Latest news with #PatientCapitalOpportunityEquityStrategy
Yahoo
24-04-2025
- Business
- Yahoo
Does Alibaba Group Holdings Ltd (BABA) Offer an Attractive Risk/Return Opportunity?
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500's -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio's performance, which were partially offset by selection effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was -12.28%, and its shares gained 58.39% of their value over the last 52 weeks. On April 23, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $118.97 per share with a market capitalization of $285.474 billion. Patient Capital Opportunity Equity Strategy stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter: "Alibaba Group Holding Limited (NYSE:BABA) rebounded strongly in the first quarter following DeepSeek's surprise AI product launch in early January that caught markets off guard. The development boosted expectations of improving competitiveness in a market largely considered 'un-investable'. We've long appreciated Alibaba as it continued trading at a significant discount to its sum-of-the-parts valuation. With most investors writing off Chinese companies while our assessment of the odds of Chinese stimulus grew, we saw an opportunity to invest in a high-quality business at rock bottom prices. During this period, the company initiated both a dividend (1.0% Yield) and buyback program, repurchasing 7% of shares outstanding over the last twelve months. Unfortunately, much of the gains achieved in the first quarter have been reversed following escalating tariff tensions between the US and China. While the ultimate impact of tariffs remains uncertain, Alibaba has limited exposure to international markets with only 12% of revenue currently coming from outside of China. Though a tariff war broadly hurts economic activity and can create negative feedback loops into domestic demand, we believe Alibaba stands as one of the more insulated Chinese companies in this environment." An e-commerce platform displaying a wide range of products to customers online. Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the fourth quarter compared to 115 in the third quarter. Alibaba Group Holding Limited's (NYSE:BABA) consolidated revenue for fiscal third quarter of 2025 was RMB 280.2 billion, an 8% rise from previous year's same quarter. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared the list of stocks that could 10X over the next 2 years. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
CVS Health Corp. (CVS) Rebounded in Q1
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500's -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio's performance, which were partially offset by selection effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as CVS Health Corporation (NYSE:CVS). CVS Health Corporation (NYSE:CVS) is a US-based health solutions provider. The one-month return of CVS Health Corporation (NYSE:CVS) was -2.99%, and its shares lost 2.61% of their value over the last 52 weeks. On April 23, 2025, CVS Health Corporation (NYSE:CVS) stock closed at $65.57 per share with a market capitalization of $82.774 billion. Patient Capital Opportunity Equity Strategy stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q1 2025 investor letter: "CVS Health Corporation (NYSE:CVS) went from a top detractor in the fourth quarter to the top contributor in the first quarter. The company faced significant pressure last year from disappointing Medicare Advantage results—an industry-wide challenge. We felt the issues were well understood and expected improvements in pricing for 2026. We took the opportunity to add to the position. Since then, CMS (Center for Medicare & Medicaid Services) has announced 2026 rates at the high end of expectations, supporting a significant earnings power recovery. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. With new leadership in place, a 4% dividend yield and trough earnings behind us, we see continued attractive prospects ahead. A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products. CVS Health Corporation (NYSE:CVS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held CVS Health Corporation (NYSE:CVS) at the end of the fourth quarter, compared to 63 in the third quarter. While we acknowledge the potential of CVS Health Corporation (NYSE:CVS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered CVS Health Corporation (NYSE:CVS) and shared the list of best stocks that will always grow. In its Q4 2024 investor letter, Patient Capital Opportunity Equity Strategy highlighted CVS Health Corporation's (NYSE:CVS) strategic actions to overcome challenges. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Royalty Pharma PLC (RPRX) Surged Following an Acquisition Announcement
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500's -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio's performance, which were partially offset by selection effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Royalty Pharma plc (NASDAQ:RPRX). Royalty Pharma plc (NASDAQ:RPRX) is a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry. The one-month return of Royalty Pharma plc (NASDAQ:RPRX) was 0.13%, and its shares gained 12.74% of their value over the last 52 weeks. On April 23, 2025, Royalty Pharma plc (NASDAQ:RPRX) stock closed at $31.69 per share with a market capitalization of $18.2 billion. Patient Capital Opportunity Equity Strategy stated the following regarding Royalty Pharma plc (NASDAQ:RPRX) in its Q1 2025 investor letter: "Royalty Pharma plc (NASDAQ:RPRX) was up nicely in the first quarter following the announced acquisition of its external manager. The market responded positively, pushing the stock up +23% as the new structure simplifies the business model and more closely aligns management with shareholders. We remain strong believers in the business and the high-quality management team running it. We view this as just another step in the company's journey toward maximizing shareholder value. The company has an impressive track record, running the business for over 20 years as a private fund before bringing it public. The market opportunity for external royalty funding has only expanded as early-stage start-ups need capital and established players look to reduce debt levels. Royalty Pharma is ideally positioned as the partner of choice. The company maintains strong discipline, consistently achieving deal internal rate of returns (IRRs) in the low teens (unlevered). As they continue delivering results as a public company, we expect the market will increasingly take notice." A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances. Royalty Pharma plc (NASDAQ:RPRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Royalty Pharma plc (NASDAQ:RPRX) at the end of the fourth quarter, compared to 33 in the third quarter. While we acknowledge the potential of Royalty Pharma plc (NASDAQ:RPRX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Royalty Pharma plc (NASDAQ:RPRX) and shared the list of most undervalued healthcare stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Here's Why Dave & Buster's Entertainment (PLAY) Traded Lower in Q1
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500's -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio's performance, which were partially offset by selection effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY). Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) is a leading operator of entertainment and dining venues for adults and families. The one-month return of Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) was -1.77%, and its shares lost 62.43% of their value over the last 52 weeks. On April 23, 2025, Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) stock closed at $19.48 per share with a market capitalization of $672.358 million. Patient Capital Opportunity Equity Strategy stated the following regarding Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) in its Q1 2025 investor letter: "Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) trended lower over the first quarter as the market continued to worry about revenue visibility. The company had a disappointing 2024, culminating in the abrupt departure of then-CEO Chris Morris. Founded in 1982 in Dallas, Texas, the company has expanded to over 200 venues in North America across two brands (Dave & Busters, and Main Event). The company is in the middle of a multi-year transformation focused on reinvigorating growth through store remodels, store expansions, and technology upgrades while enhancing margins through cost optimizations and synergies. Despite the efforts, the results haven't yet materialized in the numbers as the challenging macro environment continues to weigh on consumer expenditures. In the meantime, an activist, Hill Path Capital, has built up a position in the company and taken two board seats. With the Chairman of the Board stepping in as CEO, we are already starting to see improved results with the focus on a back-to-basics strategy delivering better than expected results in March and April. While the timing of business model inflection remains uncertain, what's clear is the stock is trading at an all-time low valuation of 6.8x forward earnings. As the company works to improve its operations, they've been actively returning cash to shareholders through buybacks, repurchasing 12% of shares outstanding over the last 12 months." A crowded performance hall with an audience enjoying a captivating show. Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) at the end of the fourth quarter, compared to 28 in the third quarter. While we acknowledge the potential of Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) and shared the list of stocks with heavy insider buying in 2025. Patient Capital Opportunity Equity Strategy initiated a position in Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) during Q3 2024. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-04-2025
- Business
- Yahoo
What Will be the Future of Seadrill Limited (SDRL)?
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500's -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio's performance, which were partially offset by selection effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Seadrill Limited (NYSE:SDRL). Based in Hamilton, Bermuda, Seadrill Limited (NYSE:SDRL) offers offshore contract drilling services to the oil and gas industry. The one-month return of Seadrill Limited (NYSE:SDRL) was -19.40%, and its shares lost 58.37% of their value over the last 52 weeks. On April 23, 2025, Seadrill Limited (NYSE:SDRL) stock closed at $20.48 per share with a market capitalization of $1.27 billion. Patient Capital Opportunity Equity Strategy stated the following regarding Seadrill Limited (NYSE:SDRL) in its Q1 2025 investor letter: "Seadrill Limited (NYSE:SDRL) is the fourth largest pure play deepwater drilling specialist. The company emerged from bankruptcy in February 2022 with a net cash position and is positioned to benefit from limited supply and increasing demand in the deepwater drilling rig market. Nearly half of all deepwater drilling rigs worldwide were scrapped during the last decade, while industry consolidation has created a more rational competitive landscape than we've seen historically. Although oil demand has remained reasonably healthy, surprisingly strong onshore production from the USA, Canada and Russia has helped keep a lid on prices. While this has negatively impacted contract rates near-term, we believe that long-term future shale supply growth will be limited, and more offshore supply will be required benefitting offshore drillers. Given its highly specialized rig fleet and minimal debt, we believe the company is well positioned to benefit from improving prices when demand rebounds. We believe Seadrill could either lead industry consolidation or become an acquisition target." Drilling rig silhouetted against a setting sun in an offshore location. Seadrill Limited (NYSE:SDRL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Seadrill Limited (NYSE:SDRL) at the end of the fourth quarter, compared to 42 in the third quarter. While we acknowledge the potential of Seadrill Limited (NYSE:SDRL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Seadrill Limited (NYSE:SDRL) and shared top stock picks from Paul Singer's latest portfolio. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
