Meta Rises on Strong Earnings while Managed Care Organizations Fall on Medicare Advantage Advance Notice
Last week, the Opportunity Equity Strategy’s representative account fell -2.07%, underperforming the S&P 500’s 0.35% rise. (Exhibit 1). The strategy ended the week up 2.50% YTD, 105 basis points ahead of the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 1/30/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (1/23- 1/30) | -2.07% | 0.35% |
| MTD | 2.50% | 1.45% |
| QTD | 2.50% | 1.45% |
| YTD | 2.50% | 1.45% |
| 1 Year | 22.86% | 15.77% |
| 5 Year | 5.91% | 14.99% |
| 10 Year | 14.22% | 15.57% |
| Inception (annualized since 6/26/00) | 8.55% | 8.28% |
Source: Bloomberg, Patient Capital Management.
Meta Platforms, Inc. (META) jumped through its 100 and 200-day moving averages after announcing a strong earnings beat providing 1Q26 guidance above expectations. Revenue came in at $59.9B (24% y/y) vs. $58.4B expected, and EPS was $8.88 vs. $8.19 expected. Meta guided for 1Q26 revenue of $55B at the midpoint (30% y/y) vs $51B expected and FY26 CAPEX of $115B - $135B, slightly above the Street’s $121B estimate. Jefferies increased their price target from $910 to $1000 (40% upside), viewing recent revenue reacceleration as a leading indicator of higher ROI from AI investments.
Alphabet Inc. (GOOGL) reached a new all-time high following Meta’s earnings and bullish ad-demand commentary. Jefferies increased their price target from $365 to $400 (18% upside) ahead of earnings.
Norwegian Cruise Line Holdings Ltd. (NCLH) broke above its 200-day moving average following Royal Caribbean cited strong bookings trends and announced better than expected FY26 guidance.
Royalty Pharma plc (RPRX) climbed to a new 52-week high on limited news. Citi increased their price target from $48 to $50 (20% upside).
S4 Capital plc (SFOR LN) recaptured its 100-day and 200-day moving averages after announcing FY25 revenue will come in ahead of guidance.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 1/23/2026 - 1/30/2026
| Name | Type | Net Return |
| Meta Platforms, Inc. | Equity | 8.8% |
| Alphabet Inc. | Equity | 3.1% |
| Norwegian Cruise Line Holdings Ltd. | Equity | 4.9% |
| Royalty Pharma plc | Equity | 3.2% |
| S4 Capital plc | Equity | 38.3% |
Source: Patient Capital Management. See below for additional information.
UnitedHealth Group (UNH) fell through its 50, 100, and 200-day moving averages despite an in-line earnings announcement and FY26 guide. The company delivered revenue of $113.2B vs. $113.9B expected and adjusted EPS of $2.11 vs. $2.10 expected. UnitedHealth guided for FY26 EPS greater than $17.75 versus the Street’s $17.74. Shares likely fell after Centers for Medicare & Medicaid Services (CMS) released a weaker-than-expected notice showing a much smaller increase in payments to Medicare Advantage (MA) insurers. The government raised payments by 5.06% for 2026 but plans only a 0.09% increase for 2027. Bernstein lowered their price target from $444 to $405 (41% upside) but maintained their outperform rating.
CVS Health Corp (CVS) dropped through its 50 and 100-day moving averages following the CMS notice but found support on its 200-day moving average. Citing MA headwinds, Bank of America lowered their price target from $100 to $95 (27% upside) but maintained their buy rating.
IAC Inc. (IAC), QXO, Inc. (QXO), and Precigen, Inc. (PGEN) declined on limited news, with IAC breaking below its 50-day moving average.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 1/23/2026 - 1/30/2026
| Name | Type | Net Return |
| UnitedHealth Group | Equity | -18.1% |
| QXO, Inc | Equity | -7.2% |
| CVS Health Corp | Equity | -10.2% |
| IAC Inc. | Equity | -6.4% |
| Precigen, Inc. Warrant 2034 | Derivative | -6.4% |
Source: Patient Capital Management. See below for additional information.
1The performance figures for the representative Opportunity Equity account reflect the deduction of investment management fees and certain other expenses. For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance.
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.
©2026 Patient Capital Management, LLC
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