Last week, Opportunity Equity strategy declined -0.20%, underperforming the S&P 500’s 0.75% rise (Exhibit 1). The strategy ended the week up 13.68% YTD, or 310 basis points ahead of the S&P 500.
Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 8/25/171
| Time Period | Opportunity Equity | S&P 500 |
| Last Week (8/18 - 8/25) | -0.20% | 0.75% |
| MTD | -6.28% | -0.90% |
| QTD | -5.76% | 1.14% |
| YTD | 13.68% | 10.58% |
| Inception (annualized since 12/30/99) | 6.59% | 4.96% |
Source: Bloomberg, Miller Value Partners
OneMain Holdings Inc. (OMF) was raised to overweight from equal weight at Stephens with a price target of $35, upside of 29%. JPMorgan Chase & Co. (JPM/WS) Warrants and MGIC Investment Corp. (MTG) crossed above the 50-day moving average and Stifel raised Wayfair Inc. (W) to a buy rating with a price target of $78, upside of 13%. There was minimal news on Ziopharm Oncology Inc. (ZIOP).
Exhibit 2: Significant Contributors to Performance, 8/18/17 – 8/25/17
| Name | Type | Return |
| Ziopharm Oncology Inc. | Equity | 14.4% |
| OneMain Holdings Inc. | Equity | 3.7% |
| JPMorgan Chase & Co. - Warrant | Derivative | 3.1% |
| MGIC Investment Corp. | Equity | 3.1% |
| Wayfair Inc. | Equity | 3.5% |
Source: Miller Value Partners
Bank of America cut their price target for RH (RH) to $44 from $53. Platform Specialty Products Corp (PAH) announced its intention to split into two publicly traded companies in 2018, an agricultural business and a performance chemicals business. GameStop Corp. (GME) fell below the 50-day moving average after announcing earnings that missed consensus ($0.15 vs. $0.16) but the topline rose 3.4% YoY. The company saw margins decline as the sales mix shifted to lower margin products and the company reiterated full year EPS guidance of $3.10-$3.40. Lord Abbett & Co filed suit against Valeant Pharmaceuticals International Inc. (VRX) alleging stock fraud and citing violations of the NJ RICO laws. There was minimal news on Quotient Technology Inc. (QUOT).
Exhibit 3: Significant Detractors from Performance, 8/18/17 - 8/25/17
| Name | Type | Return |
| RH | Equity | -9.0% |
| Platform Specialty Products Corp. | Equity | -9.6% |
| GameStop Corp. | Equity | -8.6% |
| Valeant Pharmaceuticals International | Equity | -1.7% |
| Quotient Technology Inc. | Equity | -1.7% |
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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