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Patient Capital ManagementArticle20 Jul 2026Source: patientcapitalmanagement.com

Opportunity Equity Strategy Update for 7/10/2026 – 7/17/2026

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.

Samantha McLemore · 2020 · 美国巴尔的摩Contrarian growth-value / time arbitrage

In plain words

This weekly update says the Opportunity Equity portfolio fell 1.16% last week, but still beat the S&P 500's 1.55% decline; it is up 10.64% year to date, about one percentage point ahead of the index. The tone is neutral: strong earnings didn't help stocks. Citigroup (C) beat estimates and announced a $30B buyback, yet shares fell 8%. United Airlines (UAL) raised its full-year profit guidance, yet fell 8.4%. Nvidia (NVDA) slipped below its 50-day moving average (average closing price over 50 days) and lost 3.9%.

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At a Glance

The author's stance this period [Neutral]: The portfolio fell 1.16% for the week, continuing to outperform the S&P 500, with a YTD lead of 100 basis points, but individual stocks diverged sharply — names with earnings beats fell sharply instead.

  • The portfolio posted a net return of -1.16% last week, beating the S&P 500's -1.55%; YTD 10.64% vs. 9.64%, a lead of 100 basis points.
  • RPRX and CVS hit 52-week highs; ADBE broke above its 50-day moving average; CHYM reclaimed its 200-day moving average; SDRL moved higher alongside Brent crude, which rose 6.7% on the week.
  • Citigroup beat expectations on both revenue of $24.8B and EPS of $3.15 and announced a new $30B buyback, yet the stock fell 8.1%; Jefferies cut its price target to $165.
  • United Airlines raised its FY26 EPS guidance midpoint to $10, yet the stock still fell 8.4%; JP Morgan raised its price target to $203.
  • NVDA fell below its 50-day moving average and dropped 3.9% on the week; Wells Fargo maintained its $315 price target; PGEN fell 7.0% amid limited news flow.
~10 min full read · 6 sections
Deep Analysis

Weekly Decline of 1.16%, YTD Leads S&P by 100 Basis Points

The portfolio fell 1.16% last week, outperforming the S&P 500's -1.55%, with a YTD return of 10.64%, leading the benchmark by 100 basis points.

Performance comparison: The Opportunity Equity representative account posted a net return of -1.16% for the week (07/10–07/17), versus -1.55% for the S&P 500; MTD 0.39% vs -0.52%, QTD the same; YTD 10.64% vs 9.64%; 1-year 27.83% vs 19.85%; 3-year 23.70% vs 19.74%; 5-year 6.88% vs 13.12% (lagging by about 624 basis points); 10-year 14.41% vs 15.10% (lagging by 69 basis points); Since inception (annualized from 6/26/2000) 8.71% vs 8.45%.

Period Opportunity Equity S&P 500
Last Week (07/10–07/17) -1.16% -1.55%
MTD 0.39% -0.52%
QTD 0.39% -0.52%
YTD 10.64% 9.64%
1 Year 27.83% 19.85%
3 Years 23.70% 19.74%
5 Years 6.88% 13.12%
10 Years 14.41% 15.10%
Since Inception (Annualized) 8.71% 8.45%

Oil Prices Boost Seadrill, Multiple Stocks Hit New Highs

RPRX and CVS hit 52-week highs, ADBE broke above its 50-day moving average, CHYM reclaimed its 200-day moving average, and SDRL rose 6.7% following Brent crude.

  • Royalty Pharma plc (RPRX) (not specified): TD Cowen raised its target from $50 to $65 (12% upside); the stock hit a 52-week high, with a weekly net return of 3.1%.
  • Chime Financial Inc (CHYM) (not specified): reclaimed its 200-day moving average, with a weekly net return of 6.7%.
  • Adobe Inc. (ADBE) (not specified): broke above its 50-day moving average on limited news, with a weekly net return of 6.1%.
  • Seadrill Limited (SDRL) (not specified): moved higher following Brent crude's 6.7% weekly gain, with a weekly net return of 6.4%.
  • CVS Health Corp (CVS) (not specified): Wells Fargo raised its target from $103 to $123 (14% upside); the stock hit a 52-week high, with a weekly net return of 3.2%.

Strong Earnings, Citi and United Fall Against the Trend

The author uses the heading to highlight this week's contrast — United fell 8.4% despite beating expectations and raising guidance, while Citi also fell 8.1% despite a significant beat.

Citigroup Inc. (C) (not specified): weekly net return of -8.1%, falling below its 50-day moving average, despite revenue of $24.8B beating the expected $23.7B and EPS of $3.15 well above the expected $2.70. Management reiterated its FY26 ROTCE target of 10–11%, while 1H26 actual results were approximately 13%; a new $30B buyback program was authorized, with $4B repurchased during the quarter (2% of market cap) and $10.3B repurchased year-to-date (5% of market cap). Jefferies maintained a Buy rating but cut its target from $180 to $165 (28% upside), citing expectations of lower 2H26 ROTCE; the firm still expects ROTCE to reach 14–15% in FY27–28.

United Airlines Holdings, Inc. (UAL) (not specified): weekly net return of -8.4%, despite revenue of $17.7B beating the expected $17.5B and adjusted EPS of $1.99 beating the expected $1.85, while raising the midpoint of FY26 adjusted EPS guidance from $9 to $10. JP Morgan raised its target from $156 to $203 (76% upside), expecting premium airlines to continue outperforming low-cost carriers and believing the premium segment may be on the verge of a broader re-rating cycle.

Nvidia Falls Below 50-Day Line, Precigen Declines

NVDA fell 3.9% for the week and broke below its 50-day moving average; Wells Fargo still maintains a $315 target; PGEN declined on limited news, with warrants and stock down 6.4% and 7.0%, respectively.

Nvidia Corp (NVDA) (not specified): weekly net return of -3.9%, falling below its 50-day moving average. Wells Fargo maintains a $315 target (55% upside) citing long-term growth trajectory, and believes NVDA should not trade at a discount to the Philadelphia Semiconductor Index (SOX) on a P/E basis.

Precigen, Inc. (PGEN) (not specified): declined on limited news; Precigen Warrant 2034 fell 6.4% for the week, while the stock fell 7.0%.

This Week's Position Moves

Position Direction Weekly Net Return Key Information
Royalty Pharma (RPRX) Not specified +3.1% TD Cowen target $50→$65, 52-week high
Chime Financial (CHYM) Not specified +6.7% Reclaimed 200-day moving average
Seadrill (SDRL) Not specified +6.4% Followed Brent crude up 6.7%
Adobe (ADBE) Not specified +6.1% Broke above 50-day moving average
CVS Health (CVS) Not specified +3.2% Wells Fargo target $103→$123, 52-week high
Citigroup (C) Not specified -8.1% Revenue/EPS both beat; $30B new buyback; Jefferies target $180→$165
United Airlines (UAL) Not specified -8.4% Beat and raised guidance; JP Morgan target $156→$203
Precigen (PGEN) Not specified -7.0% Declined on limited news; warrants -6.4%
Nvidia (NVDA) Not specified -3.9% Broke below 50-day line; Wells Fargo maintains $315 target

Position Moves

Ticker Direction Analyst Take Key Data
Citigroup (C) Not indicated Earnings beat significantly but the stock fell against the trend; Jefferies cut its price target Weekly -8.1%; Revenue $24.8B vs. estimate $23.7B, EPS $3.15 vs. estimate $2.70; New $30B buyback, QTD buyback $4B (2% of market cap), YTD buyback $10.3B (5% of market cap); Jefferies PT $180→$165
United Airlines (UAL) Not indicated Beat expectations and raised guidance, yet fell sharply; JP Morgan significantly raised its price target Weekly -8.4%; Revenue $17.7B vs. estimate $17.5B, adjusted EPS $1.99 vs. estimate $1.85; FY26 guidance midpoint $9→$10; JP Morgan PT $156→$203
Royalty Pharma (RPRX) Not indicated TD Cowen raised its price target; stock hit a 52-week high Weekly +3.1%; PT $50→$65 (12% upside)
Chime Financial (CHYM) Not indicated Reclaimed the 200-day moving average Weekly +6.7%
Seadrill (SDRL) Not indicated Rallied in tandem with Brent crude Weekly +6.4%; Brent crude +6.7% for the week
Adobe (ADBE) Not indicated Broke above the 50-day moving average on limited news flow Weekly +6.1%
CVS Health (CVS) Not indicated Wells Fargo raised its price target; stock hit a 52-week high Weekly +3.2%; PT $103→$123 (14% upside)
Nvidia (NVDA) Not indicated Fell below the 50-day moving average; Wells Fargo maintained its price target Weekly -3.9%; PT maintained at $315 (55% upside)
Precigen (PGEN) Not indicated Moved lower on limited news flow Stock: weekly -7.0%; warrants (2034): weekly -6.4%