Last week, the Opportunity Equity strategy gained 0.90%, outperforming the S&P 500’s 0.08% gain. (Exhibit 1). The strategy ended the week down -6.39% YTD, 212 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 4/1/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (3/25 - 4/1) | 0.90% | 0.08% |
| MTD | 0.64% | 0.34% |
| QTD | 0.64% | 0.34% |
| YTD | -6.39% | -4.27% |
| Inception (annualized since 6/26/00) | 7.82% | 7.42% |
Source: Bloomberg, Miller Value Partners
Norwegian Cruise Line Holding Ltd (NCLH) rose above the 50 and 100-day moving average as Wells Fargo initiated on the name with an overweight rating and a price target of $27, upside of 24%. Teva Pharmaceuticals (TEVA) continued to rise over the week as they agreed to settle the Florida Opioid suit for $261M ($177M cash over 15 years and $84M of g-Narcan donations over 10 years) while admitting no wrong doing. Bernstein raised the company to an outperform rating and a price target of $11, upside of 17%. Green Thumb Industries Inc. (GTBIF) rose above the 50-day moving average as the US House voted in favor of a bill that would decriminalize marijuana. Energy Transfer (ET) announced that they signed a 20-year agreement with Chinese buyers ENN natural Gas and ENN Energy Holdings for it to supply 2.7m tons per annum of liquefied natural gas via its Lake Charles Project with deliveries commencing as soon as 2026. There was limited news on Tivity Health Inc. (TVTY).
Exhibit 2: Significant Contributors to Performance, 3/25/22 - 4/1/22
| Name | Type | Return |
| Norwegian Cruise Line Holdings Ltd. | Equity | 9.9% |
| Tivity Health Inc. | Equity | 9.8% |
| Teva Pharmaceuticals | Equity | 8.9% |
| Green Thumb Industries Inc. | Equity | 8.8% |
| Energy Transfer | Equity | 9.0% |
Source: Miller Value Partners
Our TLT Puts (TLT P143 1/19/24) fell over the week as rates pulled back slightly. Barclays cut Taylor Morrison Home Corp. (TMHC) to equal weight with a price target of $33 (upside of 21%) down from $44. DXC Technology Company (DXC) fell below its 50 and 100-day moving average on limited news. Diamondback Energy Inc. (FANG) followed commodities prices lower over the week. Our JD Call options (JD C75 1/19/24) were down on limited news.
Exhibit 3: Significant Detractors from Performance, 3/25/22 - 4/1/22
| Name | Type | Return |
| DXC Technology Company | Equity | -6.5% |
| JD C75 1/19/24 | Derivative | -19.9% |
| Diamondback Energy Inc. | Equity | -5.6% |
| TLT P143 1/19/24 | Derivative | -8.4% |
| Taylor Morrison Home Corp. | Equity | -5.1% |
Source: Miller Value Partners
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1 The performance figures reflect the deduction of a model investment management fee of 1% (the highest fee for separate accounts under our fee schedule) and certain other expenses. For important information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy 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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