Seadrill Rises with Crude While Meta Falls Despite Strong Earnings
Last week, the Opportunity Equity Strategy’s representative account fell -0.79%, underperforming the S&P 500’s -0.46% loss. (Exhibit 1). The strategy ended the week up 11.01% YTD, 139 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 10/23/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (10/16-10/23) | -0.79% | -0.46% |
| MTD | -3.46% | -0.31% |
| QTD | -3.46% | -0.31% |
| YTD | 11.01% | 12.40% |
| 1 Year | 15.21% | 14.46% |
| 3 Year | 31.82% | 23.42% |
| 5 Year | 7.42% | 12.49% |
| 10 Year | 13.19% | 15.43% |
| Inception (annualized since 6/26/00) | 8.63% | 8.47% |
Source: Bloomberg, Patient Capital Management.
Royalty Pharma plc (RPRX) continued its climb on limited news. Seadrill Limited (SDRL) moved higher alongside a 6.2% increase in Brent crude prices.
UnitedHealth Group (UNH) continued to grind higher following the prior week’s beat-and-raise earnings report. RBC raised its price target from $478 to $498 (19% upside) after increasing its FY27 and FY28 EPS estimates to reflect improved management guidance and better-than-expected margin trends in Medicare Advantage and Medicaid.
Adobe Inc. (ADBE) broke above its 50-day and 200-day moving averages. Later in the week, the company announced a partnership with BWT Alpine Formula One Team to enhance fan engagement through AI-powered experiences.
Biogen Inc. (BIIB) climbed to a new 52-week high after Wells Fargo raised its price target from $250 to $310 (24% upside). The increase followed a significant upward revision to its peak sales estimate for felzartamab, Biogen’s Phase 3 kidney transplant rejection treatment. Wells Fargo increased its estimate from $1.7B to $4.0B, reflecting higher pricing assumptions, long-term maintenance dosing, and greater expected market expectations.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 10/16/2026 - 10/23/2026
| Name | Type | Net Return |
| Royalty Pharma plc | Equity | 4.8% |
| Seadrill Limited | Equity | 10.8% |
| UnitedHealth Group | Equity | 4.1% |
| Adobe Inc. | Equity | 7.6% |
| Biogen Inc. | Equity | 7.8% |
Source: Patient Capital Management. See below for additional information.
Meta Platforms, Inc. (META) slipped below its 50-day moving average despite reporting strong earnings. Revenue reached $64.6B versus $63.3B expected, while adjusted EPS came in at $10.26 versus $7.77 expected. The company guided 4Q revenue to $74.5B (25% y/y growth) at the midpoint, above consensus estimates of $73.6B and narrowed its full-year CAPEX outlook from $130B–$145B to $135B–$145B. Meta did not provide FY27 CAPEX guidance but indicated plans to invest aggressively in AI initiatives while anticipating sustained strong revenue growth. JPMorgan raised its price target from $920 to $940 (46% upside), highlighting encouraging adoption of Meta’s Muse AI agent and enterprise opportunities for Meta Model API and Muse Code.KeyBanc lowered its price target on Alphabet Inc. (GOOGL) from $435 to $410 (28% upside) while maintaining its overweight rating. Keybanc remains optimistic about Alphabet’s long-term positioning in AI and Waymo but believes strong Cloud performance is already reflected in consensus estimates. Additionally, Keybanc sees modest downside risk to Search estimates, flagging difficult y/y comps, mixed macroeconomic conditions, and potential foreign exchange headwinds.
Citigroup Inc. (C) fell on limited news.
General Motors Co (GM) fell below its 100-day and 200-day moving averages despite announcing a beat-and-raise quarter. The company printed revenue of $50.0B versus $48.5B expected and EPS of $3.70 versus $3.50 expected. General Motors also raised the midpoint of its FY26 net income guidance by $100M. Additionally, the company repurchased $2.5B in shares (~4% of market cap), followed by another $1B in October, bringing year-to-date repurchases to $6.3B (~10% of market cap), exhausting its previous authorization. The Board subsequently approved a new $20B share repurchase program (~31% of market cap). Citi maintained its $132 price target (73% upside), noting GM’s demonstrated ability to generate strong free cash flow despite headwinds from commodity inflation, tariffs, and battery electric vehicle (BEV) spending.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 10/16/2026 - 10/23/2026
| Name | Type | Net Return |
| Meta Platforms, Inc. | Equity | -9.4% |
| Alphabet Inc. | Equity | -6.0% |
| Meta Platforms Inc. 01/28 C540 | Derivative | -22.1% |
| Citigroup Inc. | Equity | -2.9% |
| General Motors Co | Equity | -9.6% |
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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