Opportunity Equity Weekly Update for 3/14/2025 – 3/21/2025

IAC Rises on Upcoming Angi Spin while QXO Enters Into Definitive Merger Agreement to Acquire Beacon Roofing

Last week, the Opportunity Equity Strategy’s representative account gained 1.76%, outperforming the S&P 500’s 0.53% rise. (Exhibit 1). The strategy ended the week down -4.69% YTD, -135 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 3/21/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (3/14 - 3/21)	1.76%	0.53%
MTD	-5.30%	-4.72%
QTD	-4.69%	-3.34%
YTD	-4.69%	-3.34%
1 Year	8.96%	9.60%
5 Year	22.09%	21.59%
10 Year	7.45%	12.40%
Inception (annualized since 6/26/00)	7.47%	7.65%

IAC Inc. (IAC) rose through the 50-day and 100-day moving averages. JP Morgan resumed coverage with a $60 price target (25% upside) and a “buy” rating. JP Morgan views the Angi spin as a positive catalyst and is encouraged by the turnaround in the company’s Dotdash Meredith segment. Shares of IAC currently trade in line with the company’s stake in Angi, MGM, and cash. JP Morgan believes investors are getting roughly $1.5B in assets for free. 

Dave & Buster's Entertainment, Inc. (PLAY) rose on limited news.

Goldman Sachs lowered their price target on Citigroup Inc. (C) from $90 to $80 (11% upside) and maintained their buy rating.

JP Morgan hosted Norwegian Cruise Line Holdings Ltd. (NCLH) at their Gaming, Lodging, Restaurant and Leisure conference last week. JP Morgan maintained their $30 price target (47% upside) and believe travel demand is holding firm despite the noisy macro backdrop. JPM also called out the elevated value gap between cruise vacations and land-based vacations. Currently, cruises are 30-35% cheaper versus 20-25% pre-pandemic.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 3/14/25 - 3/21/25

Name	Type	Net Return
IAC Inc.	Equity	8.6%
Dave & Buster's Entertainment, Inc.	Equity	14.2%
Citigroup Inc.	Equity	4.7%
New Security*	Equity	20.6%
Norwegian Cruise Line Holdings Ltd.	Equity	6.3%

UBS increased their price target on Alibaba Group Holding Ltd (BABA) from $160 to $176 (30% upside). UBS expects Alibaba’s recently introduced 0.6% service fee to drive improved customer managed revenue (CMR) through the company’s core ecommerce segment, Taobao Tmall Group (TTG). Despite the stock’s recent run, UBS sees cloud growth, GenAI, and a potential macro stimulus package as near-term support. 

Truist maintained their $205 price target (74% upside) on Nvidia Corp (NVDA). Following NVDA’s GTC day, Truist is confident in the demand for compute. Truist views enterprise IT, data centers, and physical AI as growing markets for Nvidia.

Wolfe lowered their price target on Meta Platforms Inc. (META) from $760 to $730 (22% upside).

QXO, Inc. (QXO) entered into a definitive merger agreement to acquire Beacon Roofing (BECN) for $124.35 per share.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 3/14/2025 – 3/21/2025

Name	Type	Net Return
Alibaba Group Holding Ltd	Equity	-4.2%
Nvidia Corp	Equity	-3.3%
New Security*	Equity	-17.3%
Meta Platforms, Inc.	Equity	-1.9%
QXO, Inc.	Equity	-1.2%

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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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