Last week, the Opportunity Equity strategy gained 6.59%, outperforming the S&P 500’s 1.54% rise (Exhibit 1). The strategy ended the week up 4.83% YTD, 30 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 10/2/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (9/25 - 10/2) | 6.59% | 1.54% |
| MTD | 2.52% | -0.42% |
| QTD | 2.52% | -0.42% |
| YTD | 4.83% | 5.13% |
| Inception (annualized since 6/26/00) | 7.44% | 6.26% |
Source: Bloomberg, Miller Value Partners
Farfetch Ltd (FTCH) crossed above the 50-day moving average. DXC Technology Company (DXC) crossed above the 100-day moving average after closing the sale of its US State and Local Health and Human Services business to Veritas Capital for $5B in cash. The company plans to use the proceeds to pay down debt. Taylor Morrison Home Corp. (TMHC) crossed above the 50-day moving average as August pending home sales rose 9% sequentially above the Street’s expectations for 3%. On a YoY basis, pending home sales rose 24.2% following last month’s 15.5% rise. There was minimal news on OneMain Holdings Inc. (OMF).
Exhibit 2: Significant Contributors to Performance, 9/25/20 - 10/2/20
| Name | Type | Return |
| Farfetch Ltd | Equity | 13.0% |
| *New Security* | Derivative | 27.5% |
| DXC Technology Company | Equity | 12.5% |
| Taylor Morrison Home Corp. | Equity | 10.5% |
| OneMain Holdings Inc. | Equity | 12.8% |
Source: Miller Value Partners
There was minimal news on Flexion Therapeutics (FLXN) and Energy Transfer LP (ET).
Exhibit 3: Significant Detractors from Performance, 9/25/20 - 10/2/20
| Name | Type | Return |
| Flexion Therapeutics | Equity | -8.1% |
| *New Security* | Equity | -4.0% |
| *New Security* | Equity | -1.1% |
| Energy Transfer LP | Equity | -1.1% |
| *New Security* | Derivative | -1.3% |
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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