Last week, Opportunity Equity strategy declined -2.25%, underperforming the S&P 500’s -0.58% decline (Exhibit 1). The strategy ended the week up 13.90% YTD, or 414 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 8/18/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/11 - 8/18) | -2.25% | -0.58% |
| MTD | -6.10% | -1.64% |
| QTD | -5.58% | 0.38% |
| YTD | 13.90% | 9.76% |
| Inception (annualized since 12/30/99) | 6.60% | 4.92% |
Source: Bloomberg, Miller Value Partners
Endo Pharmaceuticals Holdings Inc. (ENDP) received three additional patents on Vasostrict that reinforce protection on its largest product for the near-to-medium term. Valeant Pharmaceuticals International Inc. (VRX) crossed above the 200-day moving average after receiving FDA confirmation of its intent to issue a Voluntary Action Indicated (VAI) inspection classification for its Bausch + Lomb manufacturing facility in Tampa, FL. Pulte Group Inc. (PHM) was up over the week despite July residential construction data coming in weaker than expected due to soft multifamily activity. There was minimal news on the other top contributors.
Exhibit 2: Significant Contributors to Performance, 8/11/17 – 8/18/17
| Name | Type | Return |
| Endo Pharmaceuticals Holdings | Equity | 14.9% |
| Valeant Pharmaceuticals International | Equity | 3.6% |
| Quotient Technology Inc. | Equity | 2.5% |
| Pulte Group Inc. | Equity | 1.8% |
| Pangaea One L.P. | Equity | 5.5% |
Source: Miller Value Partners
RH (RH) fell below the 100-day moving average after Goldman Sachs published research stating that RH’s deleveraging and refinancing is likely to favor credit over equity. Intrexon Corp. (XON) declined over the week as Randal Kirk, CEO, led multiple insider purchases and bought $2.5M worth of stock. American Airlines Group Inc. (AAL) fell below the 100-day and 200-day moving average. There was minimal news on Platform Specialty Products Corp. (PAH).
Exhibit 3: Significant Detractors from Performance, 8/11/17 - 8/18/17
| Name | Type | Return |
| RH | Equity | -10.9% |
| Intrexon Corp. | Equity | -11.9% |
| *Recently Added Security* | Equity | -30.3% |
| Platform Specialty Products Corp. | Equity | -6.4% |
| American Airlines Group Inc. | Equity | -5.8% |
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, LLC
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