Opportunity Equity Weekly Update for 9/27/2024 – 10/4/2024

Kosmos Follows Crude Higher while Coinbase Follows Bitcoin Lower

Last week, the Opportunity Equity Strategy’s representative account fell -0.05%, underperforming the S&P 500’s 0.26% rise. (Exhibit 1). The strategy ended the week up 17.30% YTD, 457 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 10/4/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (9/27 - 10/4)	-0.05%	0.26%
MTD	0.46%	-0.17%
QTD	0.46%	-0.17%
YTD	17.30%	21.87%
1 Year	43.54%	36.89%
5 Year	11.23%	16.13%
10 Year	8.87%	13.38%
Inception (annualized since 6/26/00)	7.49%	7.84%

Kosmos Energy Ltd. (KOS) followed Brent’s 8.43% move higher over the week. Goldman Sachs lowered their price target from $7.50 to $7.00, (55% upside) but maintained their buy rating. They expect strong free cash flow generation in 2025 as capital expenditures slow and the company’s Tortue asset comes online.

Evercore reiterated Illumina, Inc. (ILMN) as one of their best ideas over a 1 year plus time horizon.

Alibaba Group Holding Ltd (BABA) and the Hang Seng both broke out to new 52-week highs on the back of China’s stimulus initiatives the week prior. Loop Capital increased their price target from $115 to $145 (27% upside). 

Meta Platforms, Inc. (META) continued to rise following the company’s Annual Meta Connect event the week prior. The company debuted their latest artificial intelligence capabilities, along with their first prototype of augmented reality glasses. Canaccord Genuity raised their price target on from $600 to $675 (13% upside).

Dave & Buster's Entertainment, Inc. (PLAY) rose on limited news.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 9/27/24 - 10/4/24

Name	Type	Net Return
Kosmos Energy Ltd.	Equity	13.6%
Illumina, Inc.	Equity	8.7%
Alibaba Group Holding Ltd	Equity	6.6%
Meta Platforms, Inc.	Equity	5.0%
Dave & Buster's Entertainment, Inc.	Equity	6.8%

QXO, Inc. (QXO) fell on limited news.

Goldman Sachs lowered their price target on IAC Inc. (IAC) from $65 to $62, (20% upside), but maintained their buy rating. They believe IAC’s collection of businesses remains undervalued and expect future share repurchase opportunities as the balance sheet continues to improve. 

Coinbase Global, Inc. (COIN) followed Bitcoin’s -5.16% move lower throughout the week. Bank of America lowered their price target from $246 to $196 (15% upside).

Jefferies increased their price target on Delta Air Lines, Inc. (DAL) from $56 to $60, 22% upside.

Canada Goose Holdings Inc. (GOOS) fell through the 100-day and 200-day moving averages on limited news.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 9/27/24 - 10/4/24

Name	Type	Net Return
QXO, Inc.	Equity	-11.1%
IAC Inc.	Equity	-5.5%
Coinbase Global, Inc.	Equity	-10.6%
Delta Air Lines, Inc.	Equity	-4.4%
Canada Goose Holdings Inc.	Equity	-5.0%

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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. 

©2024 Patient Capital Management, LLC