Last week, the Opportunity Equity strategy gained 3.95%, underperforming the S&P 500’s 4.07% rise (Exhibit 1). The strategy ended the week down -8.89% YTD, or 676 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 7/2/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (6/26 - 7/2) | 3.95% | 4.07% |
| MTD | 1.09% | 0.98% |
| QTD | 1.09% | 0.98% |
| YTD | -8.89% | -2.13% |
| Inception (annualized since 6/26/00) | 6.78% | 5.96% |
Source: Bloomberg, Miller Value Partners
Farfetch Ltd (FTCH) had its price target raised at both Goldman and Deutsche Bank following the release of their 2Q preliminary results. Goldman raised their price target to $21 up from $18.20, upside of 11% while Deutsche Bank increased their price target to $23, upside of 21%. SunTrust raised their price target on Amazon.com Inc. (AMZN) to $3,400, upside of x%. The company announced the acquisition of Zoox, a developer of autonomous vehicle technology, for $1.2B. The company also announced that it was establishing a new space unit called Aerospace and Satellite Solutions. There was minimal news on Stitch Fix Inc. (SFIX) and Medifast Inc. (MED).
Exhibit 2: Significant Contributors to Performance, 6/26/20 - 7/2/20
| Name | Type | Return |
| *Recently Added Security* | Equity | 139.3% |
| Stitch Fix Inc. | Equity | 24.1% |
| Farfetch Ltd | Equity | 8.4% |
| Medifast Inc. | Equity | 14.5% |
| Amazon.com Inc. | Equity | 7.3% |
Source: Miller Value Partners
Teva Pharmaceuticals (TEVA) crossed below the 50-day moving average after the Justice Department filed criminal charges against Glenmark for price fixing in the Pravastatin market in 2013. The lawsuit argues that Glenmark colluded with another company which people believe to be Teva. Genworth Financial Inc. (GNW) fell after the company announced another extension of its pact with China Oceanwide to be acquired. The new agreement extends the merger deadline to September 30th. There was minimal news on Ziopharm Oncology Inc. (ZIOP) and Precigen Inc. (PGEN).
Exhibit 3: Significant Detractors from Performance, 6/26/20 - 7/2/20
| Name | Type | Return |
| Teva Pharmaceuticals | Equity | -6.9% |
| Genworth Financial Inc. | Equity | -8.5% |
| Ziopharm Oncology Inc. | Equity | -5.0% |
| Precigen Inc. | Equity | -2.8% |
| Ziopharm Oncology Inc. - Warrants | Equity | -8.2% |
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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