
| Dave & Buster's Entertainment, Inc. | Equity | -0.3% |
| Biogen Inc. | Equity | -0.0% |
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
Share