Last week, the Opportunity Equity strategy fell -4.69%, underperforming the S&P 500’s -1.87% decline (Exhibit 1). The strategy ended the week up 19.05% YTD, 734 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 6/18/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (6/11 - 6/18) | -4.69% | -1.87% |
| MTD | -0.86% | -0.81% |
| QTD | 2.04% | 5.21% |
| YTD | 19.05% | 11.71% |
| Inception (annualized since 6/26/00) | 9.53% | 7.21% |
Source: Bloomberg, Miller Value Partners
JP Morgan published a report on Amazon.com Inc. (AMZN) highlighting the company’s 39% market share in US e-commerce and predicting that Amazon will surpass Walmart as the largest US retailer in 2022. E-Commerce penetration jumped to nearly 19% of total commerce last year. JP Morgan reiterated their overweight rating and $4,600 price target (upside of 31.9%). The company also announced that their Covid-19 test will be available to consumers online. Cowen published a deep dive on Farfetch Ltd (FTCH) arguing that the stock still remains undervalued, as the company has a strong set of competitive advantages and building blocks to be highly profitable in the future. The report reiterated Cowen’s overweight rating and $70 price target (upside of 37%).
Exhibit 2: Significant Contributors to Performance, 6/11/21 - 6/18/21
| Name | Type | Return |
| *New Security* | Equity | 6.7% |
| AMZN C3050 1/23 | Derivative | 16.9% |
| Amazon.com Inc | Equity | 4.2% |
| Farfetch Ltd | Equity | 3.6% |
| *New Security* | Equity | 2.9% |
Source: Miller Value Partners
DXC Technology Company (DXC) held an investor day last week where the company reiterated their targets of 1-3% growth by FY24, with a 10-11% EBIT Margin, non-GAAP EPS of $5.00-$5.25 and $1.5bn of free cash flow. The company maintained their confidence that they can hit all of their targets while also stressing the progress they have made on their turnaround to date. JP Morgan raised their price target from $35 to $38 (upside of 4.8%). Teva Pharmaceuticals (TEVA) fell through the 50-day, 100 day, and 200-day moving averages as trepidation about opioid lawsuits continues. The company announced the US launch of their generic version of Soolantra, which treats inflammatory lesions of rosacea. Precigen Inc. (PGEN) dropped through the 50-day and 200-day moving average. WW International Inc. (WW) and ADT Inc. (ADT) fell on limited news.
Exhibit 3: Significant Detractors from Performance, 6/11/21 - 6/18/21
| Name | Type | Return |
| DXC Technology Company | Equity | -12.4% |
| Teva Pharmaceutical-SP ADR | Equity | -8.9% |
| WW International Inc | Equity | -8.8% |
| ADT Inc | Equity | -6.0% |
| Precigen Inc. | Equity | -13.4% |
-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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