QXO Inc. Surges Following Completion of $11 Billion Acquisition Deal with Beacon Roofing Supply Inc.

Patient Capital Management's Patient Capital Opportunity Equity Strategy highlighted QXO Inc. (NYSE:QXO) as the top contributor to performance in Q2 2025, following its $11B acquisition of Beacon Roofing in April. QXO is pursuing a roll-up strategy in the building products distribution industry and has a proven playbook with a strong track record and investor confidence. The company is targeting over $50B in annual revenue over the next decade, and management has shown discipline in their approach. QXO shares lost 62.82% of their value over the last 52 weeks, but the company is well-positioned to become a long-term compounder.

In the second quarter of 2025, Patient Capital Management's Patient Opportunity Equity Strategy delivered a robust performance, generating a total return of 15.3% net of fees, compared to the S&P 500 Index's return of 10.9% [1]. The strategy's outperformance was attributed to selection effect, partially offset by allocation and interaction effects [1]. Among the top contributors to performance, QXO Inc. (NYSE:QXO) stood out, driven by its $11 billion acquisition of Beacon Roofing in April [1].

QXO Inc. is pursuing a roll-up strategy in the building products distribution industry, a proven approach that has garnered investor confidence. The company aims to achieve over $50 billion in annual revenue over the next decade, reflecting management's disciplined approach [1]. Despite a 62.82% decline in share value over the last 52 weeks, QXO Inc. remains well-positioned to become a long-term compounder due to its strategic positioning and strong track record [1].

Other notable contributors to the strategy's performance included Coinbase Global Inc. (COIN), Nvidia Corp. (NVDA), Dave & Buster’s Entertainment Inc. (PLAY), and Meta Platforms Inc. (META) [1]. These companies benefited from various factors, such as regulatory shifts in the crypto space and improved earnings results. Meanwhile, New Fortress Energy Inc. (NFE), Kosmos Energy Ltd (KOS), Alibaba Group Holdings (BABA), JD.com (JD), and Biogen Inc. (BIIB) were identified as detractors [1].

The strategy's sector allocation was notable, with overweight positions in Consumer Discretionary, Communication Services, Financials, Energy, Industrials, and Health Care sectors, and underweight positions in Real Estate, Utilities, Materials, Consumer Staples, and Information Technology [1]. This strategic allocation contributed to the portfolio's active share, which was around 93.6% by the end of the quarter [1].

Patient Capital Management's Patient Opportunity Equity Strategy continued to demonstrate its ability to identify and capitalize on opportunities in the market. By focusing on companies with long-term potential and disciplined management, the strategy achieved strong returns in a volatile market environment.

References:
[1] https://patientcapitalmanagement.com/articles/2q25_portfolio_activity_and_attribution