Income Strategy Weekly Update for 03/29/24 – 04/05/24

Chord Rises with Oil, While MicroStrategy Slips as Bitcoin Pares Gains

Last week, the Income Strategy’s representative account fell -2.30% (net of fees), underperforming the ICE BofA Merrill Lynch High Yield Master II Index’s -0.52% loss and underperforming the S&P 500’s -0.93% loss. (Exhibit 1). The strategy ended the week up 9.43% YTD, or 844 basis points ahead of the high yield index and 10 basis points behind the S&P 500.

Exhibit 1: Performance of Income Strategy Representative Account Net of Fees Versus High Yield, Equity Indices, Through 4/5/2024¹

Time Period	Income Strategy Representative Account	ICE BofA Master High Yield II Index	S&P 500 Index
Last Week (3/29- 4/5)	-2.30%	-0.52%	-0.93%
MTD	-2.30%	-0.52%	-0.93%
QTD	-2.30%	-0.52%	-0.93%
YTD	9.43%	0.99%	9.53%
1 Year	31.70%	10.59%	29.24%
5 Year	5.99%	3.84%	14.36%
10 Year	4.65%	4.30%	12.90%
Inception (annualized since 2/28/2014)	4.61%	4.30%	12.81%

Source: Bloomberg, Miller Value Partners.

Five equities comprised last week’s top 5 contributors. Chord Energy (CHRD) rose with oil prices, as WTI crude oil futures rose above $85 last week for the first time since October 2023. GEO Group (GEO) sold ~$1.73B in bonds and loans last week to refinance some of its outstanding debt. Shares of Alliance Resource Partners (ARLP) advanced above the stock’s respective 50-day, 100-day, and 200-day moving averages. There was no price-changing news for Public Policy Holding Company (PPHC LN) or UGI Corp (UGI).

Exhibit 2: Significant Contributors to Income Strategy Representative Account Performance, 03/29/24 – 04/05/24

Name	Type
Chord Energy Corp	Equity
Public Policy Holding Company	Equity
GEO Group Inc	Equity
Alliance Resource Partners	Equity
UGI Corp	Equity

Source: Miller Value Partners.

Four equities and one bond comprised last week’s top 5 detractors. MicroStrategy Inc 0.75% 12/15/2025 fell in sympathy with Bitcoin which slumped below $68K. Bread Financial Holdings (BFH) fell despite Wolfe Research upgrading the consumer finance company to Outperform with a price target of $48, or ~35.3% above Friday’s closing market price. The analyst attributed the upgrade to evidence that delinquency rate formations may be rolling over and BFH’s ability to mitigate lower late fees, while the company’s return on tangible equity could stabilize. There was no price-changing news for Stellantis NV (STLA), Western Alliance Bancorp (WAL), or OneMain Holdings (OMF).

Exhibit 3: Significant Detractors From Income Strategy Representative Account Performance, 03/29/24 – 04/05/24

Name	Type
MicroStrategy Inc 0.75% 12/15/2025	Bond
Stellantis NV	Equity
Western Alliance Bancorp	Equity
Bread Financial Holdings	Equity
OneMain Holdings	Equity

Source: Miller Value Partners.

As of prior week’s market close unless otherwise stated.

¹The performance figures for the representative Income Strategy account reflect the deduction of investment management fees and certain other expenses. Returns greater than 1 year are annualized.

For additional information about Income Strategy performance, please click on the Income Strategy Composite Performance Disclosure. Past performance is no guarantee of future results.

Significant Contributors and Significant Detractors are based on holdings that had the greatest effect on representative account performance for the week. Holdings that have been in the portfolio 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. There is no guarantee that market trends discussed herein will continue. 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. Content may not be reprinted, republished or used in any manner without written consent from Miller Value Partners. Portfolio composition is shown as of a point in time and is subject to change without notice.