Last week, the Opportunity Equity strategy strategy lost -0.53%, outperforming the S&P 500’s -1.11% loss (Exhibit 1). The strategy ended the week up 5.24% YTD, or 60 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Versus Equity Indices, Through 4/13/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (4/7 - 4/13) | -0.53% | -1.11% |
| MTD | -2.04% | -1.35% |
| QTD | -2.04% | -1.35% |
| YTD | 5.24% | 4.64% |
| Inception (annualized since 12/30/99) | 6.26% | 4.73% |
Source: Bloomberg, Miller Value Partners
Quotient Technology Inc. (QUOT) rose over the week after it was announced that peer, RetailMeNot Inc. (SALE), was to be bought by Hardland Clarke Holdings for $11.60/share, a 50% premium. Ziopharm Oncology Inc. (ZIOP) crossed above the 50-day and 100-day moving average. MGIC Investment Corp. (MTG) crossed above the 50-day and 100-day moving average after reporting its monthly operating stats for March. For the quarter, insurance in force was $183.5B, up 4.8% YoY and default inventory was down 18% YoY. MGIC was upgraded to Buy at Compass Point with a price target of $13, upside of 23% from Thursday’s close. American Airlines Group Inc. (AAL) raised Q1 guidance last week indicating Q1 RASM of 2%-4% from 1.5%-3.5% and pre-tax margins of 4-6% from 3-5%. Lennar Corp (LEN) rose after Five Point Holdings, a Lennar joint venture, filed with the SEC for an IPO. Lennar is the largest investor owning 45% in Five Point Holdings which is the largest owner and developer of mixed-use, master planned communities in California.
Exhibit 2: Significant Contributors to Performance, 4/7/17 - 4/13/17
| Name | Type | Return |
| Quotient Technology Inc. | Equity | 10.3% |
| Ziopharm Oncology Inc. | Equity | 17.5% |
| MGIC Investment Corp. | Equity | 5.4% |
| American Airlines Group | Equity | 3.7% |
| Lennar Corp. | Equity | 2.2% |
Source: Miller Value Partners
Endo Pharmaceuticals Holdings Inc. (ENDP) fell below the 50-day moving average despite pre-announcing Q1 revenues between $1,015-$1,035M and EBITDA of $440-460M. The company indicated that the number of mesh cases rose from 9,700 to 10,500. Apple Inc. (AAPL) was down over the week. For the first time since 2010, Apple lost its spot as the best laptop brand according to the annual survey by Laptop Mag, coming in 5th place this year. Apple lost market share to Samsung in the first quarter resulting in market share of 17% compared to 20% last quarter. According to the New York Post, Pandora Media Inc. (P) has been in talks with PE firms to raise cash to fund their expansion. Platform Specialty Products Corp. (PAH) fell below the 50-day moving average. OneMain Holdings Inc. (OMF) fell below the 100-day moving average.
Exhibit 3: Significant Detractors from Performance, 4/7/17 - 4/13/17
| Name | Type | Return |
| Endo Pharmaceuticals Holdings | Equity | -9.1% |
| Apple Inc. C100 1/18 | Derivatives | -5.0% |
| Pandora Media Inc. | Equity | -6.4% |
| Platform Specialty Products Corp. | Equity | -3.8% |
| OneMain Holdings Inc. | Equity | -3.8% |
Source: Miller Value Partners
1The 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 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.
©2017 Miller Value Partners
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