Opportunity Equity Weekly Update for 9/6/2024 – 9/13/2024

Nvidia Gains on Continued Strong Demand While Citigroup Fell on Higher Costs

Last week, the Opportunity Equity Strategy’s representative account gained 3.86%, underperforming the S&P 500’s 4.06% rise. (Exhibit 1). The strategy ended the week up 10.68% YTD, 845 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 9/13/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (9/6 - 9/13)	3.86%	4.06%
MTD	-2.16%	-0.33%
QTD	0.41%	3.33%
YTD	10.68%	19.13%
1 Year	26.18%	27.80%
5 Year	8.57%	15.19%
10 Year	7.81%	13.03%
Inception (annualized since 6/26/00)	7.25%	7.76%

Nvidia Corp (NVDA) rose through the 50-day and 100-day moving averages. Jensen Huang, CEO, spoke at Goldman Sach’s technology conference. He called out continued strong demand from customers particularly for their new AI chip known as Blackwell.

Amazon.com, Inc. (AMZN) rose through the 50-day, 100-day, and 200-day moving averages. Matt Garman, CEO of AWS spoke at Goldman Sach’s technology conference. He called out the massive opportunity to expand cloud service offerings to customers while noting that conversations have shifted from how to optimize costs to how to utilize tools to grow their business.

Norwegian Cruise Line Holdings (NCLH) rose through the 50-day, 100-day, and 200-day moving averages. Mizuho continued to highlight NCLH as one of their best non-consensus ideas for the year while increasing their price target from $25 to $26 (35% upside).

United Airlines Holdings, Inc. (UAL) rose through the 100-day moving average on limited news.

SoFi Technologies, Inc. (SOFI) rose through the 50-day, 100-day, and 200-day moving averages. Anthony Noto, CEO, spoke at Goldman Sach’s technology conference. He expects to see continued growth across the company’s financial services platform and reiterated their 80% YoY growth guidance for the segment. 

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 9/6/24 - 9/13/24

Name	Type	Net Return
Nvidia Corp	Equity	15.8%
Amazon.com, Inc.	Equity	8.8%
Norwegian Cruise Line Holdings Ltd.	Equity	14.0%
United Airlines Holdings, Inc.	Equity	9.1%
SoFi Technologies, Inc.	Equity	10.4%

S4 Capital plc (SFOR LN) fell through the 200-day moving average on limited news.

Citigroup Inc. (C) fell through the 200-day moving average. The company presented at an industry conference, reiterating their 2024 revenue and expense outlook. However, Citi expects expenses to come in at the higher end of their guided range from hiring costs and repositioning expenses. The company also forecasted higher third quarter cost of credit due to increased new card growth. The company expects to complete $1B in buybacks in 3Q. Goldman Sachs lowered their price target from $75 to $71 (23% upside) but maintained their buy rating.

Royalty Pharma plc (RPRX) fell through the 50-day and 200-day moving averages on limited news.  

Kosmos Energy Ltd. (KOS) and Brent both reached a new 52-week low last Tuesday.

General Motors Co (GM) and Hyundai Motor Co. signed a memorandum of understanding to explore joint product development, improve supply chain scaling, and pursue clean energy technologies.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 9/6/24 - 9/13/24

Name	Type	Net Return
S4 Capital plc	Equity	-11.3%
Citigroup Inc.	Equity	-2.4%
Royalty Pharma plc	Equity	-3.4%
Kosmos Energy Ltd.	Equity	-3.6%
General Motors Co	Equity	-1.8%

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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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