Last week, the Opportunity Equity strategy gained 2.49%, outperforming the S&P 500’s 1.29% gain (Exhibit 1). The strategy ended the week up 39.64% YTD, 2,276 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/18/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (12/11 - 12/18) | 2.49% | 1.29% |
| MTD | 10.42% | 2.51% |
| QTD | 36.56% | 10.71% |
| YTD | 39.64% | 16.88% |
| Inception (annualized since 6/26/00) | 8.87% | 6.74% |
Source: Bloomberg, Miller Value Partners
Stitch Fix, Inc. (SFIX) continued to climb for the second consecutive week. Keybanc raised their price target to $65 from $56, downside of 7% while Goldman cut the stock to Neutral with a price target of $58, 17% downside. The RealReal (REAL) was initiated with a price target of $19 (downside of 1.6%) based on the company’s long-term secular tailwinds. Vroom, Inc. (VRM) crossed above the 50-day moving average as Truist Securities began covering the name with a buy rating and price target of $58 (upside of 41.3%). Later in the week, the company announced the purchase of CarStory for $120mm in a deal split between cash and stock. CarStory does AI powered analytics and digital services. Precigen, Inc. (PGEN) announced that their first clinical data for their PRGN-3005 ULTRACAR-T ovarian cancer treatment and PRGN-3006 treatment showed encouraging preliminary results. H.C. Wainwright increased their price target from $8 to $10 (upside of 3.8%) on the positive data. Farfetch Ltd. (FTCH) placed Alibaba President Michael Evans on the board of directors, as the strong year for the company continued.
Exhibit 2: Significant Contributors to Performance, 12/11/20 - 12/18/20
| Name | Type | Return |
| Stitch Fix, Inc. | Equity | 16.6% |
| The RealReal, Inc. | Equity | 22.8% |
| Vroom, Inc. | Equity | 18.2% |
| Precigen, Inc. | Equity | 16.4% |
| Farfetch Ltd. | Equity | 4.8% |
Source: Miller Value Partners
Mexico’s antitrust regulators approved Uber Technologies (UBER) acquisition of Cornershop, paving the way for the purchase of the Latin American grocery delivery company to go through. Truist raised their price target to $60 from $53 (upside of 18.5%) due to Uber’s shorter path to profitability. JP Morgan also increased their target to $63 from $46 (upside of 24.5%). WW International (WW) fell during the week despite being rated a new outperform at Wolfe Research with a price target of $36 (upside of 34.3%). Desktop Metal Inc. (DM) was initiated at Craig-Hallum with a price target of $17 (upside of 5.7%). DXC Technology Company (DXC) price target was raised at JPMorgan to $26 from $22, upside of 12.6% meanwhile Wells Fargo Securities resumed coverage of the name with an equal weight rating and a price target of $25 (upside of 8.2%). Boeing Co (BA) was cut to sell at Redburn with a price target of $180 (downside of 18.1%) after the recent rally. News also broke that Canada expects to issue an airworthiness to the 737 MAX in January.JP Morgan increased their price target to $265 from $190 (upside of 20.6%).
Exhibit 3: Significant Detractors from Performance, 12/11/20 - 12/18/20
| Name | Type | Return |
| Uber C32 1/22 | Derivative | -9.8% |
| WW International Inc. | Equity | -7.7% |
| Desktop Metal Inc. | Equity | -3.9% |
| DXC Technology Company | Equity | -3.5% |
| Boeing Co | Equity | -4.5% |
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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