Last week, the Opportunity Equity strategy lost -1.37%, underperforming the S&P 500’s -0.33% decline (Exhibit 1). The strategy ended the week up 26.21% YTD, or 438 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 12/29/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (12/22 - 12/29) | -1.37% | -0.33% |
| MTD | 1.53% | 1.11% |
| QTD | 5.45% | 6.64% |
| YTD | 26.21% | 21.83% |
| Inception (annualized since 6/26/00) | 7.17% | 5.42% |
Source: Bloomberg, Miller Value Partners
OneMain Holdings Inc. (OMF) crossed above the 200-day moving average. Alexion Pharmaceuticals Inc. (ALXN) announced that Soliris was approved in Japan in refractory generalized myasthenia gravis (gMG). There was minimal news on the other top contributors (P, W, ZIOP).
Exhibit 2: Significant Contributors to Performance, 12/22/17 – 12/29/17
| Name | Type | Return |
| OneMain Holdings Inc. | Equity | 2.4% |
| Pandora Media Inc. | Equity | 2.8% |
| Wayfair Inc. | Equity | 0.6% |
| Ziopharm Oncology Inc. | Equity | 2.2% |
| Alexion Pharmaceuticals | Equity | 0.7% |
Source: Miller Value Partners
Valeant Pharmaceuticals International Inc. (VRX) announced that it received FDA approval for LUMIFY, the first OTC eye drop developed with low-dose brimonidine tartrate for the treatment of ocular redness. The company also announced a preliminary resolution in the Allergan insider-trading case with Valeant paying $93.25M of the $290M. Apple Inc. (AAPL) call options fell over the week after Apple admitted to slowing down older iPhones. MGIC Investment Corp. (MTG) fell below the 50-day moving average. The company announced that they had received a summary of the proposed changes to the Private Mortgage Insurer Eligibility Requirements (PMIERs 2.0). If enacted as is in 4Q18, MTG’s excess of available assets over minimum required assets would be materially lower than what it was in 3Q17 but the company still expects to continue to pay $50M in quarterly dividends to the holding company. There was minimal news on RH (RH) and Genworth Financial Inc. (GNW).
Exhibit 3: Significant Detractors from Performance, 12/22/17 - 12/29/17
| Name | Type | Return |
| RH | Equity | -7.2% |
| Valeant Pharmaceuticals International Inc. | Equity | -3.6% |
| Apple Inc. C100 | Equity | -7.2% |
| MGIC Investment Corp. | Equity | -3.0% |
| Genworth Financial Inc. | Equity | -2.8% |
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.
©2017 Miller Value Partners, LLC
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