Last week, the Opportunity Equity strategy lost -5.61%, underperforming the S&P 500’s -5.10% loss (Exhibit 1). The strategy ended the week down -4.48% YTD, or 264 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 2/9/181
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (2/2 -2/9) | -5.61% | -5.10% |
| MTD | -8.20% | -7.15% |
| QTD | -4.48% | -1.84% |
| YTD | -4.48% | -1.84% |
| Inception (annualized since 6/26/00) | 6.84% | 5.43% |
Source: Bloomberg, Miller Value Partners
Ziopharm Oncology Inc. (ZIOP) rose during the week after responding to unfounded rumors regarding possible financing plans of the company. Management reconfirmed that its current resources will be sufficient to fund its currently planned operations into the fourth quarter of 2018 and stated that there is no present plan for an equity offering. The company also presented preclinical data at the Keystone Symposia Emerging Cellular Therapies showing T cells expressing CD19-specific CAR with membrane-bound IL-15 that were generated with the non-viral Sleeping Beauty system in less than two days and did not require ex vivo activation or propagation. These T cells showed greater persistence and more potent antitumor activity than comparator T cells without mbIL15 in these studies. There was minimal news on the other top contributors (FLXN, GTYHU, W).
Exhibit 2: Significant Contributors to Performance, 2/2/18 - 2/9/18
| Name | Type | Return |
| Ziopharm Oncology Inc. | Equity | 5.1% |
| Flexion Therapeutic | Equity | 1.5% |
| Cash | Cash | 0.0% |
| GTY Technology Holdings Inc. | Equity | -0.1% |
| Wayfair Inc. | Equity | -0.1% |
Source: Miller Value Partners
Amazon.com Inc. (AMZN) was down over the week. The company announced its free two-hour Prime Now delivery service for select Whole Foods stores. This was followed later in the week by an announcement that Amazon will launch a delivery service for businesses. Delta Air Lines Inc. (DAL) and American Airlines Group Inc. (AAL) fell below the 100-day and 200-day moving average. Delta reported January operating performance with total system revenue per mile (RPM) flat YoY, total system available seat miles (ASM) up 1.8% YoY, and January load factor of 79.7% compared to 81.2% last year. RH (RH) fell below the 100-day moving average. There was minimal news on Quotient Technology Inc. (QUOT).
Exhibit 3: Significant Detractors from Performance, 2/2/18 - 2/9/18
| Name | Type | Return |
| Amazon.com Inc. | Equity | -6.3% |
| Delta Air Lines Inc. | Equity | -7.6% |
| American Airlines Group Inc. | Equity | -7.0% |
| RH | Equity | -5.8% |
| Quotient Technology Inc. | Equity | -8.7% |
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
Share