December 2, 2019

Opportunity Equity Update for Week Ended 11/29/19

Peloton Soars on Reports of Strong Holiday Traffic While Intrexon Falls Below its 50-Day Moving Average

Last week, the Opportunity Equity strategy rose 3.04%, outperforming the S&P 500’s 1.04% gain (Exhibit 1). The strategy ended the week up 32.89% YTD, or 526 basis points ahead of the S&P 500.

Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 11/29/191

Time Period Opportunity Equity S&P 500
Last Week (11/22 – 11/29) 3.04% 1.04%
MTD 9.45% 3.63%
QTD 17.59% 5.87%
YTD 32.89% 27.63%
Inception (annualized since 6/26/00) 7.45% 6.10%

Source: Bloomberg, Miller Value Partners

Peloton (PTON) soared on reports the company was seeing strong traffic on Black Friday. Further, SunTrust stated early readings into Peloton’s marketing promotion of its home holiday trial bodes well for next quarter’s results. Citi maintained their “Neutral” rating on ADT (ADT) but increased their price target to $9.20 (from $6.00), in-line with current levels. Ziopharm Oncology (ZIOP) rose above its 100-day moving average as the company stated it saw positive data from two ongoing trials, showing a decrease in tumors in adults with recurrent or progressive glioblastoma. Endo International (ENDP) advanced on reports the company, along with other generics makers, were in talks with the Department of Justice to end U.S. probes. Flexion (FLXN) gained as BTIG initiated coverage with a “Buy” rating and $27 price target, 52% implied upside, citing expectations for sales growth acceleration into 2020.

Exhibit 2: Significant Contributors to Performance, 11/22/19 – 11/29/19

Name Type Return
Peloton Interactive, Inc. Equity 20.0%
ADT, Inc. Equity 6.3%
Ziopharm Oncology, Inc. Equity 10.4%
Endo International Equity 6.7%
Flexion Therapeutics Equity 5.5%

Source: Miller Value Partners

Intrexon (XON) fell below its 50-day moving average. Qualcomm (QCOM) fell despite Cowen reaffirming their “Outperform” rating and $100 price target, 20% implied upside. Quotient Technology (QUOT) formed a golden cross as the stock’s 50-day moving average moved above its 100-day. There was no news on Genworth Financial (GNW) or Eventbrite (EB).

Exhibit 3: Significant Detractors from Performance, 11/22/19 – 11/29/19

Name Type Return
Intrexon Corp Equity -5.4%
Genworth Financial, Inc. Equity -2.5%
Qualcomm, Inc. Equity -1.6%
Quotient Technology, Inc. Equity -0.3%
Eventbrite, Inc. Equity -0.3%

Source: Miller Value Partners

1The performance figures reflect the results of a representative account net of management fee 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. Content may not be reprinted, republished or used in any manner without written consent from Miller Value Partners.

©2019 Miller Value Partners, LLC

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