Opportunity Equity Weekly Update for 3/28/2025 – 4/4/2025

QXO Continues to Rise Following their Definitive Merger Agreement while Market Craters on Global Tariff Concerns

Last week, the Opportunity Equity Strategy’s representative account fell -12.91%, underperforming the S&P 500’s -9.05% decline. (Exhibit 1). The strategy ended the week down -20.24% YTD, -682 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 4/4/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (3/28 - 4/4)	-12.91%	-9.05%
MTD	-12.02%	-9.56%
QTD	-12.02%	-9.56%
YTD	-20.24%	-13.42%
1 Year	-6.60%	-0.08%
5 Year	17.56%	17.11%
10 Year	5.96%	11.38%
Inception (annualized since 6/26/00)	6.69%	7.16%

The S&P 500 fell -4.84% last Thursday and -5.97% last Friday (-10.5% cumulative), the market’s 5th worst 2-day trading session since 1975. The only times the market has experienced this extreme of a 2-day move were “Black Monday”, the Global Financial Crisis, and the COVID-19 pandemic. Last week’s sell-off came on the back of Trump’s larger than expected tariff announcement Wednesday evening, triggering concerns of a global trade war. The strategy only had two contributors last week.

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

Fidelity Wise Origin Bitcoin Fund (FBTC) followed bitcoin’s 0.44% move higher.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 3/28/25 - 4/4/25

Name	Type	Net Return
QXO, Inc.	Equity	0.8%
Fidelity Wise Origin Bitcoin Fund	ETF	0.4%

Citigroup Inc. (C) fell through the 200-day moving average. Oppenheimer lowered their price target from $116 to $110 (89% upside).

Energy Transfer LP (ET) fell through the 200-day moving average, following WTI’s -10.63% lower. Goldman Sachs increased their price target from $19 to $20 (24% upside). Goldman sees long-term growth potential in power plants and data centers, with significant commercial opportunities in Arizona, where demand for gas-fired power is increasing.

Kosmos Energy Ltd. (KOS) reached a new 52-week low, following Brent’s -10.93% move lower. Bernstein raised their price target from $3.70 to $3.72. (145% upside).

Amazon.com, Inc. (AMZN) submitted a bid to acquire TikTok U.S.

Jefferies initiated coverage on Norwegian Cruise Line Holdings Ltd. (NCLH) with a $25 price target (59% upside). Jefferies is bullish on the company’s capacity growth opportunity and improving cost structure under new management. They expect Norwegian will generate significant free cash flow and de-lever ~4x by YE26. Jefferies believes this is an attractive entry point, as Norwegian trades at the largest discount to its cruise line peer group.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 3/28/2025 – 4/4/2025

Name	Type	Net Return
Citigroup Inc.	Equity	-17.4%
Energy Transfer LP	Equity	-13.6%
Amazon.com, Inc.	Equity	-11.4%
Kosmos Energy Ltd.	Equity	-31.5%
Norwegian Cruise Line Holdings Ltd.	Equity	-17.6%

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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.

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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