Last week, Opportunity Equity strategy lost -0.48%, underperforming the S&P 500’s 0.12% gain (Exhibit 1). The strategy ended the week up 13.60% YTD, or 386 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 6/16/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (6/9 – 6/16) | -0.48% | 0.12% |
| MTD | 0.98% | 0.99% |
| QTD | 5.74% | 3.46% |
| YTD | 13.60% | 9.74% |
| Inception (annualized since 12/30/1999) | 6.66% | 4.96% |
Source: Bloomberg, Miller Value Partners
Wayfair Inc. (W) maintained its overweight rating at Piper Jaffray with the target price increased to $87, 14% upside. RH (RH) crossed above the 50-day moving average and Citi increased its target price to $63 from $52, upside of 20%. Alexion Pharmaceuticals (ALXN) announced last week that Paul Clancy (formerly at Biogen) would be joining the company as Chief Financial Officer, the street viewed this positively. Endurance International Group Holdings (EIGI) crossed above the 200-day moving average after announcing the completion of its previously announced refinancing of the outstanding $716.625M term loans due November 2019 and $980.625M incremental term loan due February 2023. There was minimal news on Pulte Group Inc. (PHM).
Exhibit 2: Significant Contributors to Performance, 6/9/17 – 6/16/17
| Name | Type | Return |
| Wayfair | Equity | 8.7% |
| RH | Equity | 3.4% |
| Alexion Pharmaceuticals | Equity | 8.2% |
| Endurance International Group | Equity | 6.3% |
| Pulte Group Inc. | Equity | 2.4% |
Source: Miller Value Partners
Apple Inc. (AAPL) fell below the 50-day moving average. Mizuho downgraded the stock to neutral from buy with a price target of $150, 5% upside. Pandora Media Inc. (P) was held at Neutral at Susquehanna but with a lower price target of $7 from $12, FBR upgraded the stock to outperform and Oppenheimer downgraded the stock to market perform. Platform Specialty Products Corp. (PAH) declined after the New York Post reported that Platform is having difficulties finding a potential buyer for its AgroSolutions business. Platform’s management did not comment on the report. Nomura lowered its price target to $14 from $16, upside of 14%. Endo Pharmaceuticals Holdings Inc. (ENDP) was initiated at Cantor Fitzgerald with a Neutral rating and a price target of $12, upside of 11%. There was minimal news on American Airlines Group Inc. (AAL).
Exhibit 3: Significant Detractors from Performance, 6/9/17 – 6/16/17
| Name | Type | Return |
| Apple Inc. C100 1/18 | Derivative | -11.3% |
| Pandora Media Inc. | Equity | -18.0% |
| Platform Specialty Products | Equity | -5.0% |
| Endo Pharmaceuticals Holdings | Equity | -6.3% |
| American Airlines Group | Equity | -2.9% |
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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