Seadrill Climbs on Strong Earnings While Norwegian Falls on Lowered Guidance
Last week, the Opportunity Equity Strategy’s representative account fell -1.09%, underperforming the S&P 500’s 0.17% gain. (Exhibit 1). The strategy ended the week up 5.92% YTD, -278 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 05/15/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (05/08-05/15) | -1.09% | 0.17% |
| MTD | -0.26% | 2.83% |
| QTD | 12.61% | 13.62% |
| YTD | 5.92% | 8.70% |
| 1 Year | 41.92% | 26.75% |
| 3 Year | 30.10% | 23.12% |
| 5 Year | 5.36% | 13.80% |
| 10 Year | 14.47% | 15.67% |
| Inception (annualized since 6/26/00) | 8.59% | 8.48% |
Source: Bloomberg, Patient Capital Management.
Seadrill Limited (SDRL) reached a new 52-week high after announcing a beat-and-raise quarter. The company delivered revenue of $358M vs. $326M expected and EBITDA of $97M vs. $61M expected. Seadrill raised its FY26 revenue guidance by $30M at the midpoint and EBITDA guidance by $20M at the midpoint, with management citing increased demand across multiple regions for its deepwater rigs. Fearnley Securities increased its price target from $43 to $58 (10% upside).Royalty Pharma plc (RPRX) grinded to a new 52-week high on limited news.
Nvidia Corp (NVDA) climbed to a new all-time high after Cantor Fitzgerald raised its price target from $300 to $350 (55% upside). Cantor believes NVDA chips are sold out for 2026 and 2027, with a favorable setup for 2028-2029 as supply chain constraints across the semiconductor industry continue to act as a tailwind for the company.
CVS Health Corp (CVS) hit a new 52-week high after JP Morgan increased its price target from $101 to $111 (16% upside) following the company’s beat-and-raise announcement the prior week. Given management's commentary and recent prudence around guidance, JPMorgan believes there is further upside to the raised guide and revised its EPS estimates higher.
Bank of America increased its price target on UnitedHealth Group (UNH) from $380 to $420 (7% upside).
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 05/08/2026 - 05/15/2026
| Name | Type | Net Return |
| Seadrill Limited | Equity | 9.1% |
| Royalty Pharma plc | Equity | 4.5% |
| Nvidia Corp | Equity | 4.7% |
| CVS Health Corp | Equity | 5.9% |
| UnitedHealth Group | Equity | 3.6% |
Source: Patient Capital Management. See below for additional information.
QXO, Inc. (QXO) fell after announcing an in-line quarter. The company delivered revenue of $1,730M vs. $1,726M expected and EBITDA of $1.2M vs. $1.1M expected. Management noted general softness in the building products industry but reaffirmed their path to achieve $50B in sales within the decade. Keybanc maintained its $32 price target (96% upside), noting the importance of looking past near-term headwinds in residential building and focusing instead on the long-term growth potential and margin expansion driven by synergies and technological improvements.
IAC Inc. (IAC) fell through its 50-day moving average and Norwegian Cruise Line Holdings Ltd. (NCLH) hit a new 52-week low, both continuing to slide following earnings misses the week prior. TD Cowen lowered its price target on NCLH from $27 to $22 (42% upside) while maintaining its Buy rating.
Crocs, Inc. (CROX) moved lower on limited news.
Citi reported on Amazon.com, Inc. (AMZN)’s latest offering, Amazon Supply Chain Services (ASCS), which opens the company's logistics network to third-party businesses for delivering, storing, and moving goods. Citi believes this will allow Amazon to generate incremental revenue from its existing fixed cost base, providing a tailwind to operating margin expansion.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 05/08/2026 - 05/15/2026
| Name | Type | Net Return |
| QXO, Inc. | Equity | -13.0% |
| IAC Inc. | Equity | -9.5% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -9.1% |
| Crocs, Inc. | Equity | -8.4% |
| Amazon.com, Inc. | Equity | -3.1% |
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.
*Entered into position intra quarter. Security holding not yet publicly disclosed.
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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