Delta Rises on Strong Earnings while Alibaba Falls on Trade Tensions
Last week, the Opportunity Equity Strategy’s representative account fell -4.99%, underperforming the S&P 500’s -2.41% decline. (Exhibit 1). The strategy ended the week up 16.42% YTD, 388 basis points ahead of the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 10/10/251
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (10/3- 10/10) | -4.99% | -2.41% |
| MTD | -3.05% | -1.99% |
| QTD | -3.05% | -1.99% |
| YTD | 16.42% | 12.54% |
| 1 Year | 25.09% | 14.85% |
| 5 Year | 9.94% | 15.21% |
| 10 Year | 10.05% | 14.51% |
| Inception (annualized since 6/26/00) | 8.15% | 8.13% |
Source: Bloomberg, Patient Capital Management.
SoFi Technologies (SOFI) traded higher on reports that the Trump administration may sell parts of the $1.6T federal student loan portfolio to private investors. A shift to private lending could potentially increase SoFi’s loan demand and origination volumes, as the company was founded on refinancing federal student loans.
Tempus AI, Inc. (TEM) reached a new 52-week high. The company was selected by the Advanced Research Projects Agency of Health (ARPA-H) to support its Advanced Analysis for Precision Cancer Therapy (ADAPT) program by providing testing and research services aimed at developing biomarker-driven cancer treatments.
United Airlines Holdings, Inc. (UAL) rose on positive industry sentiment following Delta’s strong earnings announcement. Melius Research increased their price target from $93 to $125 (29% upside).
CVS Health Corp (CVS) reached a new 52-week high after Wells Fargo increased their price target from $84 to $103 (32% upside), citing data from their 2026 Medicare Advantage Sample. Based on their analysis, Wells Fargo believes CVS has the greatest potential upside to current earnings and guidance expectations, reaffirming it as their top pick in the group.
Delta Air Lines, Inc. (DAL) rose after posting earnings that beat on the top and bottom line. The company delivered revenue of $15.2B vs. $15.1B expected and EPS of $2.17, vs. $1.54 expected. Management expects Delta will generate 60% of industry profits in Q3. Jefferies increased their price target from $70 to $74 (29% upside).
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 10/3/25 - 10/10/2025
| Name | Type | Net Return |
| SoFi Technologies, Inc. | Equity | 4.0% |
| Tempus AI, Inc. | Equity | 5.2% |
| United Airlines Holdings, Inc. | Equity | 1.4% |
| CVS Health Corp | Equity | 0.5% |
| Delta Air Lines, Inc. | Equity | 0.4% |
Source: Patient Capital Management. See below for additional information.
Alibaba Group Holding’s (BABA) stock dropped Friday amid escalating U.S.-China trade tensions. On Thursday, China’s Ministry of Commerce announced new export controls on rare earth materials essential for chip manufacturing. In response, Trump threatened on Friday to impose an additional 100% tariff on Chinese goods. Earlier in the week, Deutsche Bank raised its price target from $176 to $225 (42% upside) following the company’s Apsara conference, highlighting Alibaba’s AI focus as a key driver for expanding its total addressable market and accelerating cloud revenue growth
QXO, Inc. (QXO) fell through the 100-day moving average. Truist lowered their price target from $30 to $28 (51% upside) and maintained their buy rating. Due to softer-than-expected new construction activity and a lack of severe weather, Truist trimmed targets across its building materials coverage.
Norwegian Cruise Line Holdings Ltd. (NCLH) fell through the 100-day moving average on limited news.
BMO Capital Markets increased their price target on Alphabet Inc. (GOOGL) from $225 to $294 (24% upside).
Seadrill Limited (SDRL) fell through the 50-day and 100-day moving average, following Brent crude’s -2.79% decline.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 10/3/2025 - 10/10/2025
| Name | Type | Net Return |
| Alibaba Group Holding Ltd | Equity | -15.4% |
| QXO, Inc. | Equity | -8.2% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -7.7% |
| Alphabet Inc. | Equity | -3.6% |
| Seadrill Limited | Equity | -7.5% |
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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