Last week, the Opportunity Equity strategy strategy gained 1.53%, outperforming the S&P 500’s 0.87% rise (Exhibit 1). The strategy ended the week up 6.84% YTD, or 130 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Versus Equity Indices, Through 4/21/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (4/13 - 4/21) | 1.53% | 0.87% |
| MTD | -0.55% | -0.49% |
| QTD | -0.55% | -0.49% |
| YTD | 6.84% | 5.54% |
| Inception (annualized since 12/30/99) | 6.34% | 4.77% |
Source: Bloomberg, Miller Value Partners
Platform Specialty Products Corp. (PAH) crossed above the 50-day moving average. PAH successfully completed the repricing of its existing USD B-4 and EUR C-3 term loan tranches, totaling $1.93B. This repricing resulted in a 100bps reduction in the interest rate across both the USD and Euro tranches. Wayfair Inc. (W) was up over the week after Wedbush analyst, Seth Basham, said Wayfair could be an acquisition target for companies looking to gain presence online after Petsmart’s pricey acquisition of Chewy.com. American Airlines Group Inc. (AAL) crossed above the 50-day and 100-day moving average. Endurance International Group Holdings (EIGI) rose during the week after announcing the adoption of a CEO transition plan. Hari Ravichandran, CEO, will stay on as CEO and serve as a Board member while the Company searches for his successor. There was minimal news on RH (RH).
Exhibit 2: Significant Contributors to Performance, 4/13/17 - 4/21/17
| Name | Type | Return |
| Platform Specialty Products Corp. | Equity | 4.4% |
| RH | Equity | 3.4% |
| Wayfair Inc. | Equity | 5.6% |
| American Airlines Group | Equity | 4.2% |
| Endurance International Group Holdings | Equity | 5.9% |
Source: Miller Value Partners
Valeant Pharmaceuticals International Inc. (VRX) fell over the week as Deutsche Bank lowered the price target to $18 from $19, upside of 112% and Wells Fargo lowered their price range to $7-9 from $10-13, downside of -6% at the midpoint. Pulte Group Inc. (PHM) fell over the week after March total housing starts fell 7% QoQ to 1,215K, below consensus of a 3% decline. There was minimal news on the other top detractors.
Exhibit 3: Significant Detractors from Performance, 4/13/17 - 4/21/17
| Name | Type | Return |
| Valeant Pharmaceuticals International | Equity | -10.2% |
| Ziopharm Oncology | Equity | -7.4% |
| Endo Pharmaceuticals Holdings | Equity | -4.3% |
| Pulte Group Inc. | Equity | -1.6% |
| Alexion Pharmaceuticals | Equity | -1.3% |
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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