Last week, the Opportunity Equity strategy gained 25.00%, outperforming the S&P 500’s 12.15% gain (Exhibit 1). The strategy ended the week down -32.18% YTD, or 1,903 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 4/9/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (4/3 - 4/9) | 25.00% | 12.15% |
| MTD | 11.08% | 8.02% |
| QTD | 11.08% | 8.02% |
| YTD | -32.18% | -13.15% |
| Inception (annualized since 6/26/00) | 5.28% | 5.39% |
Source: Bloomberg, Miller Value Partners
Farfetch Ltd (FTCH) gained over the week as BTIG published a report on the company showing healthy shopping activity in the last week of March and maintain a buy rating with a price target of $15, 50% upside. Lennar Corp. (LEN) traded up after MTH released 1Q20 preliminary results which had orders up 23% YoY for the quarter with March showing a decline of 8%. Lennar maintained their dividend at $0.125 (1.1% yield). Morningstar published a report on Lennar, D.R. Horton and Toll Brothers noting that all names are trading near or below their bear-case fair value estimates. Morningstar holds a PT of $75 for LEN, upside of 67%. JPMorgan lowered their price target on Brighthouse Financial Inc. (BHF) to $37, upside 34%. Citi reinstated coverage of ADT Inc. (ADT) with a neutral rating and a price target of $4.50, downside of -16%. It was announced that the CEO of ADT, Jim Devries tested positive for COVID-19. OneMain Holdings Inc. (OMF) announced measures to support customers struggling with the economic fallout from COVID-19. Piper Sandler cut their price target for OneMain to $34 from $60, 26% upside.
Exhibit 2: Significant Contributors to Performance, 4/3/20 - 4/9/20
| Name | Type | Return |
| Farfetch Ltd | Equity | 42.1% |
| Lennar Corp. | Equity | 34.2% |
| Brighthouse Financial Inc. | Equity | 39.7% |
| ADT Inc. | Equity | 28.3% |
| OneMain Holdings Inc. | Equity | 46.0% |
Source: Miller Value Partners
Peloton Interactive Inc. (PTON) fell below the 100-day moving average after the company announced the pausing of live classes after an employee tested positive for COVID-19. Peloton’s entire library of classes still remains available for customers. There was minimal news on GTY Technology Holdings Inc. (GTYHW).
Exhibit 3: Significant Detractors from Performance, 4/3/20 - 4/9/20
| Name | Type | Return |
| Peloton Interactive Inc. | Equity | -1.1% |
| GTY Technology Inc. – Warrants | Equity | 0.0% |
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. Content may not be reprinted, republished or used in any manner without written consent from Miller Value Partners.
©2019 Miller Value Partners, LLC
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