Last week, the Opportunity Equity strategy fell -1.99%, outperforming the S&P 500’s -2.19% decline. (Exhibit 1). The strategy ended the week up 5.99% YTD, 1,126 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 10/1/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (9/24 - 10/1) | -1.99% | -2.19% |
| MTD | 1.49% | 1.15% |
| QTD | 1.49% | 1.15% |
| YTD | 5.99% | 17.26% |
| Inception (annualized since 6/26/00) | 8.80% | 7.35% |
Source: Bloomberg, Miller Value Partners
Diamondback Energy Inc. (FANG) and Energy Transfer (ET) rose in sympathy with oil prices with ET rising above the 50-day moving average as BofA initiated on the name with a buy rating and a $14 price target (upside of 44%). Teva Pharmaceuticals (TEVA) rose through the 50-day moving average after announcing an opioid settlement with Louisiana where the company will pay the state $15M over an 18-year period with an additional donation of opioid addiction and recovery treatment valued at $3M. Tivity Health Inc. (TVTY) crossed through the 50-day moving average after announcing the authorization of a $100M buyback program, representing 8.5% of shares outstanding. Delta Air Lines Inc. (DAL) rose above the 200-day moving average.
Exhibit 2: Significant Contributors to Performance, 9/24/21 - 10/1/21
| Name | Type | Return |
| Diamondback Energy Inc. | Equity | 11.4% |
| Teva Pharmaceuticals | Equity | 8.4% |
| Energy Transfer | Equity | 5.1% |
| Tivity Health Inc. | Equity | 4.8% |
| Delta Air Lines Inc. | Equity | 4.3% |
Source: Miller Value Partners
Matterport Inc. (MTTR) was initiated at Berenberg with a buy rating and price target of $25, upside of 34%. Amazon.com (AMZN) fell through the 50, 100 and 200-day moving average. RBC initiated on the name with an Outperform rating and price target of $4,150, upside of 26%. There was limited news on Farfetch (FTCH).
Exhibit 3: Significant Detractors from Performance, 9/24/21 - 10/1/21
| Name | Type | Return |
| *New Security* | Derivative | -21.1% |
| Matterport Inc. | Equity | -16.3% |
| *New Security* | Equity | -26.4% |
| Farfetch LTD | Equity | -8.9% |
| AMZN C3050 1/23 | Derivative | -15.5% |
-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.
©2021 Miller Value Partners, LLC
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