Last week, the Opportunity Equity strategy gained 0.59%, outperforming the S&P 500’s -0.29% loss. (Exhibit 1). The strategy ended the week up 1.41% YTD, 352 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 1/14/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (1/7 - 1/14) | 0.59% | -0.29% |
| MTD | 1.41% | -2.11% |
| QTD | 1.41% | -2.11% |
| YTD | 1.41% | -2.11% |
| Inception (annualized since 6/26/00) | 8.30% | 7.61% |
Source: Bloomberg, Miller Value Partners
Ovintiv Inc (OVV) rose as gas prices moved higher. Truist raised their price target on the name from $50 to $53 (upside of 34%), while Scotiabank upgraded the name to Sector Outperform and raised its price target to $46 from $44 (17% upside). Diamondback Energy Inc (FANG) also rose in sympathy with higher oil prices. Truist raised their price target on the name from $150 to $165 (upside of 31%), while Scotiabank raised its price target to $135 from $125 (7% upside). Taylor Morrison Home Corp (TMHC) rose in sympathy with the rest of the homebuilding sector after KB Home reported strong earnings results and released robust guidance for the upcoming fiscal year. Splunk (SPLK) rose despite Barclays lowering its price target on the name to $160 from $184, maintaining its overweight rating (35% upside). There was limited news on JD.com Inc (JD 1/24 C75).
Exhibit 2: Significant Contributors to Performance, 1/7/22 - 1/14/22
| Name | Type | Return |
| Ovintiv Inc | Equity | 9.3% |
| Diamondback Energy Inc | Equity | 6.3% |
| JD 1/24 C75 | Derivative | 15.5% |
| Taylor Morrison Home Corp | Equity | 6.3% |
| Splunk Inc | Equity | 6.8% |
Source: Miller Value Partners
WW International (WW) fell after Craig Hallum downgraded the stock to Hold from Buy, with a Price Target of $18 (36% upside) noting a sluggish start to the new year for diet and fitness providers. JP Morgan (JPM) fell through its 50, 100, and 200-day moving averages despite reporting Q4 2021 EPS of $3.33 vs consensus of $2.98. The Bank announced a ramp in investment and employee compensation, raising expenses by $6Bn pressuring near-term ROTCE to below 17%. The RealReal, Inc. (REAL) fell after Stifel lowered its price target on the name to $15 from $16 (45% upside) and B. Riley lowered its price target to $12 (16% upside). There was limited news on Farfetch Ltd (FTCH) and Stitch Fix, Inc. (SFIX).
Exhibit 3: Significant Detractors from Performance, 1/7/22 - 1/14/22
| Name | Type | Return |
| Farfetch Ltd | Equity | -7.5% |
| WW International Inc | Equity | -7.4% |
| JP Morgan Chase & Co. | Equity | -5.5% |
| Stitch Fix, Inc. | Equity | -12.7% |
| The RealReal, Inc. | Equity | -10.1% |
-Source: Miller Value Partners
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1The performance figures reflect the results of a representative account net of management fee and certain other expenses. For important additional information about Opportunity Equity performance, please click on the Opportunity Equity Composite Performance Disclosure. The performance returns shown in this report are preliminary and are subject to revision. Past performance is no guarantee of future results.
Significant Contributors and Significant Detractors are the Strategy holdings that had the greatest effect on Strategy performance for the week. Holdings that have been in the Strategy since the end of the most recent calendar quarter are identified by name. For information on how Contributor/Detractor data were calculated and a list showing the contribution to the Strategy's weekly performance of each investment held at such quarter end, contact us.
Any views expressed are subject to change at any time, and Miller Value Partners disclaims any responsibility to update such views. The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. Past performance is no guarantee of future results, and there is no guarantee dividends will be paid or continued. Content may not be reprinted, republished or used in any manner without written consent from Miller Value Partners.
©2022 Miller Value Partners, LLC
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