Last week, the Opportunity Equity strategy gained 4.65%, outperforming the S&P 500’s gain of 4.46% (Exhibit 1). The strategy ended the week up 7.64% YTD, or 804 basis points behind the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 6/7/191
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (5/31 - 6/7) | 4.65% | 4.46% |
| MTD | 4.65% | 4.46% |
| QTD | -5.36% | 1.79% |
| YTD | 7.64% | 15.68% |
| Inception (annualized since 6/26/00) | 6.45% | 5.71% |
Source: Bloomberg, Miller Value Partners
American Airlines Group Inc. (AAL) gained after multiple insiders purchased 110k shares for a total of $3M, including the CEO, William Douglas Parker, who purchased $1.4M worth of stock. Lennar Corp. (LEN) crossed above the 50-day moving average while Delta Air Lines Inc. (DAL) crossed above the 100 and 200-day moving averages. There was minimal news on Genworth Financial Inc. (GNW) and Brighthouse Financial Inc. (BHF).
Exhibit 2: Significant Contributors to Performance, 5/31/19 - 6/7/19
| Name | Type | Return |
| American Airlines Group Inc | Equity | 13.6% |
| Genworth Financial Inc | Equity | 10.3% |
| Brighthouse Financial Inc | Equity | 7.0% |
| Lennar Corp Cl A | Equity | 7.5% |
| Delta Air Lines Inc | Equity | 6.9% |
Source: Miller Value Partners
Facebook Inc. (FB) declined over the week as the FTC announced its probe into FB’s competitive practices. GTY Govtech Inc. (GTYH) declined after announcing it has entered into a definitive agreement to sell 3.5m shares in a registered direct offering at a price of $7.70/share for gross proceeds of $27M. Ziopharm Oncology (ZIOP) announced the presentation of new interim analysis of clinical data for two ongoing sub-studies in the treatment of recurrent glioblastoma in adults at the American Society for Clinical Oncology (ASCO). There was minimal news on Endo International (ENDP).
Exhibit 3: Significant Detractors from Performance, 5/31/19 - 6/7/19
| Name | Type | Return |
| Facebook Inc | Equity | -2.3% |
| GTY Govtech Inc. | Equity | -10.1% |
| Ziopharm Oncology Inc | Equity | -2.3% |
| Ziopharm Oncology Restricted Warrant | Equity | -4.2% |
| Endo International plc | Equity | -1.4% |
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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