Opportunity Equity Weekly Update for 5/16/2025 – 5/23/2025

Canada Goose Rises on Strong Earnings while Royalty Pharma Falls on Drug Price Headlines

Last week, the Opportunity Equity Strategy’s representative account fell -2.90%, underperforming the S&P 500’s -2.58% fall. (Exhibit 1). The strategy ended the week down -6.16% YTD, -534 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 5/23/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (5/16- 5/23)	-2.90%	-2.58%
MTD	8.78%	4.32%
QTD	3.51%	3.61%
YTD	-6.16%	-0.82%
1 Year	10.35%	11.64%
5 Year	12.74%	16.20%
10 Year	7.21%	12.56%
Inception (annualized since 6/26/00)	7.35%	7.71%

Peloton Interactive, Inc. (PTON) rose through the 100-day and 200-day moving averages on limited news.

Fidelity Wise Origin Bitcoin Fund (FBTC) reached an all-time high last week, following bitcoin’s 4.39% move higher.

Alphabet Inc. (GOOGL) hosted their annual flagship developer conference last week, Google I/O, where the company provided several notable updates. Alphabet’s latest large language model, Gemini 2.5 Pro, is now leading the LM-Arena leaderboard across all categories. Alphabet reiterated their strength in search, stating that Google AI Overviews have over 1.5B monthly active users, making Google the largest provider of generative AI in the world. Finally, Alphabet provided more details into their smart glasses, Android XR. The glasses will be fully compatible with Android devices and will have a camera and mic, allowing Gemini to analyze everything the user is seeing and hearing throughout the day.  Evercore maintained their $205 price target (22% upside). Evercore believes Alphabet’s focus on AI and innovation may accelerate growth in Google search. 

Canada Goose Holdings Inc. (GOOS) rose through the 100-day and 200-day moving averages after announcing earnings that beat on the top and bottom line. The company delivered revenue of $268M vs. $252M expected and adjusted EPS of $0.24 vs. $0.16 expected. Most notably, the company grew DTC comparable sales for the first time since the 3/31/2024 quarter, posting +6.8% y/y growth versus -2% expected. Baird raised their price target from $14 to $18 (53% upside).

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 5/16/25 - 5/23/2025

Name	Type	Net Return
Peloton Interactive, Inc.	Equity	19.4%
Fidelity Wise Origin Bitcoin Fund	Equity	4.5%
Alphabet Inc.	Equity	1.4%
Canada Goose Holdings Inc.	Equity	29.3%
New Security*	Equity	12.9%

Norwegian Cruise Line Holdings Ltd. (NCLH) fell through the 50-day moving average after Truist lowered their price target from $35 to $27 (56% upside) but maintained their buy rating. Truist reported that industry-wide bookings growth has slowed materially since 2024 and flagged a spike in cancellations in early April due to macroeconomic uncertainty. Truist is concerned bookings growth has fallen below industry-wide supply growth. Specific to Norwegian, Truist believes they are currently losing market share to Royal Caribbean due to a weaker customer experience. However, Truist is optimistic about Norwegian’s new luxury division’s leadership team and expects they will address consumer concerns regarding onboard product delivery and quality.

Crocs, Inc. (CROX) fell through the 200-day moving average on limited news. Later in the week, the company announced the internal promotion of Terence Reilly. He previously served as EVP and Brand President of HEYDUDE. Terence is now taking on the role of EVP and Chief Brand Officer for both Crocs and HEYDUDE. Stifel believes Terence helped drive significant brand awareness for HEYDUDE over the past year and maintained their $127 price target (17% upside).

Royalty Pharma plc (RPRX) fell through the 50-day moving average on headlines that the Department of Health and Human Services (HHS) is preparing to implement President Trump’s “Most Favored Nation” (MFN) executive order. The MFN order would allow Americans to purchase pharmaceutical drugs through the HHS at the same prices offered in other countries.

Citigroup Inc. (C) and SoFi Technologies, Inc. (SOFI) both fell through their 100-day moving averages on limited news. Truist raised their price target on Citi from $79 to $84 (15% upside).   

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 5/16/2025 - 5/23/2025

Name	Type	Net Return
Norwegian Cruise Line Holdings Ltd.	Equity	-10.1%
Crocs, Inc.	Equity	-7.9%
Royalty Pharma plc	Equity	-4.6%
Citigroup Inc.	Equity	-3.5%
SoFi Technologies, Inc.	Equity	-6.0%

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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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