Patient Capital Management is a Baltimore asset manager founded in 2020 by Samantha McLemore, CFA — Bill Miller's long-time co-manager (working together since 2002, running the flagship Opportunity Equity strategy since 2014). Continuing the Miller-school contrarian tradition, it practices "time arbitrage": exploiting behavioral mispricing to concentrate in controversial growth names (tech, healthcare, Bitcoin-related) at deep discounts to intrinsic value. Its site preserves Bill Miller's complete 1995-2022 market letters, alongside ongoing quarterly letters and webinars.
This report looks at global markets in the third quarter of 2021. In plain terms, big company stocks and growth stocks did better than small company and value stocks in the US. In China, new government rules on tech and education, plus Evergrande's debt troubles, hurt Chinese stocks. But the author doesn't think this will cause a global crisis like 2008's Lehman Brothers collapse. For regular investors, it's useful because it shows how different assets (stocks, bonds, gold, Bitcoin) performed and why. It also highlights risks like possible US interest rate hikes and China's regulatory changes. Worth a read if you want to understand market trends without jargon.
This report reviews market performance in the third quarter of 2021. The core view is that the economy showed divergence due to the impact of the Delta variant, with only 56% of the U.S. population fully vaccinated. The Federal Reserve maintained near-zero interest rates but hinted at a possible imm
This section reviews global market performance in the third quarter of 2021, focusing on the impact of the Delta variant on economic recovery, the suppression of stock markets by China's regulatory tightening, and the divergence in asset performance amid changes in Federal Reserve monetary policy expectations.
The author argues that the market exhibited significant structural divergence: large-cap stocks, growth stocks, and the financial/utilities/telecommunications/healthcare sectors outperformed, while small-cap and value stocks faced pressure. Meanwhile, China's regulatory storm (edtech, internet antitrust, common prosperity) and the Evergrande debt crisis constituted major risk events, but the author does not characterize them as systemic crises (the "Lehman moment" is questionable).
| Asset Class | Quarterly Return |
|---|---|
| S&P 500 | +0.58% |
| Nasdaq | -0.22% |
| Dow Jones | -1.46% |
| Russell 1000 (Large-Cap) | +0.21% |
| Russell Mid-Cap | -0.93% |
| Russell 2000 (Small-Cap) | -4.36% |
| Russell 1000 Growth | +1.16% |
| Russell 1000 Value | -0.78% |
| Long-Term U.S. Treasury | +0.47% |
| Barclays Aggregate (Corporate Bonds) | +0.05% |
| U.S. Dollar Index | +1.94% |
| Gold | -1.06% |
| Crude Oil | +2.12% |
| Bitcoin | +25.6% |