Last week, the Opportunity Equity strategy fell -2.70%, underperforming the S&P 500’s -1.68% decline. (Exhibit 1). The strategy ended the week up 7.09% YTD, 1,282 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/10/211
|Time Period||Opportunity Equity||S&P 500|
|Last Week (9/3 - 9/10)||-2.70%||-1.68%|
|Inception (annualized since 6/26/00)||8.88%||7.48%|
Source: Bloomberg, Miller Value Partners
Piper Sandler increased their price target on Matterport Inc. (MTTR) from $18 to $20 (upside of 5.9%) maintaining their overweight rating. Wells Fargo cut their price target on The RealReal Inc. (REAL) from $28 to $24 (upside of 90.6%) on headwinds to the industry. Ziopharm Oncology Inc. (ZIOP) insiders bought $434k worth of shares in the company, with four of the board members including Chairman James Huang making purchases. Wells Fargo dropped their price target on General Motors Co. (GM) from $67 to $63 (upside of 27.3%). HSBC raised their price target on Facebook Inc. (FB) from $275 to $300 (downside of 20.8%) while maintaining an underweight rating.
Exhibit 2: Significant Contributors to Performance, 9/3/21 - 9/10/21
|The RealReal Inc.||Equity||7.7%|
|Ziopharm Oncology Inc.||Equity||12.9%|
|General Motors Co.||Equity||1.4%|
|Facebook Inc. Cl A||Equity||0.7%|
Source: Miller Value Partners
Stitch Fix Inc. (SFIX) fell as reports circulated that the company is facing a mass exodus of stylists due to a combination of company changes implemented by the new CEO, Elizabeth Spaulding. DXC Technology Company (DXC) sold $1.35bn in 5yr and 7yr notes in order to refinance their existing debt and reduce their interest expense. There was limited news on Green Thumb Industries (GTBIF), ADT Inc. (ADT), and Metromile Inc. (MILE).
Exhibit 3: Significant Detractors from Performance, 9/3/21 - 9/10/21
|Green Thumb Industries||Equity||-13.7%|
|DXC Technology Company||Equity||-4.6%|
|Stitch Fix, Inc.||Equity||-9.3%|
-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.
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