Last week, the Opportunity Equity strategy fell -6.22%, underperforming the S&P 500’s -4.73% decline. (Exhibit 1). The strategy ended the week down -27.82% YTD, 1,002 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/16/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (9/9 - 9/16) | -6.22% | -4.73% |
| MTD | -1.11% | -1.97% |
| QTD | 9.99% | 2.70% |
| YTD | -27.82% | -17.80% |
| Inception (annualized since 6/26/00) | 6.40% | 6.53% |
Source: Bloomberg, Miller Value Partners
Barclays raised its price target on Norwegian Cruise Line Holdings Ltd. (NCLH) to $16 from $14 (5% upside) while maintaining its equal weight rating. Susquehanna downgraded DXC Technology Company (DXC) to a neutral rating while lowering its price target to $31 from $39 (15% upside). Uber Technologies Inc (UBER) rose after CEO Dara Khosrowshahi presented at a conference calling out improving mobility trends, the stickiness of delivery demand trends and reiterating the company’s goal of reaching $5B in adjusted EBITDA in 2024, or roughly $4B in free cash flow. The company was hit later in the week after it was reported that the company had experienced a data breach, though there was no evidence that sensitive user data had been compromised. There was limited news on Pangaea One, L.P.
Exhibit 2: Significant Contributors to Performance, 9/9/22 - 9/16/22
| Name | Type | Return |
| Norwegian Cruise Line Holdings Ltd. | Equity | 4.9% |
| DXC Technology Company | Equity | 1.0% |
| Uber Technologies Inc | Equity | 0.5% |
| Cash | Cash | 0.0% |
| Pangaea One, L.P. | Equity | 0.0% |
Source: Miller Value Partners
Cleveland-Cliffs Inc. (CLF) fell below the 50-day moving average following steel prices lower throughout the week. Meta Platforms, Inc. (META) fell through the 50-day moving average. Piper Sandler lowered its price target on the company to $175 from $190 (20% upside). Amazon.com, Inc. (AMZN) fell below the 50-day moving average. The company announced its acquisition of Belgian warehouse technology company, Cloostermans for an undisclosed amount. Amazon has been working with Cloostermans since 2019 to move palettes, package items for delivery and reduce package waste. Mattel, Inc. (MAT) fell below the 50, 100, and 200-day moving average as most consumer discretionary stocks were hit following the negative pre-announcement by FedEx which reported a global slowdown in package volumes. Green Thumb Industries Inc. (GTBIF) fell on limited news.
Exhibit 3: Significant Detractors from Performance, 9/9/22 - 9/16/22
| Name | Type | Return |
| Cleveland-Cliffs Inc. | Equity | -19.9% |
| Mattel Inc. | Equity | -11.2% |
| Meta Platform Inc. | Equity | -13.3% |
| Amazon.com, Inc. | Equity | -7.3% |
| Green Thumb Industries Inc. | Equity | -12.5% |
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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