Last week, the Opportunity Equity strategy increased 0.21%, underperforming the S&P 500’s 0.62% gain. (Exhibit 1). The strategy ended the week up 10.06% YTD, 1,189 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/3/211
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/27 - 9/3) | 0.21% | 0.62% |
| MTD | -3.80% | 2.70% |
| QTD | -9.44% | 5.81% |
| YTD | 10.06% | 21.95% |
| Inception (annualized since 6/26/00) | 9.03% | 7.58% |
Source: Bloomberg, Miller Value Partners
Matterport Inc. (MTTR) announced they have expanded ‘Matterport Capture Services’, their on demand digitization service, to 22 new US Cities and added four in the United Kingdom. This will allow customers to schedule a technician to digitize any commercial or residential property and is now available in 51 US Cities in total. Matterport announced that Seth Finkel will join as VP of Public Sector, leading strategy growth for US Government facilities. He joins from Aventum, where he was VP of Advanced Technology. News broke that Alibaba Group Holding Ltd. ADS (BABA) is investing Rmb100bn by 2025 to support the government’s goal of “Common Prosperity”. Their investments will include tech investments in underdeveloped areas, overseas expansion, agricultural investments, high-quality employment for young adults, and facilitating digital equality between urban and rural areas among others. The investments are in line with Tencent’s commitments, and come as the regulatory climate in China continues to evolve. Amazon.com Inc. (AMZN) rose through the 50-day and 100-day moving average as the company announced a partnership with Affirm Holdings, that will allow customers to purchase items over $50 with a buy-now-pay-later option and split their bill into monthly payments. The company also announced they will be hiring 55k more workers globally. News broke that the company plans to start selling Amazon branded TVs that are compatible with their Alexa voice control as early as October, and will further their build out of an in-home ecosystem. Canada Goose Holdings (GOOS) rose through the 50-day, 100-day, and 200-day moving average on limited news, while there was limited news on Metromile Inc. (MILE) as well.
Exhibit 2: Significant Contributors to Performance, 8/27/21 - 9/3/21
| Name | Type | Return |
| Matterport Inc. | Equity | 20.3% |
| Alibaba Group Holding Ltd. ADS | Equity | 6.8% |
| Metromile Inc. | Equity | 20.2% |
| AMZN C3050 1/23 | Derivative | 16.2% |
| Canada Goose Holdings | Equity | 7.9% |
Source: Miller Value Partners
Capital One Financial Corp (COF) dropped through the 50-day and 100-day moving average as Baird cut their rating on the stock to underperform from neutral with a price target of $145 (downside of 7.8%). The CEO, Richard Fairbank, was fined $638k by the Federal Trade Commission for failing to properly report his stock compensation to the authorities. The RealReal Inc. (REAL) provided a business updating reporting gross merchandise volume (GMV) was up 50% YoY in August and 41% above 2019 levels. The company guided to 3Q GMV of $365-$368mm, with the midpoint coming in over consensus of $364.9mm. Shoes and clothing continue to be the fastest growing categories for the company. Stifel lowered their price target from $19 to $17 (upside of 45.4%), while Piper Sandler adjusted their price target down from $22 to $20 (upside of 71.1%). Norwegian Cruise Line Holdings Ltd. (NCLH) fell in sympathy with other hospitality stocks as the monthly jobs report showed that there was no new hiring overall in the leisure and hospitality sectors, causing concerns over the Delta variant dampening the return to normal. DXC Technology Company (DXC) sold $1.6bn in EUR denominated notes in order to refinance their existing debt and reduce interests cost. OneMain Holdings Inc. (OMF) fell through the 100-day moving average as the company extended relief to customers in Mississippi and Louisiana impacted by Hurricane Ida. The program will allow some customers that are affected to defer some loan payments and will prevent them coming up against additional costs.
Exhibit 3: Significant Detractors from Performance, 8/27/21 - 9/3/21
| Name | Type | Return |
| Capital One Financial Corp | Equity | -10.6% |
| The RealReal Inc. | Equity | -11.6% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -5.9% |
| DXC Technology Company | Equity | -3.6% |
| OneMain Holdings, Inc. | Equity | -3.9% |
-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.
©2021 Miller Value Partners, LLC
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