Last week, the Opportunity Equity strategy gained 7.72%, outperforming the S&P 500’s 4.37% rise (Exhibit 1). The strategy ended the week up 2.89% YTD, or 43 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 2/16/181
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (2/9 -2/16) | 7.72% | 4.37% |
| MTD | -1.11% | -3.09% |
| QTD | 2.89% | 2.46% |
| YTD | 2.89% | 2.46% |
| Inception (annualized since 6/26/00) | 7.28% | 5.68% |
Source: Bloomberg, Miller Value Partners
Quotient Technology Inc. (QUOT) crossed above the 50-day and 200-day moving average after announcing 4Q earnings with revenues of $93M vs. consensus of $92M and EBITDA inline at $14M. The company guided for FY18 to have revenues of $379M-$394M and EBITDA of $65M-$73M compared to consensus of $386M and $47M, respectively. OneMain Holdings Inc. (OMF) rose over the week after announcing fourth quarter results with EPS of $1.06 in-line with consensus and net interest income of $653M above consensus of $598M. Loan receivables increased 10% YoY to $14.8B with origination volume up 34% YoY. The company provided 2018 guidance with net receivables growth of 5-10%, net charge off (NCO) rate below 7% and operating expense growth of 5%. Century Link Inc. (CTL) crossed above the 50-day and 100-day moving average after releasing fourth quarter results. Pro Forma revenue was $6.05B compared to consensus of $5.91B and adjusted EBITDA was $2.21B compared to consensus of $2.16B. FCF came in at $434M ahead of consensus of $336M. The company provided 2018 guidance with adjusted FCF of $3.15B to $3.35B exceeding expectations by close to $800M with adjusted EBITDA of $8.75B-$8.95B. Apple Inc. (AAPL) C100 1/19 crossed above the 50-day, 100-day and 200-day moving average. There was minimal news on Amazon.com Inc. (AMZN).
Exhibit 2: Significant Contributors to Performance, 2/9/18 - 2/16/18
| Name | Type | Return |
| Quotient Technology Inc. | Equity | 25.7% |
| Amazon.com Inc. | Equity | 8.1% |
| OneMain Holdings Inc. | Equity | 10.0% |
| Century Link Inc. | Equity | 18.5% |
| Apple C100 1/19 | Derivative | 25.9% |
Source: Miller Value Partners
There was minimal news on the top detractors (ZIOP, GTYHU, AGN, GME).
Exhibit 3: Significant Detractors from Performance, 2/9/18 - 2/16/18
| Name | Type | Return |
| Ziopharm Oncology Inc. | Equity | -1.5% |
| GTY Technology Holdings Inc. | Equity | -0.6% |
| Cash | Cash | 0.0% |
| Allergan PLC | Equity | 0.8% |
| Gamestop Corp. | Equity | 1.4% |
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.
©2018 Miller Value Partners, LLC
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