Opportunity Equity Weekly Update for 11/22/2024 – 11/29/2024

Dave and Buster’s Rises on Turnaround Initiatives while General Motors Falls on Tariff Threat

Last week, the Opportunity Equity Strategy’s representative account rose 1.51%, outperforming the S&P 500’s 1.08% gain. (Exhibit 1). The strategy ended the week up 32.27% YTD, 420 basis points ahead of the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 11/29/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (11/22 - 11/29)	1.51%	1.08%
MTD	9.67%	5.87%
QTD	13.28%	4.91%
YTD	32.27%	28.07%
1 Year	50.08%	34.44%
5 Year	10.01%	15.77%
10 Year	9.15%	13.35%
Inception (annualized since 6/26/00)	7.97%	8.01%

Dave & Buster's Entertainment, Inc. (PLAY) rose through the 50-day and 100-day moving averages. Truist lowered their price target from $59 to $56 (42% upside) but maintained their buy rating, Their latest card data forecasts a 3Q24 same store sales miss. However, they believe the stock remains significantly undervalued and expect remodels, special events, and improved marketing to drive an inflection in same store sales during 4Q24.

Piper Sandler hosted a discussion with Amazon.com, Inc. (AMZN) logistics expert, Mark Wulfraat. They discussed margin expansion driven by robotics, a potential grocery build out, and improved inbound system. Mark believes the company will add ~27 new national inbound cross docks, increasing the network by ~27M square feet. Piper Sandler believes the increased regionalization of cross docks will reduce shipping costs and shipping time, improving overall customer satisfaction.

Energy Transfer LP (ET) reached a new 52-week high despite WTI’s -4.55% move lower. JP Morgan increased their price target from $20 to $23 (16% upside). They believe ET is well positioned to exceed the upper end of their FY24 EBITDA guidance and are encouraged by the lowered 2025 CAPEX guide. They also pointed out the advantage of Energy Transfer’s leveraged capital structure, giving them more torque than their peers.
 
SoFi Technologies, Inc. (SOFI) reached a new 52-week high after Jefferies released a bullish fintech update. They reported strong loan origination volume growth, declining delinquencies, and access to lower cost funds across the industry. They increased their price target on Sofi from $13 to $19 (16% upside).

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

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 11/22/24 - 11/29/24

Name	Type	Net Return
Dave & Buster's Entertainment, Inc.	Equity	15.5%
Amazon.com, Inc.	Equity	5.5%
Energy Transfer LP	Equity	4.1%
SoFi Technologies, Inc.	Equity	5.2%
Peloton Interactive, Inc.	Equity	8.4%

General Motors Co (GM) sold off from its 52-week high following Trump’s announcement of a potential 25% tariff placed on imported goods from Mexico and Canada.

QXO, Inc. (QXO), Nvidia Corp (NVDA), and IAC Inc. (IAC) fell on limited news.

Coinbase Global, Inc. (COIN) followed Bitcoin’s -1.97% move lower. Oppenheimer increased their price target from $265 to $358 (21% upside).

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 11/22/24 - 11/29/24

Name	Type	Net Return
General Motors Co	Equity	-5.0%
QXO, Inc.	Equity	-2.3%
Nvidia Corp	Equity	-2.6%
IAC Inc.	Equity	-2.4%
Coinbase Global, Inc.	Equity	-2.8%

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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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