Last week, the Opportunity Equity strategy fell by -2.50%, underperforming the S&P 500’s -2.27% loss (Exhibit 1). The strategy ended the week up 6.45% YTD, 103 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/4/201
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/28 - 9/4) | -2.50% | -2.27% |
| MTD | -1.73% | -2.06% |
| QTD | 18.12% | 10.89% |
| YTD | 6.45% | 7.48% |
| Inception (annualized since 6/26/00) | 7.55% | 6.40% |
Source: Bloomberg, Miller Value Partners
Genworth Financial Inc. (GNW). Surged 46% on the news that China Oceanwide has made significant progress toward being able to finance the purchase of the insurer in front of the planned September 30th closing of the transaction. The Genworth Board chose to proceed with the merger agreement that is four years in the making following the news, rather than exercise their end of August opt out. The stock crossed above the 100-day and 200-day moving averages on the move. Stitch Fix, Inc. (SFIX) crossed above the 50-day moving average. There was a positive note on the name in Seeking Alpha. Flexion Therapeutics (FLXN) jumped on a Wells Fargo report that expects to see upside to consensus sales estimates for the remainder of the year with an updated price target of $16, upside of 31%. Peloton Interactive Inc. (PTON) saw price target increases at both JPMorgan and JMP Securities with price targets of $105 and $109, respectively, upside of 30% and 36%. OneMain Holdings Inc. (OMF) rose 3.8% on limited news.
Exhibit 2: Significant Contributors to Performance, 8/28/20 - 9/4/20
| Name | Type | Return |
| Genworth Financial Inc. | Equity | 46.0% |
| Stitch Fix, Inc. | Equity | 10.4% |
| Flexion Therapeutics | Equity | 7.2% |
| Peloton Interactive, Inc. | Equity | 6.2% |
| OneMain Holdings Inc. | Equity | 3.8% |
Source: Miller Value Partners
Bernstein upgraded Farfetch Ltd. (FTCH) to a Market-Perform rating from an underperform rating increasing their price target to $20 (up from $9.60), downside of 25%. Quotient Technology Inc. (QUOT) was down 13.5%, crossing below the 50-day and 200-day moving averages. ADT Inc. (ADT) launched a new comprehensive do it yourself (DIY) fully-customizable solution under its Blue by ADT brand offering both DIY monitoring and professional monitoring. Morningstar raised their price target on Workday Inc. (WDAY) to $198, downside of 5%, and upgraded the name to a wide moat with greater customer stickiness. There was minimal news on Precigen Inc. (PGEN).
Exhibit 3: Significant Detractors from Performance, 8/28/20 - 9/4/20
| Name | Type | Return |
| Farfetch Ltd. | Equity | -4.8% |
| Precigen Inc. | Equity | -18.0% |
| Quotient Technology Inc. | Equity | -13.5% |
| ADT Inc. | Equity | -6.0% |
| Workday Inc. | Equity | -11.5% |
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
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