Opportunity Equity Weekly Update for 5/09/2025 – 5/16/2025

Coinbase Rises on S&P 500 Inclusion while New Fortress Falls on Earnings Miss

Last week, the Opportunity Equity Strategy’s representative account gained 6.50%, outperforming the S&P 500’s 5.33% rise. (Exhibit 1). The strategy ended the week down -3.35% YTD, -516 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 5/16/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (5/9- 5/16)	6.50%	5.33%
MTD	12.03%	7.08%
QTD	6.61%	6.36%
YTD	-3.35%	1.81%
1 Year	10.14%	13.99%
5 Year	15.40%	17.57%
10 Year	7.54%	12.87%
Inception (annualized since 6/26/00)	7.48%	7.83%

QXO, Inc. (QXO) rose through the 200-day moving average on limited news.

Coinbase Global, Inc. (COIN) rose through the 100-day and 200-day moving averages after S&P Global announced its addition to the S&P 500 index on May 19th. Oppenheimer increased their price target from $269 to $293 (10% upside).

Nvidia Corp (NVDA) and Amazon.com, Inc. (AMZN) rose through the 100-day and 200-day moving averages following an agreement between the US and China to pause retaliatory tariffs for the next 90 days and resume trade negotiations in Switzerland. Additionally, both companies are seen as beneficiaries coming out of the Saudi-US Investment Forum, which highlighted plans for a large-scale AI infrastructure buildout. Specific to Nvidia, the company announced a strategic partnership with HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund, which includes the deployment of 18,000 Nvidia Blackwell chips.

Alphabet Inc. (GOOGL) rose through the 50-day moving average on limited news.  

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 5/9/25 - 5/16/2025

Name	Type	Net Return
QXO, Inc.	Equity	21.0%
Coinbase Global, Inc.	Equity	33.6%
Nvidia Corp	Equity	16.1%
Alphabet Inc.	Equity	8.8%
Amazon.com, Inc.	Equity	6.5%

New Fortress Energy Inc. (NFE) fell after announcing an earnings miss on the top and bottom line. The company generated revenue of $471M vs. $547M expected and EBITDA of $82M vs. $213M expected. The EBITDA miss was primarily due to higher-than-expected asset sale expenses, increased operating costs, and a delayed $110M incentive payment from Puerto Rico for converting the country’s diesel power plants to LNG. Citi maintained their $8 price target and buy rating (201% upside).

CVS Health Corp (CVS) fell on two headlines last Tuesday. First, the Department of Justice announced their intent to carry out a criminal investigation into United Health’s Medicare business, signaling an uptick in regulatory scrutiny. Second, President Donald Trump signed an executive order to reduce drug prices. Morningstar highlighted the ambiguity associated with drug price negations and reiterated their $86 price target (38% upside).

Alibaba Group Holding Ltd (BABA) fell after announcing a slight earnings miss. The company delivered revenue of $32.5B vs $33B expected and adjusted earnings of $1.72 vs. $1.76 expected. The company repurchased $11.9B in shares this past fiscal year (~4% of the current market cap) and returned an additional $4.6B via dividends. UBS lowered their price target from $180 to $178 (44% upside) and maintained their buy rating.

Goldman Sachs lowered their price target on Kosmos Energy Ltd. (KOS) from $3.50 to $3.00 (100% upside) and maintained their buy rating. Goldman reiterated their expectations for a free cash flow inflection, expecting $261M by 2026 (~31% FCF yield). However, they believe balance sheet challenges and tougher market conditions create a near-term overhang on the stock.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 5/9/2025 - 5/16/2025

Name	Type	Net Return
New Fortress Energy Inc.	Equity	-57.9%
CVS Health Corp	Equity	-6.6%
New Security*	Derivative	-12.6%
Alibaba Group Holding Ltd	Equity	-1.5%
Kosmos Energy Ltd.	Equity	-2.2%

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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.

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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