Crocs Rises on Strong Earnings While Alphabet Falls on Search Trial Testimony
Last week, the Opportunity Equity Strategy’s representative account gained 1.24%, outperforming the S&P 500’s -0.45% fall. (Exhibit 1). The strategy ended the week down -9.25% YTD, -591 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 5/9/251
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (5/2- 5/9) | 1.24% | -0.45% |
| MTD | 5.20% | 1.66% |
| QTD | 0.10% | 0.97% |
| YTD | -9.25% | -3.34% |
| 1 Year | 5.17% | 10.02% |
| 5 Year | 12.57% | 15.83% |
| 10 Year | 6.84% | 12.33% |
| Inception (annualized since 6/26/00) | 7.22% | 7.61% |
Source: Bloomberg, Patient Capital Management.
Crocs, Inc. (CROX) rose after announcing strong earnings that beat on the top and bottom line. The company generated revenue of $937M vs. $908M expected and EPS of $2.83 vs. $2.48 expected. Crocs expanded their gross margins to 57.8% (+180bps y/y), well ahead of the street’s 56.2%. During the quarter, the company repurchased 607K shares (~1% shares outstanding). Citing macro uncertainty and tariffs, Crocs withdrew their full-year guidance. However, the company is leaning into its competitive advantages and taking proactive steps to reduce its cost base. Crocs reaffirmed their expectation to remain profitable and to generate significant free cash flow. Baird increased their price target from $142 to $150 (49% upside).
Energy Transfer LP (ET) announced a slight earnings miss but reaffirmed their FY25 EBITDA guidance of $16.3B at the midpoint (+13% y/y). The company delivered revenue of $21B vs. $22B expected and EPS of $0.36 vs. $0.38 expected. Energy Transfer noted significant progress in converting their Lake Charles LNG asset from an import facility to an export facility and announced a binding supply purchase agreement with a Japanese utility company. The company also stated it will continue pursuing opportunities to supply power plants and data centers with LNG, highlighting these as capital-light contracts with quick revenue turnaround. Barclays remains confident in the company’s diversified asset base and maintained their $25 price target (54% upside).
Delta Air Lines, Inc. (DAL) continued to rise after announcing a $1B share repurchase program (~3% of the current market cap) the week prior.
Fidelity Wise Origin Bitcoin Fund (FBTC) followed bitcoin’s 6.32% move higher.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 5/2/25 - 5/9/2025
| Name | Type | Net Return |
| Crocs, Inc. | Equity | 12.6% |
| Energy Transfer LP | Equity | 5.2% |
| New Security* | Equity | 36.6% |
| Delta Air Lines, Inc. | Equity | 9.4% |
| Fidelity Wise Origin Bitcoin Fund | Equity | 6.4% |
Source: Patient Capital Management. See below for additional information.
Alphabet Inc. (GOOGL) traded down last Wednesday following a testimony from Eddy Cue, Apple’s Senior Vice President of Services. Apple’s web browser, Safari, relies on Google’s search engine. Eddy said this is the first time in two decades that search activity on Apple has declined, and as a result, they are considering adding new AI-related search engines to Safari. Alphabet refuted the claim, and said they are seeing overall query growth in search.
Precigen, Inc. (PGEN) and QXO, Inc. (QXO) fell on limited news.
Peloton Interactive, Inc. (PTON) fell despite announcing a beat and raise. The company posted revenue of $624M vs. $619M expected, expanded gross margins to 51% (+780bps y/y) vs. 50% expected, and generated EBITDA of $89.4M (14% margin) vs. $76M (12% margin) expected. The company raised its FY25 adjusted EBITDA guidance from $300 - $350M to $330 - $350M and free cash flow guidance from $200M to $250M. This would mark Peloton’s first year of positive free cash flow since 2020. Truist maintained their price target of $11 (60% upside), and noted Peloton is making progress in right-sizing their cost structure. Truist expects the company will return to sustainable growth by FY26.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 5/2/2025 - 5/9/2025
| Name | Type | Net Return |
| Alphabet Inc. | Equity | -6.9% |
| Precigen Warrant Restricted | Derivative | -16.6% |
| Precigen, Inc. | Equity | -15.3% |
| QXO, Inc. | Equity | -2.7% |
| Peloton Interactive, Inc. | Equity | -9.7% |
Source: Patient Capital Management. See below for additional information.
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.
©2025 Patient Capital Management, LLC
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