Opportunity Equity Weekly Update for 6/6/2025 – 6/13/2025

Energy Names Follow Crude Higher while UBS Falls on Capital Requirement Proposals

Last week, the Opportunity Equity Strategy’s representative account gained 0.64%, outperforming the S&P 500’s -0.36% fall. (Exhibit 1). The strategy ended the week down -0.28% YTD, -253 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/13/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (6/6- 6/13)	0.64%	-0.36%
MTD	5.57%	1.17%
QTD	9.99%	6.81%
YTD	-0.28%	2.25%
1 Year	13.49%	11.50%
5 Year	11.84%	16.22%
10 Year	7.88%	13.05%
Inception (annualized since 6/26/00)	7.59%	7.82%

Dave & Buster's Entertainment, Inc. (PLAY) rose through the 200-day moving average despite announcing an earnings miss. The company delivered in line revenue of $568M and adjusted EPS of $0.76 vs. $0.94 expected. During the earnings call, Interim CEO Kevin Sheehan highlighted early signs of a same-store sales turnaround, with positive comps recorded on 11 of the past 30 days. Loop Capital increased their price target from $35 to $46 (52% upside). Loop now projects  FY25 comps of -2.3% versus -3.0% previously and FY26 comps of 2.0% vs. 1.0% previously.

Seadrill Limited (SDRL) and Kosmos Energy Ltd. (KOS) both rose through their 100-day moving averages, following Brent’s 11.67% rally.

CVS Health Corp (CVS) rose through the 50-day moving average on limited news.

Last week, Oppenheimer and Baird both initiated coverage on QXO, Inc. (QXO), setting price targets of $27 (37% upside) and $32 (63% upside), respectively.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 6/6/25 - 6/13/2025

Name	Type	Net Return
Dave & Buster's Entertainment, Inc.	Equity	26.5%
Seadrill Limited	Equity	15.9%
Kosmos Energy Ltd.	Equity	17.7%
CVS Health Corp	Equity	6.1%
QXO, Inc.	Equity	3.5%

JP Morgan hosted a meeting with Norwegian Cruise Line Holdings Ltd. (NCLH) CFO, Mark Kempa. JP Morgan reported a reversion to strong bookings trends, improved visibility into 4Q25 and FY26, and sustained demand for the company’s luxury segment. JP Morgan maintained their $28 price target (57% upside) and buy rating.

United Airlines Holdings, Inc. (UAL) fell through the 100-day and 200-day moving averages. Jefferies raised their price target on United from $80 to $100 (35% upside). Jefferies expressed confidence in United’s multi-year strategy, “United Next”, highlighting expected improvements in profitability driven by fleet expansion and disciplined capital expenditures. Jefferies projects that the company will generate $4.5 billion in cumulative free cash flow (FCF) over the next three years (18% FCF yield). They expect this will be strategically deployed towards share repurchases and debt reduction.

Jefferies increased their price target on Delta Air Lines, Inc. (DAL) from $46 to $56 (19% upside).

UBS Group AG (UBS) fell through the 100-day moving average. At the Goldman Sachs European Financials Conference, UBS’s CFO Todd Tuckner provided an update on Switzerland’s latest banking proposals. He anticipates a phase-in period of potentially 4+ years to meet the new capital requirements. Goldman Sachs lowered their price target from $41.05 to $39.48 (23% upside) and maintained their buy rating. Goldman continues to view UBS as a leader in Wealth Management and projects the bank could achieve a high teens return on tangible equity by 2027. 

Expedia Group, Inc. (EXPE) fell through the 100-day and 200-day moving average on limited news.

Exhibit 3: Significant² Detractors from Opportunity Equity Representative Account Performance, 6/6/2025 - 6/13/2025

Name	Type	Net Return
Norwegian Cruise Line Holdings Ltd.	Equity	-9.1%
United Airlines Holdings, Inc.	Equity	-12.1%
Delta Air Lines, Inc.	Equity	-7.7%
UBS Group AG	Equity	-4.9%
Expedia Group, Inc.	Equity	-6.2%

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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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