QXO (QXO) Surged on Completion of $11B Acquisition Deal

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy’s unmanaged benchmark, the S&P 500 Index’s 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio’s performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as QXO, Inc. (NYSE:QXO). QXO, Inc. (NYSE:QXO) is a roofing, waterproofing, and other building products distributor. The one-month return of QXO, Inc. (NYSE:QXO) was -8.41%, and its shares lost 62.82% of their value over the last 52 weeks. On July 17, 2025, QXO, Inc. (NYSE:QXO) stock closed at $21.79 per share with a market capitalization of $14.607 billion.

Patient Capital Opportunity Equity Strategy stated the following regarding QXO, Inc. (NYSE:QXO) in its second quarter 2025 investor letter:

“QXO, Inc. (NYSE:QXO) was the top contributor to performance during the quarter following the completion of its $11B acquisition of Beacon Roofing in April. This marks the first of what is expected to be a series of acquisitions, as the company pursues a roll-up strategy in the highly fragmented building products distribution industry. QXO is leveraging a proven playbook that its management team has successfully executed across other sectors. With a strong track record and investor confidence, the company benefits from the ability to raise capital on attractive terms, giving it a competitive edge vs peers. Furthermore, management has proven their price discipline walking away from a bidding war for GMS Inc., which was ultimately acquired by Home Depot. We view this disciplined approach as a testament to management’s long-term focus. Over the next decade, QXO is targeting more than $50B in annual revenue. We have high conviction in Brad Jacobs’ leadership and believe the company is well positioned to become a long term compounder.”

In another article, we covered QXO, Inc. (NYSE:QXO) and shared the list of best debt-free stocks to invest in. Patient Capital Management added QXO, Inc. (NYSE:QXO) to its portfolio during Q3 2024. In addition, please check out our hedge fund investor letters Q2 2025 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.