Last week, the Opportunity Equity strategy fell by 2.52%, outperforming the S&P 500’s 3.00% loss. (Exhibit 1). The strategy ended the week down -26.32% YTD, 865 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 5/20/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (5/13 - 5/20) | -2.52% | -3.00% |
| MTD | -11.20% | -5.45% |
| QTD | -20.78% | -13.70% |
| YTD | -26.32% | -17.67% |
| Inception (annualized since 6/26/00) | 6.60% | 6.64% |
Source: Bloomberg, Miller Value Partners
Bank of America upgraded Teva Pharmaceutical (TEVA) to a neutral rating from an underperform rating with a $9 price target (6% upside). The company announced new findings highlighting potential of ProAir Digihaler Inhalation Powder to address asthma. The United Kingdom was the first to grant Teva a license for Ongavia, a biosimilar to Lucentis, for age-related macular degeneration. Ovintiv Inc (OVV) rose in sympathy with higher crude oil prices. Citigroup Inc (C) rose after Berkshire Hathaway announced a $2.9B investment in the company during Q1 (2.85% of shares outstanding). SoFi Technologies, Inc. (SOFI) rose after Piper Sandler upgraded the company to overweight from neutral and a $10 price target (34% upside). CEO, Anthony Noto, continued buying the stock increasing his position by $555k on top of the $1.2B he purchased in March. There was limited news on Vontier Corp. (VNT).
Exhibit 2: Significant Contributors to Performance, 5/13/22 - 5/20/22
| Name | Type | Return |
| Teva Pharmaceutical | Equity | 9.2% |
| Ovintiv Inc | Equity | 4.5% |
| Vontier Corp. | Equity | 5.0% |
| Citigroup Inc | Equity | 4.4% |
| SoFi Technologies, Inc. | Equity | 11.0% |
Source: Miller Value Partners
Mattel Inc (MAT) fell below its 50 and 100-day moving averages. Truist cut its price target on Norwegian Cruise Line Holdings Inc (NCLH) from $20 to $18 (18% upside) as a result of weaker pricing based on proprietary observations while Goldman lowered estimates and price target on delayed recovery bring their price target down to $25, upside of 69%. General Motors Inc (GM) fell after Morgan Stanley lowered its price target on the company from $50 to $44 (24% upside). There was limited news on Alphabet Inc (GOOGL) and WW International Inc (WW).
Exhibit 3: Significant Detractors from Performance, 5/13/22 - 5/20/22
| Name | Type | Return |
| Mattel Inc | Equity | -12.3% |
| Alphabet Inc | Equity | -6.2% |
| WW International Inc | Equity | -19.2% |
| Norwegian Cruise Line Holdings Inc | Equity | -5.7% |
| General Motors Inc | Equity | -7.4% |
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 based on the representative account 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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