Last week, the Opportunity Equity strategy fell -5.05%, underperforming the S&P 500’s -1.24% loss. (Exhibit 1). The strategy ended the week down -13.02% YTD, 408 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 3/4/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (2/25 - 3/4) | -5.05% | -1.24% |
| MTD | -4.90% | -1.01% |
| QTD | -13.02% | -8.94% |
| YTD | -13.02% | -8.94% |
| Inception (annualized since 6/26/00) | 7.48% | 7.20% |
Source: Bloomberg, Miller Value Partners
Ovintiv Inc (OVV) rose in sympathy with the dramatic rise in crude prices following the escalation of the war in Ukraine. Following their earnings from the week prior, the company received a number of upgrades and price target increases. Truist raised their price target to $58 (upside of 19%) while JPMorgan increased their price target to $54 (11% upside) and RBC upgraded the name to an Outperform rating and a price target of $50 (3% upside). Tupperware Brands Corp (TUP) rose above the 100-day moving average after announcing a $75M Accelerated Share Repurchase (ASR) that will reduce shares outstanding by 8.7%. Taylor Morrison Home Corp (TMHC) rose above the 50 and 100-day moving average. BTIG raised their price target to $40 (upside of 24%) following a management visit. There was limited news on Tivity Health (TVTY).
Exhibit 2: Significant Contributors to Performance, 2/25/22 - 3/4/22
| Name | Type | Return |
| Ovintiv Inc | Equity | 17.5% |
| Tivity Health | Equity | 11.4% |
| *New Security* | Equity | 20.5% |
| Tupperware Brands Corp | Equity | 18.5% |
| Taylor Morrison Home Corp | Equity | 8.9% |
Source: Miller Value Partners
Farfetch Ltd (FTCH) declined over the week following a strong +15% on the Friday before after reporting strong earnings. Oppenheimer lowered their price target on the company to $32 (upside of 117%) while Societe Generale raised the company to a Hold rating while lowering their price target to $23 (56% upside). DXC Technology Company (DXC) fell through its 50 and 100-day moving average following the increased escalation of the war in Ukraine. The company announced it would exit existing business and no longer pursue new business in the Russian Federation, though it will continue to support its 4,000 colleagues in the country (2.9% of total colleagues). Delta Air Lines Inc (DAL) and Norwegian Cruise Line Holdings (NCLH) were hit following the continued climb of energy prices to levels not seen since 2008. Delta fell through the 50, 100, and 200-day moving averages. Macquarie lowered their price target on Norwegian to $23 (32% upside). JD.com Inc (JD) fell below the 50-day moving average on limited news.
Exhibit 3: Significant Detractors from Performance, 2/25/22 - 3/4/22
| Name | Type | Return |
| Farfetch Ltd | Equity | -29.5% |
| DXC Technology Company | Equity | -15.6% |
| Delta Air Lines Inc | Equity | -16.9% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -11.5% |
| JD 1/24 C75 | Derivative | -25.0% |
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. Portfolio composition is shown as of a point in time and is subject to change without notice.
©2022 Miller Value Partners, LLC
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