Opportunity Equity Weekly Update for 11/15/2024 – 11/22/2024

QXO Rises on Potential M&A while Alphabet Falls on DOJ Proposal

Last week, the Opportunity Equity Strategy’s representative account rose 2.87%, outperforming the S&P 500’s 1.72% gain. (Exhibit 1). The strategy ended the week up 30.30% YTD, 360 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 11/22/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (11/15 - 11/22)	2.87%	1.72%
MTD	8.04%	4.74%
QTD	11.60%	3.79%
YTD	30.30%	26.70%
1 Year	50.29%	32.85%
5 Year	10.34%	15.76%
10 Year	9.18%	13.25%
Inception (annualized since 6/26/00)	7.91%	7.97%

The Wall Street Journal reported QXO, Inc. (QXO) made an offer to acquire Beacon Roofing (BECN). While terms haven’t been disclosed, the potential takeover could come before year-end.

SoFi Technologies, Inc. (SOFI) reached a new 52-week high. Mizuho raised their price target from $14 to $16 (3% upside).

Energy Transfer LP (ET) outperformed WTI’s 6.30% rise.

Peloton Interactive, Inc. (PTON) reached a new 52-week high.

Wells Fargo upgraded CVS Health Corp (CVS) from equalweight to overweight and raised their price target from $60 to $66 (14% upside). They believe the company faces an easing regulatory landscape for their Medicare business but acknowledged potential headwinds for their Medicaid segment.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 11/15/24 - 11/22/24

Name	Type	Net Return
QXO, Inc.	Equity	10.6%
SoFi Technologies, Inc.	Equity	14.5%
Energy Transfer LP	Equity	10.3%
Peloton Interactive, Inc.	Equity	23.1%
CVS Health Corp	Equity	8.7%

Dave & Buster's Entertainment, Inc. (PLAY) fell through the 50-day and 100-day moving averages on limited news.

Alphabet Inc. (GOOGL) fell through the 50-day and 100-day moving averages after the Department of Justice filed a Proposed Final Judgement aimed at breaking up the company’s search business.

Truist reported strong North American card data through 11/18 for Amazon.com, Inc. (AMZN) and reiterated their $270 price target (37% upside).  

Alibaba Group Holding Ltd (BABA) fell through the 100-day moving average despite a profitability beat the week prior, delivering EBIT of $4.9B vs. $4.5B expected and EPS of $2.54 vs. $1.50 expected. The company repurchased $4.1B shares (~2% of the current market cap) and has $22B remaining on the plan (~11% of the current market cap). Deutsche Bank increased their price target from $125 to $130 (56% upside). They are optimistic on the company’s reacceleration of customer management revenue (CMR) for both Taobao and Tmall Group (TTG), the company’s customer to customer segment and business to customer segment, respectively. Deutsche Bank believes TTG is still growing and expects the spread between CMR growth and gross merchandise value (GMV) growth will narrow as the segment matures.

Green Thumb Industries Inc. (GTBIF) fell on limited news.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 11/15/24 - 11/22/24

Name	Type	Net Return
Dave & Buster's Entertainment, Inc.	Equity	-10.3%
Alphabet Inc.	Equity	-4.5%
Amazon.com, Inc.	Equity	-2.7%
Alibaba Group Holding Ltd	Equity	-6.2%
Green Thumb Industries Inc.	Equity	-5.9%

---

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