Last week, the Opportunity Equity strategy gained 5.58%, outperforming the S&P 500’s 3.89% increase (Exhibit 1). The strategy ended the week up 10.67% YTD, 150 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 10/9/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (10/2 - 10/9) | 5.58% | 3.89% |
| MTD | 8.23% | 3.46% |
| QTD | 8.23% | 3.46% |
| YTD | 10.67% | 9.22% |
| Inception (annualized since 6/26/00) | 7.72% | 6.45% |
Source: Bloomberg, Miller Value Partners
Precigen (PGEN) stock jumped last week as Merck KGaA’s wholly owned subsidiary Ares Trading elected to voluntarily convert a $25m note earlier than its December 2020 convert date. The strong week moved shares across the 50-day, 100-day, and 200-day moving averages. Stitch Fix Inc. (SFIX) rose over the week despite a Director of the board selling ~$10M worth of stock. DXC Technology Company (DXC) crossed above the 50-day moving average as IBM announced the tax-free spin-off of their Managed Infrastructure Services business (“NewCo”) with many speculating on a potential merger between DXC and the “NewCo”. OneMain Holdings Inc. (OMF) rose as Credit Suisse raised their price target to $40 from $38, upside of 9.9% followed by JPMorgan raising their price target to $41 from $29, upside of 12.6%. Amazon.com, Inc. (AMZN) crossed above the 50-day moving average as analysts speculate on the potential outcome of Prime Day, which was pushed back to Oct. 13-14th from its typical August timeframe.
Exhibit 2: Significant Contributors to Performance, 10/2/20 - 10/9/20
| Name | Type | Return |
| Precigen Inc. | Equity | 51.7% |
| Stitch Fix, Inc. | Equity | 14.2% |
| DXC Technology Company | Equity | 9.2% |
| OneMain Holdings Inc. | Equity | 9.2% |
| Amazon.com Inc. | Equity | 5.2% |
Source: Miller Value Partners
RH (RH) fell -3.5% on the week despite a price target increase from Barclays, who raised their target to $473 from $446, upside of 27.3% Vroom, Inc (VRM) fell as Exane BNP Paribas initiated coverage with an underperform rating and a price target of $34, downside of 31.3%.
Exhibit 3: Significant Detractors from Performance, 10/2/20 - 10/9/20
| Name | Type | Return |
| *New Security* | Equity | -5.7% |
| *New Security* | Derivative | -2.5% |
| RH | Equity | -3.5% |
| Vroom, Inc. | Equity | -2.0% |
| *New Security* | Equity | -1.2% |
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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