Last week, the Opportunity Equity strategy lost -9.45%, underperforming the S&P 500’s -5.67% decline. (Exhibit 1). The strategy ended the week down -8.18% YTD, 52 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 1/21/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (1/14 - 1/21) | -9.45% | -5.67% |
| MTD | -8.18% | -7.66% |
| QTD | -8.18% | -7.66% |
| YTD | -8.18% | -7.66% |
| Inception (annualized since 6/26/00) | 7.80% | 7.31% |
Source: Bloomberg, Miller Value Partners
JD.com (JD) announced a strategic partnership with Shopify, allowing Shopify merchants to sell into China via JD Worldwide. In addition, Shopify merchants will be able to source more easily from Chinese suppliers through JD Sourcing improving the convenience and reliability of cross-border commerce. Sofi Technologies, Inc (SOFI) rose after the Comptroller of the Currency (OCC) and the Federal Reserve approved SoFi’s application to become a Bank Holding Company through its proposed acquisition of Golden Pacific Bancorp, Inc. There was limited news on Shapeways Holdings, Inc (SHPW) and Pangaea One, L.P.
Exhibit 2: Significant Contributors to Performance, 1/14/22 - 1/21/22
| Name | Type | Return |
| JD 1/24 C75 | Derivative | 4.8% |
| SoFi Technologies, Inc. | Equity | 5.2% |
| Shapeways Holdings, Inc. | Equity | 6.4% |
| Cash | Equity | 0.0% |
| Pangaea One, L.P. | Equity | 0.0% |
Source: Miller Value Partners
Amazon.com Inc (AMZN) announced the opening of its first bricks and mortar clothing store, dubbed Amazon Style. JP Morgan maintained its “Overweight” rating on the company and its $4,350 price target (53% upside). Norwegian Cruise Line Holdings Ltd. (NCLH) fell through its 50-day moving average. The company announced its plan to join the CDC’s voluntary Covid-19 risk mitigation program. BTIG lowered its price target on Farfetch Ltd (FTCH) to $45 from $50 (108% upside) and Keybanc lowered its price target from $60 to $40 (88% upside) while both maintaining overweight ratings. DXC Technology Company (DXC) fell below its 50-day and 100-day moving averages. The company announced the formation of a new global DXC ServiceNow Strategic Business Group built on top of DXC Platform X, its data-driven intelligent automation platform.
Exhibit 3: Significant Detractors from Performance, 1/14/22 - 1/21/22
| Name | Type | Return |
| Amazon.com Inc | Equity | -12.0% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -12.6% |
| Farfetch Ltd | Equity | -20.5% |
| AMZN C3050 1/23 | Derivative | -41.5% |
| DXC Technology Company | Equity | -10.2% |
-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. Portfolio composition is shown as of a point in time and is subject to change without notice.
©2022 Miller Value Partners, LLC
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