Opportunity Equity Weekly Update for 2/28/2025 – 3/7/2025

Biogen Rises on Leqembi Sales Growth while Kosmos Follows Crude Prices Lower

Last week, the Opportunity Equity Strategy’s representative account fell -4.52%, underperforming the S&P 500’s -3.06% loss. (Exhibit 1). The strategy ended the week down -3.92% YTD, -266 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 3/7/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (2/28 - 3/7)	-4.52%	-3.06%
MTD	-4.52%	-3.06%
QTD	-3.92%	-1.66%
YTD	-3.92%	-1.66%
1 Year	14.99%	13.38%
5 Year	12.48%	15.98%
10 Year	7.78%	12.80%
Inception (annualized since 6/26/00)	7.52%	7.74%

QXO, Inc. (QXO) extended their tender offer to acquire Beacon Roofing at $124.25. Beacon still believes this share price undervalues the company and recommended that holders do not sell.

Biogen Inc. (BIIB) rose through the 50-day moving average after IQVIA reported positive sequential growth in Leqembi sales, the company’s Alzheimer’s Disease treatment. Leqembi sales were up 24% on an average daily basis versus 4Q24.

Alibaba Group Holding Ltd (BABA) followed the Hang Seng’s 5.62% move higher throughout the week. Citi maintained their $170 price target (21% upside) on Alibaba. They believe the company’s latest promotional activities for International Women’s Day have been supportive of gross merchandise value (GMV) growth.

Precigen, Inc. (PGEN) rose on limited news.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 2/28/25 - 3/7/25

Name	Type	Net Return
QXO, Inc.	Equity	5.0%
Biogen Inc.	Equity	7.0%
Alibaba Group Holding Ltd	Equity	6.3%
Precigen Warrant Restricted	Derivative	7.0%
Precigen, Inc.	Equity	7.5%

Citigroup Inc. (C) fell through the 50-day and 100-day moving averages on limited news.

Kosmos Energy Ltd. (KOS) reached a new 52-week low, following Brent’s -3.85% move lower. Bernstein increased their price target from $3.50 to $3.70 (69% upside).

Energy Transfer LP (ET) fell through the 100-day moving average. Morningstar upgraded the name from “hold” to “buy” and maintained their $21 price target (20% upside). Morningstar believes the company has significant long-term organic growth potential in natural gas. They believe the company is well positioned to meet the increasing demand for domestic power generation.

Nvidia Corp (NVDA) fell in sympathy with the broader tech selloff last week. Phillip Securities maintained their $130 price target (15% upside). They believe GPU demand continues to outweigh supply.

Norwegian Cruise Line Holdings Ltd. (NCLH) fell through the 200-day moving average following a softer than expected 1Q25 guide. Morningstar maintained their $31.50 price target (57% upside). They are optimistic on travel demand and are confident Norwegian will continue to gain cost efficiencies from their younger fleet of ships. Ultimately, Morningstar believes this will drive the company’s returns on invested capital.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 2/28/2025 – 3/7/2025

Name	Type	Net Return
Citigroup Inc.	Equity	-11.8%
Kosmos Energy Ltd	Equity	-22.1%
Energy Transfer LP	Equity	-9.5%
Nvidia Corp	Equity	-9.8%
Norwegian Cruise Line Holdings Ltd	Equity	-11.4%

---

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