Last week, the Opportunity Equity strategy lost 7.09%, underperforming the S&P 500’s -5.93% loss (Exhibit 1). The strategy ended the week down -4.44% YTD, or 168 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 3/23/181
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (3/16 -3/23) | -7.09% | -5.93% |
| MTD | -4.18% | -4.50% |
| QTD | -4.44% | -2.76% |
| YTD | -4.44% | -2.76% |
| Inception (annualized since 6/26/00) | 6.80% | 5.34% |
Source: Bloomberg, Miller Value Partners
Stitch Fix Inc. (SFIX) crossed above the 50-day moving average rebounding from the decline it saw the previous week after it announced 2Q results which beat but disappointed on 3Q guidance. Buckingham Research Group initiated coverage of Stitch Fix with a neutral rating and a price target of $22. Pandora Media Inc. (P) announced an agreement to acquire AdsWizz, a digital audio advertising technology company, for $145M. There was minimal news on GTY Technology Holdings Inc. (GTYHU) and Foot Locker Inc. (FL).
Exhibit 2: Significant Contributors to Performance, 3/16/18 - 3/23/18
| Name | Type | Return |
| Stitch Fix Inc. | Equity | 8.9% |
| Cash | Cash | 0.0% |
| GTY Technology Holdings Inc. | Equity | -0.3% |
| Pandora Media Inc. | Equity | -0.9% |
| Foot Locker Inc. | Equity | -0.8% |
Source: Miller Value Partners
Banks declined over the week after the Federal Reserve announced a raise in the benchmark interest rate of 0.25% to a target range of 1.5% to 1.75%. JPMorgan Chase & Co. (JPM/WS) warrants and Bank of America (BAC) fell below the 50 and 100-day moving average. Endo Pharmaceuticals Holdings Inc. (ENDP) was down over the week after President Trump stated that the federal government may bring opioid-related litigation against drug companies in addition to the state lawsuits already filed. The FDA released draft compounding guidance that reduces the threat of compounders from entering Vasostrict’s market. Wayfair (W) fell below the 100 and 200-day moving average. Amazon.com Inc. (AMZN) was down over the week in sympathy with Facebook.
Exhibit 3: Significant Detractors from Performance, 3/16/18 - 3/23/18
| Name | Type | Return |
| JPMorgan Chase & Co. – Warrants | Derivative | -11.6% |
| Endo Pharmaceuticals Holdings Inc. | Equity | -16.4% |
| Bank of America Corp. | Equity | -9.3% |
| Wayfair Inc. | Equity | -14.4% |
| Amazon.com Inc. | Equity | -4.9% |
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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