Last week, the Opportunity Equity strategy gained 1.30%, outperforming the S&P 500’s -0.15% loss (Exhibit 1). The strategy ended the week up 41.45% YTD, 2,474 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/24/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (12/18 - 12/24) | 1.30% | -0.15% |
| MTD | 11.86% | 2.36% |
| QTD | 38.33% | 10.54% |
| YTD | 41.45% | 16.71% |
| Inception (annualized since 6/26/00) | 8.93% | 6.73% |
Source: Bloomberg, Miller Value Partners
Desktop Metal Inc. (DM) announced the appointment of Scott Dussault and election of Stephen Nigro to the Board of Directors. Stephen Nigro was director of 3D printing at HP, Inc, and Scott Dussault was the CFO at the Nasuni Corporation most recently. Uber Technologies (UBER) benefited from a report that rides were up 11% in October in New York City. Bernstein updated their price target on the stock to $60 (upside of 13%) and reiterated their outperform rating on the stock. The stock also saw some insider selling, with Chief legal officer Tony West selling $1.26mm in stock. Capital One Financial Corp (COF) got a boost as all the major banks and card lenders passed the Federal Reserve’s stress test and are now allowed limited repurchase plans in 1Q21. Flexion Therapeutics (FLXN) rose through the 50-day and 100-day moving average. Vroom, Inc. (VRM) rose on limited news.
Exhibit 2: Significant Contributors to Performance, 12/18/20 - 12/24/20
| Name | Type | Return |
| Desktop Metal Inc. | Equity | 19.3% |
| Uber C32 1/22 | Derivative | 14.4% |
| Capital One Financial Corp. | Equity | 6.3% |
| Vroom, Inc. | Equity | 4.5% |
| Flexion Therapeutics | Equity | 8.0% |
Source: Miller Value Partners
Alibaba (BABA) fell sharply through the 200-day moving average as the Chinese government opened an investigation into alleged monopolistic practices by the company. The move comes as Chinese regulators increasingly are looking to crack down on anticompetitive behavior within the space. The company has pledged to cooperate with the probe, but the outcome is unclear as to what changes the company will need to make. ADT Inc. (ADT) fell on limited news. Facebook Inc. (FB) fell below the 50-day and 100-day moving average while CVS Health Corp (CVS) dropped as the company completed a $4.5bn dollar tender offer for outstanding debt. The company also began rolling out the vaccine to long-term care facilities. Energy Transfer (ET) dropped through the 200-day moving average on limited news.
Exhibit 3: Significant Detractors from Performance, 12/18/20 - 12/24/20
| Name | Type | Return |
| Alibaba Group Holding Ltd. ADS | Equity | -14.6% |
| ADT Inc. | Equity | -3.9% |
| Facebook Inc. | Equity | -3.3% |
| CVS C60 1/23 | Derivative | -12.8% |
| Energy Transfer LP | Equity | -5.0% |
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.
©2020 Miller Value Partners, LLC
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