Last week, the Opportunity Equity strategy gained 2.59%, outperforming the S&P 500’s 1.16% gain (Exhibit 1). The strategy ended the week up 18.45% YTD, 1,102 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 4/1/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (3/26 - 4/1) | 2.59% | 1.16% |
| MTD | 1.53% | 1.18% |
| QTD | 1.53% | 1.18% |
| YTD | 18.45% | 7.43% |
| Inception (annualized since 6/26/00) | 9.61% | 7.08% |
Source: Bloomberg, Miller Value Partners
Acuity Brands (AYI) surged as the company posted stronger than expected earnings. Net sales came in at $777mm right in-line with expectations while the company reported EPS of $2.12 better than $1.73 expected due to better gross margins coming in at 43.4%, which was the highest since 4Q16. The strong results led to a slew of price target changes. Cowen moved their price target from $133 to $181 (upside of 7.2%), Credit Suisse raised their price target to $186 from $152 (upside of 10.1%), and Oppenheimer increased their price target to $190 from $140 (upside of 12.5%). DXC Technology Company (DXC) was upgraded to a buy at Deutsche Bank, with a price target of $44, up from $28 (upside of 42.7%). Uber Technologies (UBER) rose through the 50-day moving average as Jefferies initiated coverage with a buy rating and price target of $75, upside of 30.2%. The UK Competition and Markets Authority approved Uber’s acquisition of Autocab after finding no competition concerns. There was limited news on Diamondback Energy Inc. (FANG) and Quotient Technology (QUOT).
Exhibit 2: Significant Contributors to Performance, 3/26/21 - 4/1/21
| Name | Type | Return |
| Acuity Brands, Inc. | Equity | 16.0% |
| DXC Technology Company | Equity | 8.6% |
| Quotient Technology Inc. | Equity | 9.1% |
| Uber C32 1/22 | Derivative | 13.6% |
| Diamondback Energy Inc. | Equity | 7.2% |
Source: Miller Value Partners
Metromile Inc. (MILE) shares dropped as they reported their full year results. Revenue fell from $52.8mm in 2019 to $35.1mm in 2020, while the full year net loss per share went from $6.85 in 2019 to $13.72 in 2020. The company expects policies in force to be 125k to 133k in 2021.Precigen Inc. (PGEN) fell on the announcement that their CFO is departing the company by mutual agreement with the search for his replacement ongoing. . Rocket Companies, Inc. (RKT)) fell through the 50-day moving average. Green Thumb Industries, Inc. (GTBIF) dropped on a report by the Chicago Tribune that the company is part of a pay to play investigation over obtaining valuable licenses to grow and sell cannabis in various states including Illinois. The company has demanded a retraction and claimed they are completely unaware of any investigation. Lake Street Capital Markets initiated on Desktop Metal (DM) with a selling rating and a price target of $11, downside of -28%.
Exhibit 3: Significant Detractors from Performance, 3/26/21 - 4/1/21
| Name | Type | Return |
| Metromile Inc. | Equity | -14.8% |
| Precigen Inc. | Equity | -6.7% |
| Rocket Companies, Inc. | Equity | -5.7% |
| Green Thumb Industries, Inc. | Equity | -5.8% |
| Desktop Metal Inc. | Equity | -2.1% |
-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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