Patient Capital Management, based in Baltimore, released its first-quarter 2026 investor letter for the “Patient Opportunity Equity Strategy,” available for download here. The strategy’s long-term value approach aims to build wealth over time. It returned -5.96% net of fees in Q1, compared to the S&P 500’s -4.33% return. As per three-factor performance attribution model the underperformance was due to selection and interaction effects, partly offset by allocation effects. The year started strongly with markets reaching an all-time high in late January, then reversed. AI fears sparked a “SaaS pocalypse,” while ‘hyperscalers’ CAPEX worries affected returns. Software debt and illiquid markets unsettled private credit, leading most BDCs to restrict redemptions. Middle East conflicts pushed crude oil prices higher, further increasing the risk of inflation. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Patient Opportunity Equity Strategy highlighted stocks like Noble Corporation plc (NYSE:NE). Noble Corporation plc (NYSE:NE) is a US-based offshore drilling contractor for the oil and gas industry. On April 10, 2026, Noble Corporation plc (NYSE:NE) closed at $48.93 per share. One-month return of Noble Corporation plc (NYSE:NE) was 5.89%, and its shares gained 151.96% over the past 52 weeks. Noble Corporation plc (NYSE:NE) has a market capitalization of $7.80 billion.
Patient Opportunity Equity Strategy stated the following regarding Noble Corporation plc (NYSE:NE) in its Q1 2026 investor letter:
“Noble Corporation plc (NYSE:NE) and Seadrill Limited (SDRL) were top contributors during the first quarter, gaining 75.8% and 31.5%, respectively. Both stocks benefited from the spike in energy prices driven by escalating conflict in the Middle East, which renewed investor focus on the strategic importance of offshore supply. Noble is a leading offshore drilling contractor operating in the ultra-deepwater and harsh-environment segments, while Seadrill is the third largest independent offshore driller with a clean balance sheet following its emergence from bankruptcy in 2022. We think the offshore drilling market is attractive on a long-term basis, particularly as growth in land-based oil production continues to slow. Industry dynamics have steadily improved since 2019, with significant consolidation reducing the number of major players to just three. At the same time, nearly half of all deepwater rigs were scrapped over the past decade, and with minimal current capital investment, supply growth is expected to remain constrained for years to come. Both companies are well positioned to benefit as contract rates normalize upward and offshore drilling continues to play a growing role in global energy security. Noble continues to execute on its financial commitments, returning a substantial portion of free cash flow to shareholders through its dividend and buyback program, while Seadrill remains well positioned to either lead further industry consolidation or emerge as a compelling acquisition target.”
Noble Corporation plc (NYSE:NE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Noble Corporation plc (NYSE:NE) at the end of the fourth quarter, compared to 47 in the previous quarter. While we acknowledge the risk and potential of Noble Corporation plc (NYSE:NE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Noble Corporation plc (NYSE:NE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Noble Corporation plc (NYSE:NE) and shared the list of best oil & gas drilling stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
