Patient Capital's Equity Strategy Outperforms Amid Market Volatility

Patient Capital Management's "Patient Capital Opportunity Equity Strategy" returned 11.8% in Q1 2024, outperforming the S&P 500 (10.6%). Coinbase Global (COIN) contributed to the outperformance, benefiting from the approval of Bitcoin ETFs. Despite a recent 1-month return of -19.25%, COIN's shares have gained 312.53% over the past year due to its strong position in the crypto ecosystem and long-term growth potential in the crypto market.

Patient Capital Opportunity Equity Strategy Q1 2024 Investor Letter

Overview

Patient Capital Management, a value investment firm, recently released its investor letter for the first quarter of 2024 for its Patient Capital Opportunity Equity Strategy. The strategy outperformed the S&P 500 during the quarter, returning 11.8% net of fees compared to the S&P 500's 10.6% return. This outperformance was primarily driven by stock selection and allocation effects, partially offset by interaction effects.

Top Holdings

The strategy's top holdings for the first quarter of 2024 included Coinbase Global, Inc. (NASDAQ: COIN). Coinbase, headquartered in Wilmington, Delaware, provides financial infrastructure and technology for the crypto economy. As of April 22, 2024, COIN shares closed at $225.86 per share.

Coinbase Global, Inc. (COIN)

In the investor letter, Patient Capital Opportunity Equity Strategy discussed its investment in Coinbase Global, Inc. (COIN), noting the company's role in the growing cryptocurrency industry. The firm highlighted the approval of 11 new spot Bitcoin ETFs, which opened Bitcoin to new investors and resulted in significant inflows into Bitcoin assets. Coinbase, as a major player in the crypto ecosystem, benefited from these developments.

The firm also emphasized Coinbase's efforts in building a robust platform for crypto, investing throughout the recent crypto winter to widen its competitive advantage. The firm believes that COIN has the potential to become the leading platform for crypto trading and other services.

Hedge Fund Interest

According to the investor letter, Coinbase Global, Inc. (COIN) was held by 41 hedge fund portfolios at the end of the fourth quarter, up from 27 in the previous quarter. This indicates growing interest in the company among hedge funds.

Conclusion

Patient Capital Opportunity Equity Strategy's investment in Coinbase Global, Inc. (COIN) reflects the firm's belief in the potential of the cryptocurrency industry and Coinbase's position as a leading player in this space. While the firm acknowledges the volatility in the crypto market, it remains optimistic about COIN's long-term prospects.

Disclosure

The article is based on information from Insider Monkey and does not represent any endorsement or recommendation from the author or any other party. Investors should conduct their own due diligence before making any investment decisions.