Last week, the Opportunity Equity strategy rose 2.82%, outperforming the S&P 500’s 0.55% gain (Exhibit 1). The strategy ended the week up 16.51% YTD, or 454 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 10/18/191
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (10/11 - 10/18) | 2.82% | 0.55% |
| MTD | 3.10% | 0.41% |
| QTD | 3.10% | 0.41% |
| YTD | 16.51% | 21.05% |
| Inception (annualized since 6/26/00) | 6.77% | 15.72% |
Source: Bloomberg, Miller Value Partners
Endo International plc (ENDP) and Teva Pharmaceuticals (TEVA) gained over the week, with Teva crossing above the 50-day moving average, after it was reported that that drug makers and distributors were nearing a $50b settlement that would release Amerisource Bergen, Cardinal Health, McKesson Corp., Johnson & Johnson, and Teva from lawsuits. ADT Inc. (ADT) announced a partnership to integrate mobile safety solutions into the Lyft platform while later in the week it announced the acquisition of I-View Now, a video alarm verification service. Bausch Health Companies Inc. (BHC) crossed above the 50 and 100-day moving average. Citron Research published a positive piece on BHC expecting it to go to $40 stating that it has become the most compelling story in pharma. There was minimal news on Lennar Corp. (LEN).
Exhibit 2: Significant Contributors to Performance, 10/11/19 - 10/18/19
| Name | Type | Return |
| Endo International plc | Equity | 31.6% |
| ADT Inc. | Equity | 12.2% |
| Bausch Health Companies Inc. | Equity | 9.3% |
| Lennar Corp. | Equity | 5.5% |
| Teva Pharmaceutical | Equity | 8.7% |
Source: Miller Value Partners
Ziopharm Oncology Inc. (ZIOP) crossed below the 200-day moving average. A negative report was published on Seeking Alpha stating the sketchy product development track record. The company appointed Chris Bowden, CMO of Agios Pharmaceuticals, to the Board of Directors. Micron Technology Inc. (MU) pulled back after inSpectrum Tech showed that spot prices for DRAM memory chips fell 2% in the latest week. The company also appointed Paul Marosvari as Chief Accounting Officer. There was minimal news on Intrexon Corp. (XON), Quotient Technology (QUOT), and GTY Technology Holdings Inc. (GTYH).
Exhibit 3: Significant Detractors from Performance, 10/11/19 - 10/18/19
| Name | Type | Return |
| Intrexon Corp. | Equity | -16.1% |
| Ziopharm Oncology Inc. | Equity | -7.0% |
| Micron Technology Inc. | Equity | -3.6% |
| Quotient Technology Inc. | Equity | -3.1% |
| GTY Govtech Inc. | Equity | -13.4% |
Source: Miller Value Partners
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.
©2019 Miller Value Partners, LLC
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