June 4, 2018

Opportunity Equity Update for Week Ended 6/1/18

Intrexon Climbs Above the 200-day Moving Average While Discovery Drops Below the 200-day Moving Average

Last week, the Opportunity Equity strategy lost 0.15%, underperforming the S&P 500’s 0.54% rise (Exhibit 1). The strategy ended the week up 5.67% YTD, or 253 basis points ahead of the S&P 500.

Exhibit 1: Preliminary Performance of Opportunity Equity Strategy Versus S&P 500, Through 6/1/181

Time Period Opportunity Equity S&P 500
Last Week (5/25 -6/1) -0.15% 0.54%
MTD 0.85% 1.09%
QTD 8.35% 3.93%
YTD 5.67% 3.14%
Inception (annualized since 6/26/00) 7.32% 5.63%

Source: Bloomberg, Miller Value Partners

Intrexon Corp. (XON) crossed above the 200-day moving average. Pandora Media Inc. (P) announced the completion of its acquisition of AdsWizz, the global leader in digital audio advertising technology. MKM Partners raised their price target for Amazon.com Inc. (AMZN) to $1,840, up from $1,750, upside of 12%. There was minimal news on Platform Specialty Products Corp. (PAH) and Wayfair Inc. (W).

Exhibit 2: Significant Contributors to Performance, 5/25/18 – 6/1/18

Name Type Return
Platform Specialty Product Corp. Equity 6.6%
Intrexon Corp. Equity 5.4%
Wayfair Inc. Equity 5.7%
Pandora Media Inc. Equity 6.3%
Amazon.com Inc. Equity 2.0%

Source: Miller Value Partners

Discovery Inc. (DISCA) fell below the 200-day moving average. Over the weekend Comcast announced it had removed certain channels from its most basic multichannel video tier, leading to Discovery trading down but most analysts view the move as overdone. There was minimal news on the other top detractors..

 Exhibit 3: Significant Detractors from Performance, 5/25/18 – 6/1/18

Name Type Return
RH Equity -5.8%
JPMorgan Chase & Co. – Warrants Derivative -3.4%
Discovery Inc. Equity -6.2%
OneMain Holdings Inc. Equity -2.8%
United Continental Holdings Equity -3.4%

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.

©2018 Miller Value Partners, LLC

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