Last week, the Opportunity Equity strategy gained 5.96%, outperforming the S&P 500’s -2.30% gain (Exhibit 1). The strategy ended the week up 28.84% YTD, 1,432 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 11/27/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (11/20 - 11/27) | 5.96% | 2.30% |
| MTD | 26.55% | 11.44% |
| QTD | 26.00% | 8.48% |
| YTD | 28.84% | 14.52% |
| Inception (annualized since 6/26/00) | 8.47% | 6.65% |
Source: Bloomberg, Miller Value Partners
Farfetch Ltd. (FTCH) rose as BofA Securities raised their price target from $53 to $62 (upside of 15.7%). Uber Technologies. (UBER) benefitted from news that the US has awarded them an $810mm transportation contract along with Lyft. The stock moved higher as BofA Securities raised their price target on the stock from $49 to $56 (upside of 10.4%). DXC Technology Company (DXC) announced their partnership with Infinia ML to advance machine learning and data analytics. The partnership will work to help customers manage and drive strong performance and value from IT enterprises. Stitch Fix, Inc. (SFIX), and Precigen (PGEN) rallied on limited news during the week.
Exhibit 2: Significant Contributors to Performance, 11/20/20 - 11/27/20
| Name | Type | Return |
| Farfetch Ltd. | Equity | 14.1% |
| Stitch Fix, Inc | Equity | 17.4% |
| Uber C32 1/22 | Derivative | 9.6% |
| DXC Technology Company | Equity | 8.5% |
| Precigen Inc. | Equity | 18.7% |
Source: Miller Value Partners
Genworth Financial (GNW) fell sharply and prompted a circuit breaker on Wednesday as fears arose that the company’s proposed merger with China Oceanwide might once again fail to gain approval with the deadline looming at month end. Rocket Companies Inc. (RKT) fell despite news that refinance activity had one of the strongest weeks since April. Canada Goose Holdings (GOOS) was double downgraded at BTIG to sell due to lackluster sales, with a new price target of C$35, from C$50 (downside of 20.9%). Bausch Health Companies Inc. (BHC) fell slightly as they initiated a second Phase 3 study of their NOV03 treatment for dry eye disease. The treatment met their primary efficacy endpoint in Phase 2 results, and is a water and preservative free solution. Flexion Therapeutics. (FLXN) dropped on sparse news.
Exhibit 3: Significant Detractors from Performance, 11/20/20 - 11/27/20
| Name | Type | Return |
| Genworth Financial. | Equity | -10.4% |
| Rocket Companies, Inc. | Equity | -3.4% |
| Flexion Therapeutics | Equity | -4.8% |
| Canada Goose Holdings | Equity | -2.1% |
| Bausch Health Companies Inc. | Equity | -0.8% |
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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