Last week, the Opportunity Equity strategy fell -0.56%, outperforming the S&P 500’s -0.68% decline (Exhibit 1). The strategy ended the week up 21.27% YTD, 1,704 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 2/19/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (2/12 - 2/19) | -0.56% | -0.68% |
| MTD | 12.28% | 5.29% |
| QTD | 21.27% | 4.23% |
| YTD | 21.27% | 4.23% |
| Inception (annualized since 6/26/00) | 9.79% | 6.96% |
Source: Bloomberg, Miller Value Partners
Norwegian Cruise Lines (NCLH) extended its suspension for all cruises through May 31st. While disappointing, the company has enough cash to get through 10 months of no sailing and the stock rose through the 50-day moving average. Discovery Inc. (DISCA) rose as Morgan Stanley raised their price target from $28 to $40 (downside of 21.2%) and cut the stock to equal weight. The company also redeemed $335mm of notes due in 2021. ADT Inc. (ADT) rose on the back of a partnership with Hippo Partners to give their home insurance customers discounted smart home services and protection for their clients. The move continues ADT push to partner and find new avenues to increase their customer base. Farfetch Ltd. (FTCH) rose on limited news.
Exhibit 2: Significant Contributors to Performance, 2/12/21 - 2/19/21
| Name | Type | Return |
| Norwegian Cruise Line Holdings Ltd. | Equity | 13.8% |
| Farfetch Ltd | Equity | 5.5% |
| *New Security* | Equity | 12.0% |
| Discovery Inc. | Equity | 6.3% |
| ADT Inc | Equity | 3.8% |
Source: Miller Value Partners
Desktop Metal Inc. (DM) closed their previously announced acquisition of EnvisionTEC. The $300mm deal is intended to increase the reach of the company bringing Desktop Metals into the photopolymer 3D printing space. Uber Technologies (UBER) fell after they lost a court case in the United Kingdom over drivers’ rights, ruling that drivers are in fact workers and not contractors. There was limited news on Stitch Fix, Inc. (SFIX) and Diamondback Energy Inc. (FANG).
Exhibit 3: Significant Detractors from Performance, 2/12/21 - 2/19/21
| Name | Type | Return |
| Desktop Metal Inc. | Equity | -14.5% |
| Stitch Fix, Inc. | Equity | -6.4% |
| *New Security* | Equity | -8.1% |
| Diamondback Energy Inc | Equity | -5.1% |
| UBER C32 1/22 | Derivative | -6.1% |
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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