Last week, the Opportunity Equity strategy fell by -5.29%, underperforming the S&P 500’s -0.61% loss (Exhibit 1). The strategy ended the week down -1.65% YTD, 518 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/25/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (9/18 - 9/25) | -5.29% | -0.61% |
| MTD | -9.21% | -5.66% |
| QTD | 9.13% | 6.82% |
| YTD | -1.65% | 3.53% |
| Inception (annualized since 6/26/00) | 7.10% | 6.18% |
Source: Bloomberg, Miller Value Partners
Amazon.com Inc. (AMZN) rallied 4.8%, as Bernstein raised the stock to outperform with a $3400 price target, upside of 9.8%. Peloton Interactive, Inc (PTON) had a strong week despite a mid-week rumor that Amazon had partnered with Echelon on a cheaper alternative bike to compete with theirs. After Amazon denied the report the stock finished the week strong. Vroom, Inc. (VRM) rose on the week, benefiting from an increase in price target from JMP, who raised their price target from $66 to $75, upside of 51.4%. Goldman Sachs upgraded Vroom to a buy rating with a price target of $60 (upside of 21.1%) on the back of a shift toward online buying. Facebook Inc. (FB) rose after Oppenheimer raised their price target to $300 from $270, upside of 17.7%. There was minimal news on Workday Inc. (WDAY).
Exhibit 2: Significant Contributors to Performance, 9/18/20 - 9/25/20
| Name | Type | Return |
| Amazon.com Inc. | Equity | 4.8% |
| Workday Inc. | Equity | 7.7% |
| Peloton Interactive, Inc. | Equity | 9.4% |
| Vroom, Inc. | Equity | 6.1% |
| Facebook Inc. | Equity | 0.9% |
Source: Miller Value Partners
DXC Technology. (DXC) crossed below its 50-day moving average despite the announcement of some additions to their leadership team to support their “New DXC” initiative. Precigen Inc. (PGEN) crossed below its 100-day and 200-day moving averages and announced at the end of the week they had agreed to pay $2.5mm to settle an SEC probe into their methane bioconversion platform from when they were Intrexon. ADT Inc. (ADT) crossed below its 100-day moving average. The company’s commercial business announced that they invested in artificial intelligence start up Percepta to use to ultimately help detect and deter shoplifting. Bausch Health Companies. (BHC) fell while acquiring the right to buy all of the ophthalmology assets of Allegro Ophthalmolics. The company also announced a resolution of their Xifaxan intellectual property lawsuit with Sun Pharmaceuticals, with their gastrointestinal business Salix maintaining market exclusivity on the tablets through 2028.
Exhibit 3: Significant Detractors from Performance, 9/18/20 - 9/25/20
| Name | Type | Return |
| DXC Technology | Equity | -11.6% |
| Precigen Inc. | Equity | -23.4% |
| *New Position* | Equity | -13.0% |
| ADT Inc. | Equity | -6.3% |
| Bausch Health Companies | Equity | -11.0% |
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.
©2019 Miller Value Partners, LLC
Share