Last week, the Opportunity Equity strategy lost 7.26%, underperforming the S&P 500’s -1.17% return. (Exhibit 1). The strategy ended the week down -5.05% YTD, 2,750 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/3/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (11/26 - 12/3) | -7.26% | -1.17% |
| MTD | -4.29% | -0.60% |
| QTD | -9.09% | 5.63% |
| YTD | -5.05% | 22.45% |
| Inception (annualized since 6/26/00) | 8.17% | 7.51% |
Source: Bloomberg, Miller Value Partners
Taylor Morrison Home Corp (TMHC) gained after October pending home sales came in well ahead of expectations rising 7.5%, above expectations of 0.8%. Seaport Global initiated coverage on OneMain Holdings Inc (OMF) with a “Neutral” rating noting their very attractive dividend yield. Rocket Companies, Inc (RKT) rose despite its price target being cut from $19 to $15 at Morgan Stanley (~3.3% downside) due to refinancing market contractions. There was limited news on WW International Inc (WW).
Exhibit 2: Significant Contributors to Performance, 11/26/21 - 12/3/21
| Name | Type | Return |
| WW International Inc | Equity | 3.6% |
| Taylor Morrison Home Corp | Equity | 2.2% |
| OneMain Holdings Inc | Equity | 1.5% |
| * New Security* | Equity | 2.8% |
| Rocket Companies, Inc. | Equity | 0.1% |
Source: Miller Value Partners
JD (JD) and Alibaba (BABA) fell in sympathy with broader weakness in Chinese Internet names, driven primarily by Didi Global Inc’s (DIDI) choice to move its primary listing from New York to Hong Kong. Canada Goose Holdings (GOOS) fell through the 50, 100, and 200-day moving average after the company was accused of breaking consumer laws in China regarding merchandise returns. The RealReal, Inc. (REAL) fell below the 50, and 100-day moving average despite posting continued strong growth in November, with Gross Merchandise Value (GMV) rising 51% above 2020 levels and 46% above 2019 levels. There was minimal news Green Thumb Industries Inc. (GTBIF).
Exhibit 3: Significant Detractors from Performance, 11/26/21 - 12/3/21
| Name | Type | Return |
| JD 1/24 C75 | Derivative | -28.0% |
| Canada Goose Holdings | Equity | -20.4% |
| Alibaba Group Holdings Ltd. ADS | Equity | -15.7% |
| The RealReal, Inc. | Equity | -17.7% |
| Green Thumb Industries Inc. | Equity | -11.0% |
-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.
©2021 Miller Value Partners, LLC
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