Last week, the Opportunity Equity strategy fell -5.41%, underperforming the S&P 500’s -1.16% loss. (Exhibit 1). The strategy ended the week down -23.77% YTD, 1,338 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 8/19/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/12 - 8/19) | -5.41% | -1.16% |
| MTD | 4.92% | 2.50% |
| QTD | 16.16% | 11.95% |
| YTD | -23.77% | -10.39% |
| Inception (annualized since 6/26/00) | 6.69% | 6.97% |
Source: Bloomberg, Miller Value Partners
Bank of America initiated on Mattel, Inc. (MAT) with a buy rating and a $31 price target (28% upside). Energy Transfer LP (ET) rose after the company completed the sale of its 51% ownership stake in Energy Transfer Canada. The sale of these assets will allow the company to further deleverage its balance sheet and redeploy capital within its U.S. footprint. Barclays raised its price target to $14 from $13 (19% upside), while RBC raised its price target to $16 from $15 (35% upside). General Motors Co (GM) rose after the company announced it would reinstate its quarterly dividend at a rate of $0.09/share ($0.36/share annually, a 0.9% annualized yield). In addition, GM announced it would resume opportunistic share repurchases and has increased the existing program to $5B from $3.3B (~8.5% of the current market cap). PureTech Health PLC (PRTC LN) continued to rise following positive results from one of its founded entities Karuna Therapeutics, which it still owns a 3.5% stake in.
Exhibit 2: Significant Contributors to Performance, 8/12/22 - 8/19/22
| Name | Type | Return |
| Mattel, Inc. | Equity | 2.8% |
| PureTech Health PLC | Equity | 6.2% |
| Energy Transfer LP | Equity | 1.2% |
| *New Security* | Equity | 37.1% |
| General Motors Co | Equity | 0.6% |
Source: Miller Value Partners
Farfetch Ltd (FTCH) fell through the 50 and 100-day moving averages on limited news. Teva Pharmaceutical Industries Limited (TEVA) fell following the announcement of a Zantac litigation settlement with a private individual for $500k. Investors are now concerned about the potential size of a global legal liability given the size of the single individual settlement. Uber Technologies Inc (UBER) announced it would partner with Office Depot to deliver school and office supplies throughout the United States. Taylor Morrison Home Corporation (TMHC) fell through the 100-day moving average after July housing starts fell -9.6% sequentially, far more than consensus had estimated at -2.1%. SoFi Technologies, Inc. (SOFI) fell through the 50 and 100-day moving averages as Softbank continued its plan to sell all or some of its 9% stake in the company. Softbank sold 18.3M shares over the week reducing their ownership stake to 4.9%.
Exhibit 3: Significant Detractors from Performance, 8/12/22 - 8/19/22
| Name | Type | Return |
| Farfetch Ltd | Equity | -19.7% |
| Teva Pharmaceutical Industries Limited | Equity | -7.5% |
| Uber Technologies Inc | Equity | -10.7% |
| Taylor Morrison Home Corporation | Equity | -8.7% |
| SoFi Technologies, Inc. | Equity | -16.7% |
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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