Opportunity Equity Weekly Update for 6/13/2025 – 6/20/2025

QXO Rises on Proposed Acquisition While Alphabet Falls on Pending Antitrust Fine

Last week, the Opportunity Equity Strategy’s representative account gained 1.94%, outperforming the S&P 500’s -0.12% fall. (Exhibit 1). The strategy ended the week up 1.65% YTD, -47 basis points behind the S&P 500.

Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 6/20/25¹

Time Period	Opportunity Equity Representative Account	S&P 500
Last Week (6/13- 6/20)	1.94%	-0.12%
MTD	7.63%	1.05%
QTD	12.13%	6.68%
YTD	1.65%	2.12%
1 Year	16.62%	10.51%
5 Year	11.51%	15.75%
10 Year	7.93%	12.95%
Inception (annualized since 6/26/00)	7.67%	7.81%

QXO, Inc. (QXO) jumped after sending a proposal to acquire GMS Inc. (GMS), a building product distributor, for $95.20 per share, a 17% premium over GMS’s previous closing price.

Coinbase Global, Inc. (COIN) is seeking approval from the SEC to issue tokenized equities. If approved, Coinbase could enable 24/7 trading of shares on the blockchain, offering lower costs and near-instant settlement.

Dave & Buster’s Entertainment, Inc. (PLAY) continued to climb after reporting a positive trend in same-store sales the previous week. Loop Capital maintained its $46 price target (40% upside) and expressed confidence in the company’s turnaround story. Loop believes that refocusing on new game offerings will help drive same-store sales and noted that the company plans to roll out six new games this summer.

Norwegian Cruise Line Holdings Ltd. (NCLH) rose on limited news.

Deutsche Bank hosted a call with the management team of SoFi Technologies, Inc. (SOFI), during which the team reported positive trends across multiple business segments. In the lending segment, management noted that net charge-off rates on personal loans are currently below their expected loss levels. On the technology platform side, they highlighted continued growth in demand over the past several quarters and announced 10 new deals that are expected to contribute to revenue in fiscal year 2026.

Exhibit 2: Significant² Contributors to Opportunity Equity Representative Account Performance, 6/13/25 - 6/20/2025

Name	Type	Net Return
QXO, Inc.	Equity	21.0%
Coinbase Global, Inc.	Equity	27.0%
Dave & Buster's Entertainment, Inc.	Equity	8.6%
Norwegian Cruise Line Holdings Ltd.	Equity	6.1%
SoFi Technologies, Inc.	Equity	7.9%

Alphabet Inc. (GOOGL) broke below both its 100-day and 200-day moving averages last Friday. The drop followed a legal opinion by Juliane Kokott, the German Advocate General at the Court of Justice of the European Union, who advised against the company's appeal to overturn a €4.12 billion antitrust fine set in 2018.

UBS Group AG (UBS) fell through the 50-day and 200-day moving averages, extending losses following Swiss regulators’ proposal the previous week to raise capital requirements. BNP Paribas lowered their price target from $38.19 to $37.86 (24% upside) and maintained their buy rating.

Citi raised its price target on Seadrill Limited (SDRL) from $35 to $36 (29% upside). Citi refreshed its financial model to reflect revised assumptions for the company’s offshore rig day rates. Based on estimated rates of ~$400K per day for Seadrill’s 7th generation rigs and $300K per day for its 6th generation rigs, Citi projects the company could generate $110M in free cash flow (FCF) in FY26 and $372M in FY27,  representing FCF yields of 6% and 21%, respectively.

Peloton Interactive, Inc. (PTON) fell through the 50-day moving average. An analysis by UBS indicates that the company’s website traffic and app usage are declining y/y.

Energy Transfer LP (ET) fell through the 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
Alphabet Inc.	Equity	-4.6%
UBS Group AG	Equity	-4.9%
Seadrill Limited	Equity	-3.9%
Peloton Interactive, Inc.	Equity	-11.2%
Energy Transfer LP	Equity	-2.6%

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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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