Kosmos Follows Crude Prices Higher while Coinbase Follows Bitcoin Lower
Last week, the Opportunity Equity Strategy’s representative account gained 1.42%, outperforming the S&P 500’s 0.70% rise. (Exhibit 1). The strategy ended the week up 26.47% YTD, -43 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 12/27/241
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (12/20 - 12/27) | 1.42% | 0.70% |
| MTD | -4.39% | -0.91% |
| QTD | 8.31% | 3.95% |
| YTD | 26.47% | 26.90% |
| 1 Year | 25.12% | 26.61% |
| 5 Year | 8.75% | 14.81% |
| 10 Year | 8.95% | 13.11% |
| Inception (annualized since 6/26/00) | 7.75% | 7.94% |
Source: Bloomberg, Patient Capital Management.
Kosmos Energy Ltd. (KOS) followed Brent’s 1.69% move higher.
General Motors Co (GM), Dave & Buster's Entertainment, Inc. (PLAY), and Citigroup Inc. (C) rose on limited news.
Jefferies remained bullish on Fintech in their December update, reporting strong y/y loan origination growth coupled with a decelerating rise in delinquencies. They reiterated their $19 price target on Sofi Technologies, Inc. (SOFI) (19% upside) and flagged the company as a peer leader in slowing delinquencies.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 12/20/24 - 12/27/24
| Name | Type | Net Return |
| Kosmos Energy Ltd. | Equity | 8.3% |
| General Motors Co | Equity | 4.8% |
| Dave & Buster's Entertainment, Inc. | Equity | 6.3% |
| Citigroup Inc. | Equity | 2.6% |
| SoFi Technologies, Inc. | Equity | 4.1% |
Source: Patient Capital Management. See below for additional information.
Norwegian Cruise Line Holdings Ltd. (NCLH) fell through the 50-day moving average on limited news.
Coinbase Global, Inc. (COIN) fell through the 50-day moving average, following Bitcoin’s -2.23% move lower.
Precigen, Inc. (PGEN) announced they have entered into a securities purchase agreement to sell 8% convertible preferred stock at a conversion price of $1.125 (55% premium over Friday’s close) along with 52.7M warrants that can be exercised at $0.75 per share. The private placement was led by affiliates of Patient Capital Management, with participation from Bill Miller, Randal J. Kirk, executive chairman of the board of directors of Precigen, and certain other investors. The company expects gross proceeds of $79M before expenses. JMP believes this will alleviate near-term financing concerns and provide Precigen a sufficient runway to launch PRGN-2012, the company’s recurrent respiratory papillomatosis (RRP) gene therapy.
Amazon.com, Inc. (AMZN) and Canada Goose Holdings Inc. (GOOS) fell on limited news.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 12/20/24 - 12/27/24
| Name | Type | Net Return |
| Norwegian Cruise Line Holdings Ltd. | Equity | -4.3% |
| Coinbase Global, Inc. | Equity | -4.7% |
| Amazon.com, Inc. | Equity | -0.5% |
| Precigen, Inc. | Equity | -4.8% |
| Canada Goose Holdings Inc. | Equity | -1.5% |
Source: Patient Capital Management. See below for additional information.
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
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