June 8, 2020

Opportunity Equity Update for Week Ended 6/5/20

Airlines Gain on Better Summer Outlook While Workday Down on Minimal News

Last week, the Opportunity Equity strategy gained 13.28%, outperforming the S&P 500’s 4.96% return (Exhibit 1). The strategy ended the week down -7.62% YTD, or 736 basis points behind the S&P 500.

Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 6/5/201

Time Period Opportunity Equity S&P 500
Last Week (5/29 – 6/5) 13.28% 4.96%
MTD 13.28% 4.96%
QTD 51.30% 24.05%
YTD -7.62% -0.26%
Inception (annualized since 6/26/00) 6.88% 6.08%

Source: Bloomberg, Miller Value Partners

United Airlines Holding Inc. (UAL),  Delta Air Lines Inc. (DAL) and Boeing Co. (BA) gained in sympathy with American after American announced better demand trends with July capacity guidance down ~60% YoY compared to the down 70% in June. American also noted that they are seeing better load factors which have moved to 55% in May from 15% in April. Boeing also climbed after being listed among Third Point Offshore’s monthly winners in May. ADT Inc. (ADT) was mentioned in a positive Seeking Alpha report noting that the company is no longer just a debt story. OneMain Holdings Inc. (OMF) crossed above the 100-day moving average.

Exhibit 2: Significant Contributors to Performance, 5/29/20 – 6/5/20

Name Type Return
United Airlines Holdings Inc. Equity 51.2%
ADT Inc. Equity 18.2%
OneMain Holding Inc. Equity 29.0%
Boeing Co. Equity 40.9%
Delta Air Lines Inc. Equity 35.5%

Source: Miller Value Partners

There were only two detractors this week. There was minimal news on Workday (WDAY) and GTY Technology Holdings Inc. Warrants (GTYHW).

Exhibit 3: Significant Detractors from Performance, 5/29/20 – 6/5/20

Name Type Return
Workday Inc. Equity -2.6%
*Recently Added* Option -68.0%
GTY Technology Holdings Inc. – Warrants Warrant -19.4%

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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