Last week, Opportunity Equity gained 0.34%, underperforming the S&P 500’s 1.47% rise (Exhibit 1). The strategy ended the week up 14.73% YTD, or 592 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Versus S&P 500, through 5/26/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (5/19 - 5/26) | 0.34% | 1.47% |
| MTD | 6.16% | 1.54% |
| QTD | 6.79% | 2.59% |
| YTD | 14.73% | 8.81% |
| Inception (annualized since 12/30/99) | 6.74% | 4.93% |
Source: Bloomberg, Miller Value Partners
Endo Pharmaceuticals Holdings Inc. (ENDP) crossed above the 100-day moving average and Mizuho Securities raised its price target to $19, upside of 45%. Both American Airlines Group Inc. (AAL) and Delta Air Lines Inc. (DAL) were up over the week after an industry wide domestic fare increase. Edward Bastian, CEO of Delta, sold 25,000 shares on Monday, decreasing his share count by 8%. Amazon.com Inc. (AMZN) continued its climb towards $1,000/share but ended the week at $995.78. There was minimal news on Wayfair Inc. (W).
Exhibit 2: Significant Contributors to Performance, 5/19/17 - 5/26/17
| Name | Type | Return |
| Endo Pharmaceuticals Holdings Inc. | Equity | 10.4% |
| American Airlines Group Inc. | Equity | 7.8% |
| Delta Air Lines Inc. | Equity | 5.4% |
| Wayfair Inc. | Equity | 5.0% |
| Amazon.com Inc. | Equity | 3.8% |
Source: Miller Value Partners
Alexion Pharmaceuticals Inc. (ALXN) announced that the Chief Commercial Officer, Chief Human Resources Officer, Chief Financial Officer and Head of R&D will resign at different times throughout 2017 as part of the new CEO’s, Ludwig Hantson, management shakeup. The company announced that Brian Goff will be the new Chief Commercial Officer effective June 1st. He previously worked for Neurovance as Chief Commercial Officer and Member of the Board of Directors. The stock was downgraded to neutral at JPMorgan with a price target of $160 (64% upside) but upgraded to overweight at Morgan Stanley with a price target of $138 (41% upside). Platform Specialty Products Corp. (PAH) and Ziopharm Onoclogy Inc. (ZIOP) fell below the 50-day and 100-day moving average. There was minimal news on the other top detractors.
Exhibit 3: Significant Detractors from Performance, 5/19/17 - 5/26/17
| Name | Type | Return |
| Alexion Pharmaceuticals | Equity | -13.9% |
| Platform Specialty Products Corp. | Equity | -5.8% |
| Intrexon Corp. | Equity | -6.8% |
| Valeant Pharmaceuticals International Inc. | Equity | -5.1% |
| Ziopharm Oncology Inc. | Equity | -10.0% |
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
Share