Patient Capital's Q2 2025 Performance: Top Contributors and Detractors

Patient Capital Management's Q2 2025 Investment Review highlights top contributors and detractors. QXO Inc. and Coinbase Global Inc. contributed the most to the fund's performance, with net contributions of 287 and 235 BPS, respectively.

Patient Capital Management's Q2 2025 Investment Review has identified QXO Inc. and Coinbase Global Inc. as the top contributors to the fund's performance. QXO Inc. (QXO) contributed a net of 287 basis points (BPS), while Coinbase Global Inc. (COIN) contributed 235 BPS [1].

QXO Inc. (QXO)

QXO Inc. was the top contributor to performance during the quarter, following the completion of its $11B acquisition of Beacon Roofing in April. This acquisition marks the first of a series of acquisitions as the company pursues a roll-up strategy in the highly fragmented building products distribution industry. The company has a strong track record and investor confidence, enabling it to raise capital on attractive terms. Management's disciplined approach, demonstrated by walking away from a bidding war for GMS Inc., highlights their long-term focus. Over the next decade, QXO targets more than $50B in annual revenue, with high conviction in Brad Jacobs’ leadership [1].

Coinbase Global Inc. (COIN)

Coinbase Global Inc. (COIN) rebounded in the second quarter, tracking strength in both Bitcoin and the broader cryptocurrency market. The company's position is solidified by recent enhancements to its wallet, Base platform, and USD Coin. The Trump administration's passage of the GENIUS Act and the Strategic Bitcoin Reserve executive order have created a more crypto-friendly regulatory framework, further boosting Coinbase's prospects. The company's continued investment in innovation is expected to widen its competitive moat over time [1].

Top Detractors

The top detractors from the fund's performance were New Fortress Energy Inc. (NFE), Kosmos Energy Ltd. (KOS), Alibaba Group Holdings Ltd. (BABA), JD.com Inc. (JD), and Biogen Inc. (BIIB). These companies experienced declines due to various factors, including disappointing earnings, liquidity concerns, regulatory changes, and commodity price risks [1].

Conclusion

Patient Capital Management's Q2 2025 Investment Review provides valuable insights into the fund's performance, highlighting the significant contributions of QXO Inc. and Coinbase Global Inc. Understanding these top contributors and detractors can help investors make informed decisions about their portfolios.

References

[1] https://seekingalpha.com/article/4809335-patient-capitals-q2-2025-top-contributors-and-detractors