Last week, the Opportunity Equity strategy lost -3.98%, underperforming the S&P 500’s -1.25% decline. (Exhibit 1). The strategy ended the week down -6.25% YTD, 3,098 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/17/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (12/10 - 12/17) | -3.98% | -1.91% |
| MTD | -5.49% | 1.25% |
| QTD | -10.23% | 7.60% |
| YTD | -6.25% | 24.73% |
| Inception (annualized since 6/26/00) | 8.09% | 7.58% |
Source: Bloomberg, Miller Value Partners
Citi maintained their buy rating on Herbalife Nutrition Ltd. (HLF) while lowering their price target to $46 from $52, upside of 18%. Uber Technologies Inc (UBER) rose after CEO, Dara Khosrowshahi, made encouraging comments at a fireside chat with UBS. The CEO highlighted that last week was Uber’s best week ever in terms of overall gross bookings. MKM Partners named Uber as their top pick in their Macro Outlook for 2022. There was limited news on Bausch Health Companies Inc. (BHC) and WW International Inc (WW).
Exhibit 2: Significant Contributors to Performance, 12/10/21 - 12/17/21
| Name | Type | Return |
| Herbalife Nutrition Ltd. | Equity | 6.9% |
| Uber Technologies Inc | Equity | 7.7% |
| *New Security* | Derivative | 18.6% |
| Bausch Health Companies Inc | Equity | 1.9% |
| WW International Inc | Equity | 1.9% |
Source: Miller Value Partners
General Motors Co (GM) fell through its 50, 100, and 200-day moving averages after Dan Ammann, CEO of Cruise, the company’s autonomous driving division, announced his departure. Diamondback Energy Inc (FANG) fell through its 50-day moving average on fears over the Omicron variant. Taylor Morrison Home Corp (THMC) fell despite renewing its $250M share repurchase program. Barclays maintained its overweight weighting on the name but increased its price target from $42 to $45 (45% upside). There was limited news on JD Inc (JD), and Green Thumb Industries Inc. (GTBIF).
Exhibit 3: Significant Detractors from Performance, 12/10/21 - 12/17/21
| Name | Type | Return |
| JD 1/24 C75 | Derivative | -22.6% |
| General Motors Co | Equity | -12.7% |
| Green Thumb Industries Inc. | Equity | -11.8% |
| Diamondback Energy Inc | Equity | -7.9% |
| Taylor Morrison Home Corp | Equity | -7.8% |
-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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