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Patient Capital ManagementArticle10 Aug 2026Source: patientcapitalmanagement.com

Opportunity Equity Strategy Update for 7/31/2026 – 8/07/2026

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

A fund manager's weekly update says the fund gained 5.29% after fees last week, beating the S&P 500 (a U.S. large-cap index) by 1.7 percentage points; it is up 18.55% this year, still ahead of the index. No clear view on the whole market, but the tone is upbeat. Top highlights: Chime Financial jumped 26.6% after better-than-expected earnings and a raised full-year outlook; Nvidia rose 11.6% after SpaceX announced a partnership on an AI satellite project; CVS Health fell 8.4% even though its results and guidance beat, making it the biggest drag.

AI SummaryAI-generated · may contain errors · verify against the original

At a Glance

The author made no market-level directional call this period, but the portfolio performed strongly: +5.29% net of fees last week, outperforming the S&P by 170 basis points, and ahead by 446 basis points YTD. The report's tone is [optimistic].

  • The portfolio returned +5.29% net of fees last week (beating the S&P 500's +3.59% by 170 basis points); YTD it is +18.55%, leading the index by 446 basis points. However, it still trails the index over the past 5 years (+7.82% vs. +13.44%) and the past 10 years (+14.47% vs. +15.43%).
  • Contributors: Chime +26.6% (revenue of $670M and EPS of $0.25 beat expectations, with FY26 guidance raised), QXO +21.5% (Morgan Stanley reinstated coverage with a $35 price target), Precigen common shares/warrants +15.3%/+15.8% (EPS turned positive at $0.05, far exceeding expectations).
  • Nvidia +11.6%, after SpaceX announced a partnership with Nvidia on the Starmind AI satellite constellation project.
  • Detractors: CVS fell 8.4% despite beating expectations on both earnings and guidance (EPS $2.31 vs. $1.56 expected), the largest drag; Fiserv fell 2.8% due to lowered FY26 guidance.
  • The report discloses no portfolio-level position changes; all individual stock directions are marked "not specified."
~12 min full read · 5 sections
Deep Analysis

Last Week Outperformed the S&P by 170 bps, YTD Lead Extends to 446 bps

Last week the portfolio returned 5.29% net of fees, outperforming the S&P 500's 3.59% by 170 basis points; YTD rose to 18.55%, leading the index by 446 basis points.

The original text uses Exhibits 2/3 to list the week's main contributors and detractors: on the contributor side, Chime Financial (+26.6%), QXO (+21.5%), Precigen warrants (+15.8%) and common shares (+15.3%), and Nvidia (+11.6%) led the gains; on the detractor side were CVS Health (-8.4%), Seadrill (-3.6%), Royalty Pharma (-2.8%), Fiserv (-2.8%), and UnitedHealth (-1.8%).

Performance Comparison:

Period Portfolio (Net) S&P 500
Last Week (07/31–08/07) 5.29% 3.59%
MTD 5.29% 3.59%
QTD 7.57% 3.52%
YTD 18.55% 14.09%
1 Year 40.49% 23.83%
3 Years 27.57% 21.35%
5 Years 7.82% 13.44%
10 Years 14.47% 15.43%
Since Inception (Annualized, since 06/26/2000) 8.98% 8.60%

Data as of 08/07/26, sources: Bloomberg, Patient Capital. Over the long term, the portfolio still trails the index over the past 5 and 10 years, while modestly leading annualized returns since inception. The original text only shows individual stock price returns as the basis for contributions/detractors and does not disclose any portfolio-level position changes.

Chime, QXO, and Precigen Surge; Nvidia Gains SpaceX Partnership

All five major contributors rallied: Chime hit a 52-week high on better-than-expected earnings, QXO received coverage reinitiation from a major bank, Precigen posted an earnings surprise, and Nvidia was boosted by its SpaceX partnership.

  • Chime Financial Inc (CHYM) (direction not stated): the stock surged to a 52-week high on a beat-and-raise quarter — revenue of $670M (+30% y/y) versus expectations of $644M, and adjusted EPS of $0.25 versus expectations of $0.18; the company raised its FY2026 revenue guidance by $60M and adjusted EBITDA guidance by $46.5M (both at the midpoint). Canaccord raised its target price from $40 to $45 (55% upside), citing accelerating member growth and improved average revenue per user (ARPU) driving "impressive incremental margins."
  • QXO, Inc. (QXO) (direction not stated): Morgan Stanley reinitiated coverage with a $35 target price (117% upside), and the stock subsequently reclaimed its 50-day moving average.
  • Precigen, Inc. (PGEN) (direction not stated): posted revenue and earnings surprises well above expectations, sending the stock to a five-year high — revenue of $55M versus expectations of $28M, operating profit of $23M versus expectations of -$4M, and EPS of $0.05 versus expectations of -$0.01. HC Wainwright raised its target price from $14 to $18 (149% upside). The portfolio also holds Precigen warrants expiring in 2034 (derivative instruments), which rose 15.8% during the week, slightly more than the common stock.
  • Nvidia Corp (NVDA) (direction not stated): SpaceX announced plans to partner with Nvidia on the Starmind AI-computing satellite constellation project, pushing the stock back above its 50-day moving average.

CVS Fell Despite Strong Results; Fiserv Cuts Guidance

CVS fell 8.4% despite a beat-and-raise quarter, becoming the week's biggest detractor; Fiserv slid on guidance cuts, and UnitedHealth weakened in sympathy.

  • CVS Health Corp (CVS) (direction not stated): despite delivering a beat-and-raise quarter — revenue of $106B versus expectations of $100B, EPS of $2.31 versus expectations of $1.56, and raising FY2026 revenue guidance from >$405B to >$414B and the midpoint of EPS guidance from $6.34 to $6.94 — the stock broke below its 50-day moving average and fell 8.4% for the week. UBS raised its FY2026 EPS estimate and target price from $122 to $126 (32% upside). The author did not explain the divergence between the positive results and the stock's decline.
  • Royalty Pharma plc (RPRX) (direction not stated): strong earnings but the stock fell 2.8% — portfolio royalty receipts of $773M versus expectations of $762M, portfolio cash flow per share of $1.46 versus expectations of $1.26, and FY26 receipts guidance raised from $3,325M-$3,450M to $3,400M-$3,500M. Citi raised its target price from $66 to $70 (23% upside).
  • Seadrill Limited (SDRL) (direction not stated): followed Brent crude's -5.0% weekly decline, with the stock down 3.6%.
  • UnitedHealth Group (UNH) (direction not stated): moved in sympathy with CVS, broke below its 50-day moving average, and fell 1.8% for the week; the author attributed no other independent negative factors.
  • Fiserv, Inc. (FISV) (direction not stated): mixed results and weaker-than-expected guidance sent the stock down 2.8% — revenue of approximately $5B was broadly in line, while adjusted EPS of $1.84 missed expectations of $1.91; the company cut its FY26 adjusted EPS guidance midpoint from $8.15 to $7.30. RBC maintained a Buy rating but lowered its target price from $75 to $65 (24% upside), arguing that Fiserv is in a transition period, that FY26 may see the largest impact, and that operating leverage will return only from FY27 onward.

Appendix: Part 1 Position Moves Quick Reference

Ticker Weekly Price Return Original Direction Key Data/Event
Chime Financial (CHYM) +26.6% Not disclosed Revenue of $670M (+30% y/y) beat expectations; raised FY26 guidance; Canaccord target price $45
QXO (QXO) +21.5% Not disclosed Morgan Stanley reinitiated coverage, target price $35
Precigen (PGEN) +15.3% Not disclosed Revenue of $55M vs. expected $28M; EPS turned positive at $0.05; HC Wainwright target price $18
Precigen 2034 warrants +15.8% Not disclosed Rallied with the common stock, slightly outperforming it
Nvidia (NVDA) +11.6% Not disclosed SpaceX announced Starmind AI satellite constellation partnership
CVS Health (CVS) -8.4% Not disclosed Fell despite earnings beat; UBS target price $126
Royalty Pharma (RPRX) -2.8% Not disclosed Beat expectations and raised guidance; Citi target price $70
Seadrill (SDRL) -3.6% Not disclosed Dragged by Brent crude -5.0%
UnitedHealth (UNH) -1.8% Not disclosed Followed CVS below 50-day moving average
Fiserv (FISV) -2.8% Not disclosed EPS of $1.84 missed expectations; cut FY26 guidance; RBC target price $65

Position Moves

Ticker Direction Author's One-Line Take Key Data
Chime Financial (CHYM) Not stated Beat on both earnings and guidance, hit a 52-week high, listed as the #1 contributor Weekly +26.6%; revenue $670M (+30% y/y) vs. $644M expected, EPS $0.25 vs. $0.18 expected; FY26 revenue/EBITDA guidance raised by $60M/$46.5M, respectively; Canaccord target price $40→$45 (55% upside)
Precigen (PGEN) Not stated Earnings far exceeded market expectations, hit a 5-year high, listed as a major contributor Weekly +15.3%; revenue $55M vs. $28M expected, operating profit $23M vs. -$4M expected, EPS $0.05 vs. -$0.01 expected; HC Wainwright target price $14→$18 (149% upside)
Precigen 2034 Warrants Not stated As a derivatives holding, rallied sharply with the underlying stock, listed as a major contributor Weekly +15.8%, slightly more than the underlying stock (+15.3%); expires 2034
CVS Health (CVS) Not stated Beat on both earnings and guidance but shares fell 8.4% instead, listed as the biggest drag of the week; UBS raised its target price Weekly -8.4%; revenue $106B vs. $100B expected, EPS $2.31 vs. $1.56 expected; FY26 revenue guidance raised to >$414B, EPS guidance raised to $6.94; UBS target price $122→$126 (32% upside)
Fiserv (FISV) Not stated EPS missed, FY26 guidance cut, listed as a drag; RBC maintained Buy but cut its target price Weekly -2.8%; revenue of ~$5B roughly in line, adjusted EPS $1.84 vs. $1.91 expected; FY26 EPS guidance midpoint cut from $8.15 to $7.30; RBC target price $75→$65 (24% upside)
Royalty Pharma (RPRX) Not stated Beat expectations and raised FY26 guidance but still edged lower, listed as a drag; Citi raised its target price Weekly -2.8%; royalty receipts $773M vs. $762M expected, portfolio cash flow per share $1.46 vs. $1.26 expected; FY26 receipts guidance raised to $3,400M-$3,500M; Citi target price $66→$70 (23% upside)
QXO (QXO) Not stated Morgan Stanley resumed coverage, assigning 117% upside; shares reclaimed the 50-day moving average Weekly +21.5%; Morgan Stanley target price $35
Nvidia (NVDA) Not stated SpaceX announced a partnership on the Starmind AI satellite constellation project, and the news pushed the stock above the 50-day moving average Weekly +11.6%