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Jan 03, 2022

Opportunity Equity Update for Week Ended 12/31/21

Christina Siegel Malbon

Green Thumb Rises on New Market Entry while NCLH Falls on CDC Recommendation

Last week, the Opportunity Equity strategy strategy lost 0.45%, underperforming the S&P 500’s 0.87% gain. (Exhibit 1). The strategy ended the week down -3.01% YTD, 3,172 basis points behind the S&P 500.

Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/31/211

Time Period Opportunity Equity S&P 500
Last Week (12/24 - 12/31) -0.45% 0.87%
MTD -2.23% 4.48%
QTD -7.13% 11.03%
YTD -3.01% 28.71%
Inception (annualized since 6/26/00) 8.25% 7.73%

Source: Bloomberg, Miller Value Partners

Green Thumb Industries (GTBIF) broke through its 50-day moving average last week after announcing it had entered the Minnesota medical cannabis market by acquiring LeafLine Industries, one of only two licensed operators in Minnesota, for an undisclosed sum. Zacks Investment Research raised Taylor Morrison Home Corp (TMHC) to “BUY” from “HOLD” with a $38 Price Target (12% upside). There was limited news on General Motors Co (GM).

Exhibit 2: Significant Contributors to Performance, 12/24/21 - 12/31/21

Name Type Return
Green Thumb Industries Inc. Equity 8.3%
Taylor Morrison Home Corp Equity 4.1%
*New Security* Equity 4.2%
*New Security* Equity 3.9%
General Motors Co Equity 3.0%

Source: Miller Value Partners

Norwegian Cruise Line Holdings Ltd. (NCLH) fell after the CDC recommended avoiding cruise travel, regardless of vaccination status. Teva Pharmaceutical (TEVA) fell after a New York jury found that the company had helped to fuel the opioid addiction epidemic in the state. Inc (AMZN) fell through its 100 and 200-day moving average after the company settled a dispute with the National Labor Relations Board (NLRB) over warehouse workers rights, making unionization more likely.

Exhibit 3: Significant Detractors from Performance, 12/24/21 - 12/31/21

Name Type Return
Norwegian Cruise Line Holdings Ltd. Equity -8.7%
Teva Pharmaceutical-SP ADR Equity -5.3%
AMZN C3050 1/23 Derivative -10.1%
*New Security* Equity -5.9% Inc Equity -2.5%

-Source: Miller Value Partners

Check out the Income Strategy weekly Update. Click to Read.

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.

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