Last week, the Opportunity Equity strategy gained 2.41%, outperforming the S&P 500’s 0.98% gain (Exhibit 1). The strategy ended the week up 26.17% YTD, or 1623 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 8/31/181
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/24 - 8/31) | 2.41% | 0.98% |
| MTD | 9.26% | 3.26% |
| QTD | 13.47% | 7.10% |
| YTD | 26.17% | 9.94% |
| Inception (annualized since 6/26/00) | 8.27% | 5.92% |
Source: Bloomberg, Miller Value Partners
Endo International (ENDP) was up over the week after the FDA issued a Federal Register notice proposing that vasopressin along with two other drug products, be left off the 503 Bulks list. The final decision should be made in 60 days following review of public comments. Amazon.com Inc. (AMZN) gained over the week after Morgan Stanley raised their price target to $2,500, upside of 30%. Celgene Corp. (CELG) crossed above the 200-day moving average. There was minimal news on Pandora Media Inc. (P) and Stitch Fix Inc. (SFIX).
Exhibit 2: Significant Contributors to Performance, 8/24/18 - 8/31/18
| Name | Type | Return |
| Endo International | Equity | 10.4% |
| Amazon.com Inc. | Equity | 5.6% |
| Pandora Media Inc. | Equity | 14.5% |
| Celgene Corp. | Equity | 5.0% |
| Stitch Fix Inc. | Equity | 6.8% |
Source: Miller Value Partners
CenturyLink Inc. (CTL) was named an Amazon Web Services (AWS) Managed Service Provider (MSP) Partner over the week. B Riley FBR raised their price target for Mallinckrodt (MNK) to $37 from $20, upside of 7%, but maintained its neutral rating. Imperial Capital raised its price target for Discovery Inc. (DISCA) to $32, upside 15%. Pulte Group Inc. (PHM) was down over the week as July pending home sales declined 0.7% below expectations for growth of 0.3%. There was minimal news on ADT Inc. (ADT).
Exhibit 3: Significant Detractors from Performance, 8/24/18 - 8/31/18
| Name | Type | Return |
| CenturyLink Inc. | Equity | -3.8% |
| Mallinckrodt | Equity | -2.9% |
| Discovery Inc. | Equity | -2.5% |
| Pulte Group Inc. | Equity | -2.1% |
| ADT Inc. | Equity | -0.7% |
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.
©2018 Miller Value Partners, LLC
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