Last week, the Opportunity Equity strategy gained 6.29%, outperforming the S&P 500’s 3.68% rise. (Exhibit 1). The strategy ended the week down -23.03% YTD, 931 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 9/9/221
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (9/2 - 9/9) | 6.29% | 3.68% |
| MTD | 5.45% | 2.90% |
| QTD | 17.29% | 7.80% |
| YTD | -23.03% | -13.72% |
| Inception (annualized since 6/26/00) | 6.71% | 6.77% |
Source: Bloomberg, Miller Value Partners
UBS raised its price target on Farfetch Ltd. (FTCH) to $11 from $10 (1% upside) while maintaining its neutral rating. ADT Inc. (ADT) rose above the 50 and 200-day moving averages after the company announced State Farm Insurance would acquire a 15% ownership stake in the company. As part of the agreement, State Farm will invest $300M to fund product and technology innovation for State Farm members, while Alphabet Inc. (GOOGL) will invest an additional $150M for smart home product development.
Expedia Group, Inc. (EXPE) rose above the 50-day moving average. UBS lowered its price target for the company to $109 from $112 (0% upside), maintaining its neutral rating. Mattel, Inc. (MAT) rose above the 50, 100, and 200-day moving averages on limited news, while Norwegian Cruise Line Holdings Ltd. (NCLH) rose above the 100-day moving average. Stifel wrote a positive note on the company highlighting that liquidity concerns seem overblown.
Exhibit 2: Significant Contributors to Performance, 9/2/22 - 9/9/22
| Name | Type | Return |
| Farfetch Ltd. | Equity | 16.1% |
| ADT Inc. | Equity | 16.1% |
| Norwegian Cruise Line Holdings Ltd. | Equity | 11.9% |
| Expedia Group, Inc. | Equity | 6.9% |
| Mattel, Inc. | Equity | 6.9% |
Source: Miller Value Partners
Ovintiv Inc. (OVV) announced the appointment of Ralph Izzo to their Board of Directors as Bruce Waterman retires. There was limited news on DXC Technology Company (DXC), Karuna Therapeutics, Inc. (KRTX), Green Thumb Industries Inc. (GTBIF), and Pangaea One.
Exhibit 3: Significant Detractors from Performance, 9/2/22 - 9/9/22
| Name | Type | Return |
| DXC Technology Company | Equity | -2.6% |
| Ovintiv Inc. | Equity | -0.9% |
| Karuna Therapeutics, Inc. | Equity | -2.1% |
| Green Thumb Industries Inc. | Equity | -1.6% |
| Pangaea One | Equity | 0.0% |
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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