Last week, the Opportunity Equity strategy gained 8.19%, outperforming the S&P 500’s 3.31% rise. (Exhibit 1). The strategy ended the week down -19.40% YTD, 1,006 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 8/12/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/5 - 8/12) | 8.19% | 3.31% |
| MTD | 10.93% | 3.71% |
| QTD | 22.81% | 13.27% |
| YTD | -19.40% | -9.34% |
| Inception (annualized since 6/26/00) | 6.96% | 7.03% |
Source: Bloomberg, Miller Value Partners
Karuna Therapeutics, Inc. (KRTX) rose after releasing positive phase 3 EMERGENT-2 trial data on its KarXT antipsychotic medication for schizophrenia. Following the positive trial results, Karuna issued an additional ~4M shares for $863M ($215/share) and will use the proceeds to fully fund their commercialization activities and get them through 2025. RBC raised its price target to $292 from $160 (5% upside), while Bank of America raised its price target to $261 from $160 (6% downside). Expedia Group, Inc. (EXPE) rose above the 50-day moving average. Susquehanna cut its price target on the company from $145 to $115 (1% upside) while maintaining its neutral rating. Farfetch Ltd (FTCH) rose above the 100-day moving average after Salvatore Ferragamo announced a deal to use Farfetch’s platform solutions and explore its “Future Retail” (in-store) technology. Ovintiv Inc (OVV) rose above the 50 and 100-day moving averages following energy prices marginally higher. OneMain Holdings, Inc. (OMF) rose above the 50-day moving average on limited news.
Exhibit 2: Significant Contributors to Performance, 8/5/22 - 8/12/22
| Name | Type | Return |
| Karuna Therapeutics, Inc. | Equity | 96.3% |
| Expedia Group, Inc. | Equity | 10.7% |
| Farfetch Ltd | Equity | 13.6% |
| Ovintiv Inc | Equity | 6.4% |
| OneMain Holdings, Inc. | Equity | 9.3% |
Source: Miller Value Partners
SoFi Technologies, Inc. (SOFI) fell over the week as Softbank announced its plan to sell all or some of its 9% stake in the company. Softbank sold 19.6M shares over the week reducing their ownership stake to 6.9%. Vontier Corporation (VNT) fell after naming Anshooman Aga as CFO effective August 29th, replacing Danaher veteran David Naemura who will stay with the company through January 1, 2023. Alaunos Therapeutics Inc. (TCRT) fell after announcing a $200M mixed shelf offering. There was limited news on Pangaea One, L.P.
Exhibit 3: Significant Detractors from Performance, 8/5/22 - 8/12/22
| Name | Type | Return |
| SoFi Technologies, Inc. | Equity | -4.1% |
| Vontier Corporation | Equity | -2.1% |
| TCRT Restricted Warrant 2019 | Derivative | -4.3% |
| Cash | Cash | -0.0% |
| Pangaea One, L.P. | Equity | -0.0% |
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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