Patient Capital Adds to QXO Stake Amid 61% Share Price Drawdown

Patient Capital Management reported that its Patient Opportunity Equity Strategy increased its common equity position in QXO, Inc. (NYSE: QXO) by over 70% since the end of the second quarter, citing significant stock weakness as the primary driver for the accumulation. The Baltimore-based firm disclosed this move in its third-quarter 2026 investor letter for the strategy, which outperformed the S&P 500 in the latest quarter, gaining 4.32% compared to the index's 2.30%.

QXO, a US-based distributor of roofing, waterproofing, and complementary building products, saw its shares close at $10.81 per share on October 09, 2026, reflecting a market capitalization of $11.22 billion. The stock has experienced substantial volatility, posting a one-month return of -13.34% and losing 43.27% over the past 52 weeks. Patient Capital noted that the shares have fallen 61% from their highs earlier in the year, a decline the firm attributed to a broader sell-off in the building products space driven by rising interest rates.

In the letter, the fund highlighted the track record of QXO CEO Brad Jacobs, describing him as a serial entrepreneur whose previous companies often presented buying opportunities during drawdowns. The strategy observed that stocks under Jacobs' leadership compounded at an average return of approximately 40% from the point of drawdown through the end of his tenure at those firms. Based on this history and the current valuation, Patient Capital stated it anticipates continuing to add to its position if the share price remains in its current range.

The strategy's performance reflects a broader market environment characterized by resilience despite rate risks. The fund noted that the S&P 500 has compounded at 16.9% per year since March 2009, while current valuations and the durability of AI-driven demand for computing capacity remain areas of investor scrutiny. The portfolio is concentrated in its top 10 holdings, a structure intended to maintain discipline in valuation and risk management amidst market volatility.

Data from Insider Monkey indicates that 83 hedge fund portfolios held QXO shares at the end of the second quarter, an increase from 65 in the previous quarter. While Patient Capital expressed confidence in QXO's potential, other analyses cited in the source suggest that certain AI stocks may offer greater upside with less downside risk. The fund's Q3 2026 letter is available for download, providing further details on its top five holdings and overall positioning for 2026.