Opportunity Equity Weekly Update for 12/13/2024 – 12/20/2024

Bank of America Turns Bullish on Expedia while Coinbase Follows Bitcoin Lower

Last week, the Opportunity Equity Strategy’s representative account fell -2.90%, underperforming the S&P 500’s -1.97% fall. (Exhibit 1). The strategy ended the week up 24.69% YTD, -134 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 12/20/24¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (12/13 - 12/20)	-2.90%	-1.97%
MTD	-5.73%	-1.60%
QTD	6.79%	3.23%
YTD	24.69%	26.03%
1 Year	29.12%	27.97%
5 Year	8.32%	14.79%
10 Year	8.85%	13.13%
Inception (annualized since 6/26/00)	7.69%	7.92%

Redburn increased their price target on United Airlines Holdings, Inc. (UAL) from $85 to $125 (28% upside).

Precigen, Inc. (PGEN) bounced off its 52-week low.

Last week, Alphabet Inc. (GOOGL) submitted their remedies proposal for their antitrust case. JP Morgan increased their price target from $212 to $232 (21% upside) and recently included it as one of their best ideas for 2025. They are impressed with the company’s margin improvement and generative AI innovation. JP Morgan expects the company to announce a new buyback plan early next year.

Bank of America turned bullish on Expedia Group, Inc. (EXPE). They increased their price target from $187 to $221 (20% upside), upgraded the name from “neutral” to “buy”, and named it their top Internet value stock. Bank of America’s latest credit and debit card data point to an improving trend in travel spend. They highlighted the company is trading at a 10-year high enterprise value to EBITDA discount compared to Booking.com. They believe the company’s new management team is well positioned to drive growth on both the top and bottom line. They expect this will lead to a meaningful multiple expansion and generate potential acquisition interest. 

Canada Goose Holdings Inc. (GOOS) rose through the 50-day moving average on limited news.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 12/13/24 - 12/20/24

Name	Type	Net Return
United Airlines Holdings, Inc.	Equity	2.4%
Precigen, Inc.	Equity	12.9%
Alphabet Inc.	Equity	0.8%
Expedia Group, Inc.	Equity	1.0%
Canada Goose Holdings Inc.	Equity	2.1%

Coinbase Global, Inc. (COIN) followed Bitcoin’s -4.72% move lower.

CVS Health Corp (CVS) continued to fall on potential pharmacy benefit manager (PBM) reform and Department of Justice case headlines. Wells Fargo lowered their price target from $66 to $65 (47% upside) but maintained their buy rating. They do not believe potential PBM reform justifies the stock’s latest selloff.  

QXO, Inc. (QXO) fell through the 50-day moving average on limited news.

Meta Platforms, Inc. (META) fell through the 50-day moving average. Truist increased their price target from $660 to $700 (20% upside) after extending their discounted cashflow model out an extra year to capture their updated growth expectations. 

OneMain Holdings, Inc. (OMF) fell through the 50-day moving average. The company released their November trust data. Delinquencies (DQs) rose 3bps m/m, beating their historic November DQs increase of 14bps m/m. Net charge offs (NCOs) fell 12bps m/m, beating their historic November NCOs increase of 37bps. Both DQs and NCOs improved y/y, trending in line with expectations. Jefferies increased their price target from $56 to $62 (19% upside).

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 12/13/24 - 12/20/24

Name	Type	Net Return
Coinbase Global, Inc.	Equity	-10.3%
CVS Health Corp	Equity	-10.1%
QXO, Inc.	Equity	-4.3%
Meta Platforms, Inc.	Equity	-5.6%
OneMain Holdings, Inc.	Equity	-6.8%

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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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