Last week, the Opportunity Equity strategy gained 3.08%, outperforming the S&P 500’s -1.72% gain (Exhibit 1). The strategy ended the week up 32.81% YTD, 1,631 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/4/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (11/27 - 12/4) | 3.08% | 1.72% |
| MTD | 5.02% | 2.18% |
| QTD | 29.88% | 10.35% |
| YTD | 32.81% | 16.50% |
| Inception (annualized since 6/26/00) | 8.62% | 6.74% |
Source: Bloomberg, Miller Value Partners
Uber Technologies. (UBER) moved higher as Loop Capital raised their price target from $40 to $59 (upside of 7.5%), Citi raised their price target to $60 from $40 (Upside of 9.4%), and Wells Fargo increased their price target from $50 to $60 (upside of 9.4%). The company benefitted from news that the company was in advanced talks to sell their air taxi business, Uber Elevate, to Joby Aviation. The company also closed their purchase of Postmates which was announced earlier in the year. Farfetch Ltd. (FTCH) benefitted from a McKinsey & Co. 2021 State of Fashion report which discussed the idea that the upcoming year could see a definitive shift toward online retailing. DXC Technology Company (DXC) announced a collaboration with Microsoft on a platform called MyWorkStyle. The goal of the platform is to provide a suite of services that can give employees a modern workplace experience while allowing them to work on any device. CVS Health Corp. (CVS) rose on news that it will take part in a federal government program to administer Eli Lilly’s antibody treatment for Covid-19 to patients in their homes. CVS also noted at a conference that they will have COVID testing in 5,000 locations and some 30,000 long-term care facilities have selected CVS to administer the new COVID vaccine. Precigen (PGEN) rose on limited news.
Exhibit 2: Significant Contributors to Performance, 11/27/20 - 12/4/20
| Name | Type | Return |
| Uber C32 1/22 | Derivative | 16.7% |
| Farfetch Ltd. | Equity | 6.6% |
| DXC Technology Company | Equity | 7.2% |
| Precigen Inc. | Equity | 13.1% |
| CVS C60 1/23 | Derivative | 35.5% |
Source: Miller Value Partners
Stitch Fix (SFIX) fell during the week on a spate of analyst rating and price target changes. Needham raised their price target to $46 per share from $34 (upside of 29.4%), while Wells downgraded the company to underweight while raising the price target to $27 from $18 (downside of 24.1%), and MKM downgraded the stock to a sell with a $28 price target from $25 (downside of 22.3%). Continued insider selling also hurt the company. Jefferies initiated on Vroom, Inc. (VRM) with a hold rating and a price target of $38 (upside of 14.7%). Alibaba Group Holding Ltd. (BABA) dropped below the 100-day moving average after the US House of Representatives passed a bill that threatens to delist Chinese companies from US exchanges unless US regulators are able to inspect their financial audits within three years. Canada Goose Holdings (GOOS) crossed below the 50-day moving average while Rocket Companies Inc. (RKT) fell on limited news.
Exhibit 3: Significant Detractors from Performance, 11/27/20 - 12/4/20
| Name | Type | Return |
| Stitch Fix, Inc. | Equity | -14.3% |
| Vroom, Inc. | Equity | -11.2% |
| Canada Goose Holdings | Equity | -5.8% |
| Alibaba Group Holding Ltd. ADS | Equity | -3.3% |
| Rocket Companies, Inc. | Equity | -3.1% |
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
Share