Income Strategy Weekly Update for 04/05/24 – 04/12/24

Public Policy Gains Technical Momentum, While AT&T Faces Technical Reversal

Last week, the Income Strategy’s representative account fell -2.48% (net of fees), underperforming the ICE BofA Merrill Lynch High Yield Master II Index’s -0.62% loss and underperforming the S&P 500’s -1.52% loss. (Exhibit 1). The strategy ended the week up 6.71% YTD, or 634 basis points ahead of the high yield index and 115 basis points behind the S&P 500.

Exhibit 1: Performance of Income Strategy Representative Account Net of Fees Versus High Yield, Equity Indices, Through 4/12/2024¹

Time Period	Income Strategy Representative Account	ICE BofA Master High Yield II Index	S&P 500 Index
Last Week (4/5- 4/12)	-2.48%	-0.62%	-1.52%
MTD	-4.72%	-1.14%	-2.44%
QTD	-4.72%	-1.14%	-2.44%
YTD	6.71%	0.37%	7.86%
1 Year	26.18%	9.31%	27.19%
5 Year	5.30%	3.60%	13.88%
10 Year	4.64%	4.23%	13.02%
Inception (annualized since 2/28/2014)	4.34%	4.23%	12.62%

Source: Bloomberg, Miller Value Partners.

Three equities and two bonds comprised last week’s top 5 contributors. Shares of Public Policy Holding Company (PPHC LN) advanced above the stock’s 50-day moving average last week. Cannabist Co Holdings 9.5% 2/3/206 rose as the company announced it was expanding its partnership with Revelry Herb Co, an artisan-quality flower and pre-roll brand, into the Maryland, Ohio, Pennsylvania, and New York markets. There was no price-changing news for MicroStrategy Inc 0.75% 12/15/2025, Chord Energy (CHRD), or CTO Realty Growth (CTO) last week.

Exhibit 2: Significant Contributors to Income Strategy Representative Account Performance, 04/05/24 – 04/12/24

Name	Type
Public Policy Holding Company	Equity
MicroStrategy Inc 0.75% 12/15/2025	Bond
Chord Energy Corp	Equity
CTO Realty Growth Inc	Equity
Cannabist Co Holdings 9.5% 2/3/2026	Bond

Source: Miller Value Partners.

Five equities comprised last week’s top 5 detractors. Shares of AT&T (T) declined below the stock’s respective 50-day and 100-day moving averages last week. Jackson Financial (JXN), Lincoln National (LNC), Western Alliance Bancorp (WAL), and OneMain Holdings (OMF) fell in sympathy with a broad decline in financials during the week.

Exhibit 3: Significant Detractors From Income Strategy Representative Account Performance, 04/05/24 – 04/12/24

Name	Type
AT&T Inc	Equity
Jackson Financial Inc	Equity
Lincoln National Corp	Equity
Western Alliance Bancorp	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.