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Patient Capital ManagementArticle14 Sep 2026Source: patientcapitalmanagement.com

Opportunity Equity Strategy Update for 09/04/2026 – 09/11/2026

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 report covers Patient Capital's fund performance for the week ending September 11, 2026. The fund lost 3.12%, underperforming the benchmark's 0.78% drop, but is up 14.72% year-to-date. The manager doesn't give a clear market view, but AI stocks like Meta, Broadcom, and Nvidia drove gains, while rising interest rates hurt QXO. Key holdings: Meta (launched an AI assistant, stock rose, JPMorgan raised target to $820), Royalty Pharma (a drug trial failed, stock fell 8.4%), and Nvidia (analyst sees attractive valuation, target $300).

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

Patient Capital's Opportunity Equity Strategy representative account fell 3.12% last week, underperforming the S&P 500's 0.78% decline, but is still up 14.72% year-to-date, leading the S&P 500 by 195 basis points. Among core holdings, Meta Platforms (META) broke above its 200-day moving average foll

~8 min full read · 6 sections
Deep Analysis

Monthly Scorecard

Month: -3.12% vs Benchmark -0.78%, Year-to-Date: +14.72%.

Metric Fund Benchmark
Last Week (09/04-09/11) -3.12% -0.78%
Month-to-Date -1.94% -0.32%
Quarter-to-Date +4.10% +2.33%
Year-to-Date +14.72% +12.77%
1 Year +19.02% +17.61%
3 Years +28.30% +21.08%
5 Years +8.51% +13.03%
10 Years +13.94% +15.56%
Since Inception (Annualized) +8.81% +8.52%

Who Contributed, Who Detracted

Top Contributors: Meta Stock +5.1%, Meta Options +17.0%, Broadcom +1.2%, Citigroup +0.8%, Energy Transfer +0.2%. Top Detractors: Adyen -9.5%, Royalty Pharma -8.4%, QXO -7.7%, Nvidia -5.2%, UnitedHealth -4.5%.

Position Contribution/Detraction One-Sentence Attribution
Meta Platforms (META) +5.1% (Stock) / +17.0% (Options) Launched a personal assistant, broke above the 200-day moving average, JPMorgan raised its price target to $820.
Broadcom (AVGO) +1.2% Piper Sandler initiated coverage with a Buy rating and a $460 target, noting it holds ~75% of the ASIC chip market.
Citigroup (C) +0.8% Goldman Sachs raised its price target to $175, arguing large banks benefit from increased trading volumes driven by AI buildout.
Energy Transfer (ET) +0.2% Hit a 52-week high; Stifel resumed coverage with a Buy rating and a $25 target.
Adyen (ADYEN) -9.5% No clear news catalyst; broke below the 50-day moving average but found support at the 100-day moving average.
Royalty Pharma (RPRX) -8.4% Phase 3 trial failure for its asset Pelacarsen; broke below the 50-day moving average.
QXO (QXO) -7.7% 10-year Treasury yield hit a new high; stock fell to a 52-week low.
Nvidia (NVDA) -5.2% Piper Sandler initiated coverage with a Buy rating and a $300 target, citing attractive current valuation.
UnitedHealth (UNH) -4.5% No clear news catalyst; broke below the 100-day moving average.

Individual Stock Commentary

Meta Platforms (META): Thesis — JPMorgan believes Meta is in the early stages of monetizing frontier AI models, and its 4 billion user base offers significant long-term potential for customer-facing AI products. Key Numbers: Price target raised from $640 to $820 (27% upside), rating upgraded from Neutral to Overweight. Quote: "JPM sees significant long-term potential for customer-facing AI products to become a meaningful revenue stream."

Royalty Pharma (RPRX): Thesis — The Phase 3 trial failure of Pelacarsen was the main drag, but UBS notes this asset represents only a very small percentage of expected revenue. Key Numbers: UBS maintains a $66 price target (13% upside) and a Buy rating. Quote: "noting this was a very small percentage of expected revenue."

Broadcom (AVGO): Thesis — Piper Sandler views Broadcom as a key player in AI inference, arguing that market concerns over increased competition have led to an excessive selloff. Key Numbers: Price target $460 (27% upside), Buy rating, holds ~75% of the ASIC chip market.

Nvidia (NVDA): Thesis — Piper Sandler sees product innovation, leading market share, and a $2T total addressable market by 2030 as growth drivers, with the current P/E at a significant discount to its five-year average offering an attractive entry point. Key Numbers: Price target $300 (37% upside), Buy rating.

Energy Transfer (ET): Thesis — Stifel believes its diversified portfolio benefits from rising natural gas demand from the power sector, increased Permian Basin production, and global LNG export growth. Key Numbers: Price target $25 (16% upside), Buy rating.

Citigroup (C): Thesis — Goldman Sachs argues that increased trading volumes and the capital-intensive nature of AI buildout favor large banks. Key Numbers: Price target raised from $161 to $175 (26% upside).

QXO (QXO): Thesis — The stock decline is linked to the macro interest rate environment. Key Numbers: Morgan Stanley maintains a $35 price target (184% upside).

UnitedHealth (UNH): Thesis — Wells Fargo maintains a positive view after discussions with OptumHealth management. Key Numbers: Price target $526 (39% upside), mentions earlier-than-expected margin improvement and a return to revenue growth by 2027.

How the Manager Views the Market

[Neutral to Cautious] The report does not make an overall macro market judgment, but observations from position performance and stock commentary suggest:

1. AI Theme Remains Core Driver: AI-related positions like Meta, Broadcom, and Nvidia received positive analyst reviews and were the main contributors to the portfolio.

2. Interest Rate Sensitivity Rising: QXO declined as the 10-year Treasury yield hit a new high, indicating that the interest rate environment is pressuring some holdings.

3. Idiosyncratic Risk Events Dominate Short-Term Volatility: Royalty Pharma's clinical failure and Adyen's decline without news show that short-term portfolio performance is heavily influenced by non-systematic factors.

Position Shifts: Where to Add, Where to Reduce

The report does not disclose specific position adjustments (new positions/additions/reductions/liquidations), only providing position performance data. Inferences can be drawn indirectly from analyst rating changes:

  • Meta: JPMorgan upgraded to Overweight, positive direction.
  • Broadcom: Piper Sandler initiated with a Buy rating, positive direction.
  • Nvidia: Piper Sandler initiated with a Buy rating, positive direction.
  • Energy Transfer: Stifel resumed coverage with a Buy rating, positive direction.
  • Citigroup: Goldman Sachs raised its price target, positive direction.
  • Royalty Pharma: UBS maintains a Buy rating, direction unchanged.
  • QXO: Morgan Stanley maintains a Buy rating, direction unchanged.
  • UnitedHealth: Wells Fargo maintains a positive view, direction unchanged.

Net Exposure/Long-Short Ratio/Leverage Changes: Not disclosed.

Fund Matters

  • Size Change: Not disclosed.
  • Investor Communications: None.
  • Risk Disclaimer: The report concludes with a standard disclaimer, emphasizing that past performance does not guarantee future results, views are subject to change, and the content does not constitute investment advice.