Last week, the Opportunity Equity strategy -0.45%, outperforming the S&P 500’s -0.54% decline. (Exhibit 1). The strategy ended the week up 6.61% YTD, 1,265 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/17/211
|Time Period||Opportunity Equity||S&P 500|
|Last Week (9/10 - 9/17)||-0.45%||-0.54%|
|Inception (annualized since 6/26/00)||8.85%||7.45%|
Source: Bloomberg, Miller Value Partners
Wedbush increased their price target on Matterport Inc. (MTTR) from $22 to $26 (upside of 16.8%) maintaining their outperform rating. The company also named Pranab Smith as Chief Information Officer, joining from Genesys where he held the same role. Diamondback Energy Inc. (FANG) rose through the 50-day and 100-day moving average as the company announced a $2bn buyback that will begin immediately. The company now plans to return 50% of FCF to shareholders beginning in 4Q21, versus 2022 previously. Truist increased their price target from $122 to $130 (upside of 57.3%). Citron Research published a positive report on The RealReal Inc. (REAL) suggesting the stock is worth at least $30 (upside of 116.8%). Bank of America upgraded their rating on DXC Technology Company (DXC) to buy with a price target of $45 (upside of 25.1%). Norwegian Cruise Line Holdings (NCLH) rose through the 50-day moving average as their subsidiary Oceania Cruises reported that they set an all-time single day booking record, breaking the previous mark by 60%.
Exhibit 2: Significant Contributors to Performance, 9/10/21 - 9/17/21
|Diamondback Energy Inc.||Equity||10.1%|
|DXC Technology Company||Equity||4.6%|
|The RealReal Inc.||Equity||10.0%|
|Norwegian Cruise Line Holdings Ltd.||Equity||4.1%|
Source: Miller Value Partners
Precigen (PGEN) fell through the 50-day moving average on limited news. Stifel Nicholas cut their price target on Alibaba Group Holding Ltd. ADS (BABA) from $260 to $210 (upside of 31.2%). Chinese regulators asked all the companies in the industry to stop blocking links from competitors, continuing the regulatory crack down in the country. The company also announced a $300mm investment in the autonomous vehicle company Deeproute.ai. Vroom, Inc. (VRM) announced that Robert Krakowiak was appointed CFO effective immediately, with David Jones remaining with the company through the end of November. Krakowiak was CFO of Stoneridge Corporation since 2016, a designer/manufacturer of electrical and electronic vehicle systems. Jeffries increased their price target on Facebook Inc. (FB) from $425 to $440 (upside of 20.6%), while Goldman Sachs initiated coverage with a price target of $455 (upside of 24.8%) and a buy rating.
Exhibit 3: Significant Detractors from Performance, 9/10/21 - 9/17/21
|Alibaba Group Holding Ltd. ADS||Equity||-4.8%|
|Facebook Inc. Cl A||Equity||-3.7%|
-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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