Miller Opportunity Trust | |||||||||
Schedule of Investments (unaudited) | |||||||||
September 30, 2021 | |||||||||
Security | Shares | Value |
Common Stocks ― 101.4% | ||||||||||||
Communication Services ― 9.8% | ||||||||||||
Interactive Media & Services ― 9.8% | ||||||||||||
Alphabet Inc., Class A Shares *(a) | 36,000 | $ | 96,246,720 | |||||||||
Facebook Inc., Class A Shares *(a) | 250,000 | 84,847,500 | ||||||||||
Matterport Inc. * | 2,912,500 | 55,075,375 | ||||||||||
Total Interactive Media & Services | 236,169,595 | |||||||||||
Total Communication Services | 236,169,595 | |||||||||||
Consumer Discretionary ― 30.0% | ||||||||||||
Automobiles ― 2.4% | ||||||||||||
General Motors Co. * | 1,100,000 | 57,981,000 | ||||||||||
Diversified Consumer Services ― 2.3% | ||||||||||||
WW International Inc. * | 3,100,000 | 56,575,000 | ||||||||||
Hotels, Restaurants & Leisure ― 3.3% | ||||||||||||
Norwegian Cruise Line Holdings Ltd. * | 3,000,000 | 80,130,000 | ||||||||||
Household Durables ― 4.6% | ||||||||||||
Taylor Morrison Home Corp. * | 2,300,000 | 59,294,000 | ||||||||||
Tupperware Brands Corp. * | 2,400,000 | 50,688,000 | ||||||||||
Total Household Durables | 109,982,000 | |||||||||||
Internet & Direct Marketing Retail ― 13.9% | ||||||||||||
Alibaba Group Holding Ltd. ― ADR * | 525,000 | 77,726,250 | ||||||||||
Amazon.com Inc. *(a) | 30,000 | 98,551,200 | ||||||||||
Farfetch Ltd., Class A Shares *(a) | 1,550,000 | 58,094,000 | ||||||||||
Quotient Technology Inc. * | 1,478,943 | 8,607,448 | ||||||||||
RealReal Inc./The * | 3,300,000 | 43,494,000 | ||||||||||
Stitch Fix Inc., Class A Shares *(a) | 1,200,000 | 47,940,000 | ||||||||||
Total Internet & Direct Marketing Retail | 334,412,898 | |||||||||||
Specialty Retail ― 1.6% | ||||||||||||
Vroom Inc. * | 1,700,000 | 37,519,000 | ||||||||||
Textiles, Apparel & Luxury Goods ― 1.9% | ||||||||||||
Canada Goose Holdings Inc. *(a) | 1,300,000 | 46,371,000 | ||||||||||
Total Consumer Discretionary | 722,970,898 | |||||||||||
Cryptocurrency ― 0.4% | ||||||||||||
Other Financial Investment Activities ― 0.4% | ||||||||||||
Grayscale Bitcoin Trust BTC * | 300,000 | 10,155,000 | ||||||||||
Total Cryptocurrency | 10,155,000 | |||||||||||
Consumer Staples ― 2.5% | ||||||||||||
Personal Products ― 2.5% | ||||||||||||
Herbalife Nutrition Ltd.* | 1,400,000 | 59,332,000 | ||||||||||
Total Consumer Staples | 59,332,000 | |||||||||||
Energy ― 6.1% | ||||||||||||
Oil, Gas & Consumable Fuels ― 6.1% | ||||||||||||
Diamondback Energy Inc. | 825,000 | 78,102,750 | ||||||||||
Energy Transfer LP | 7,100,000 | 68,018,000 | ||||||||||
Total Oil, Gas & Consumable Fuels | 146,120,750 | |||||||||||
Total Energy | 146,120,750 | |||||||||||
Financials ― 15.7% | ||||||||||||
Banks ― 6.3% | ||||||||||||
Bank of America Corp. | 1,400,000 | 59,430,000 | ||||||||||
Citigroup Inc. (a) | 400,000 | 28,072,000 | ||||||||||
JPMorgan Chase & Co. | 400,000 | 65,476,000 | ||||||||||
Total Banks | 152,978,000 | |||||||||||
Consumer Finance ― 6.8% | ||||||||||||
Capital One Financial Corp. | 410,000 | 66,407,700 | ||||||||||
OneMain Holdings Inc. (a) | 1,200,000 | 66,396,000 | ||||||||||
SoFi Technolgoies Inc. * | 1,923,000 | 30,537,240 | ||||||||||
Total Consumer Finance | 163,340,940 | |||||||||||
Security | Shares | Value | ||||||||||
Insurance ― 1.0% | ||||||||||||
MetroMile Inc. *(b) | 6,700,000 | $ | 23,785,000 | |||||||||
Thrifts & Mortgage Finance ― 1.6% | ||||||||||||
Rocket Cos Inc., Class A Shares | 2,400,000 | 38,496,000 | ||||||||||
Total Financials | 378,599,940 | |||||||||||
Health Care ― 15.9% | ||||||||||||
Biotechnology ― 4.3% | ||||||||||||
Karuna Therapeutics Inc. * | 200,000 | 24,466,000 | ||||||||||
Precigen Inc. * | 6,740,909 | 33,637,136 | ||||||||||
PureTech Health Plc * | 9,500,000 | 45,825,081 | ||||||||||
Total Biotechnology | 103,928,216 | |||||||||||
Health Care Providers & Services ― 2.9% | ||||||||||||
Tivity Health Inc. *(b) | 3,000,000 | 69,180,000 | ||||||||||
Pharmaceuticals ― 8.8% | ||||||||||||
Bausch Health Cos Inc. *(a) | 2,500,000 | 69,625,000 | ||||||||||
Green Thumb Industries Inc. * | 2,250,000 | 62,482,500 | ||||||||||
Teva Pharmaceutical Industries Ltd. ― ADR * | 8,100,000 | 78,894,000 | ||||||||||
Total Pharmaceuticals | 211,001,500 | |||||||||||
Total Health Care | 384,109,716 | |||||||||||
Industrials ― 9.2% | ||||||||||||
Airlines ― 2.4% | ||||||||||||
Delta Air Lines Inc. *(a) | 1,350,000 | 57,523,500 | ||||||||||
Commercial Services & Supplies ― 3.4% | ||||||||||||
ADT Inc. (a) | 10,000,000 | 80,900,000 | ||||||||||
Electrical Equipment ― 1.8% | ||||||||||||
Acuity Brands Inc. | 250,000 | 43,342,500 | ||||||||||
Road & Rail ― 1.7% | ||||||||||||
Uber Technologies Inc. * | 900,000 | 40,320,000 | ||||||||||
Total Industrials | 222,086,000 | |||||||||||
Information Technology ― 10.7% | ||||||||||||
Electronic Equipment, Instruments & Components ― 2.2% | ||||||||||||
Vontier Corp. | 1,550,000 | 52,080,000 | ||||||||||
IT Services ― 4.0% | ||||||||||||
DXC Technology Co. *(a) | 2,900,000 | 97,469,000 | ||||||||||
Software ― 4.5% | ||||||||||||
Shapeways Holdings Inc. (d) | 2,725,000 | 18,884,250 | ||||||||||
Splunk Inc. * | 625,000 | 90,443,750 | ||||||||||
Total Software | 109,328,000 | |||||||||||
Total Information Technology | 258,877,000 | |||||||||||
Materials ― 1.1% | ||||||||||||
Chemicals ― 1.1% | ||||||||||||
Chemours Co/The | 900,000 | 26,154,000 | ||||||||||
Total Materials | 26,154,000 | |||||||||||
Total Common Stocks (Cost ― $2,016,731,841) | 2,444,574,900 | |||||||||||
Investment Fund― 0.3% | ||||||||||||
Pangaea One, LP(b)(c)(d) | 1 | 6,992,316 | ||||||||||
Total Investment Fund (Cost ― $28,835,185) | 6,992,316 | |||||||||||
Purchased Options and Warrant ― 6.0% | ||||||||||||
Call Options Purchased ― 4.1% | Maturity Date | Strike Price ($) | Contracts | Notional ($) | ||||||||
Amazon.com Inc. | Jan. 20, 2023 | 3,050.00 | 500 | 152,500,000 | 28,061,250 | |||||||
JD.com Inc | Jan. 20, 2023 | 43,000.00 | 85 | 722,500 | 45,795,000 | |||||||
Uber Technologies Inc. | Jan. 21, 2022 | 32.00 | 19,000 | 60,800,000 | 25,412,500 | |||||||
Total Call Options Purchased (Premiums Paid ― $101,945,176) | 99,268,750 | |||||||||||
Put Options Purchased ― 1.9% | ||||||||||||
iShares 20+ Year Treasury Bond ETF | Jan. 20, 2023 | 41,500.00 | 140 | 1,960,000 | 44,508,750 | |||||||
Total Put Options Purchased (Premiums Paid ― $39,116,584) | 44,508,750 | |||||||||||
Warrant ― 0.0% | Expiration Date | Exercise Price ($) | Shares | |||||||||
ZIOPHARM Oncology Inc.*(c)(d) | Jul. 26, 2024 | 7.00 | 3,787,879 | 1,132,576 | ||||||||
Total Warrant (Cost ― $1,177,758) | 1,132,576 | |||||||||||
Total Purchased Options and Warrant (Cost/Premiums Paid ― $142,239,518) | 144,910,076 | |||||||||||
Total Investments ― 107.7% (Cost ― $2,187,806,544) | $ | 2,596,477,292 | ||||||||||
Liabilities in Excess of Other Assets ― (7.7)% | (186,556,447) | |||||||||||
Total Net Assets ― 100.0% | $ | 2,409,920,845 |
ADR ― American Depositary Receipt | ||||||||||
* Non-income producing security. | ||||||||||
(a) All or a portion of this security is pledged as collateral pursuant to the loan agreement. | ||||||||||
(b) In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or outstanding capital for Pangaea One, LP. At September 30, 2021, the total market value of investments in Affiliated Companies was $99,957,316 and the cost was $140,342,649. (See Note 8). | ||||||||||
(c) Security is valued in good faith in accordance with procedures approved by the Board of Trustees (See Note 2). | ||||||||||
(d) Restricted security (See Note 9). | ||||||||||
The Global Industry Classification Standard (GICS ®) was developed by and/or is the exclusive property of Morgan Stanley International, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC. |
1. | Notes to Schedule of Investments (unaudited) |
Valuation
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). The inputs or methodology used in determining the value of each Fund’s investments are not necessarily an indication of the risk associated with investing in those securities.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad categories as defined below:
Level 1 - Quoted prices in active markets for identical securities. An active market for a security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3 - Significant unobservable inputs, including the Fund's own assumptions in determining fair value of investments.
Investments in securities traded on a national securities exchange are valued at the last reported sales price on the exchange on which the security is principally traded. Securities traded on the NASDAQ exchanges are valued at the NASDAQ Official Closing Price (“NOCP”). These investments are categorized as Level 1 of the fair value hierarchy. Exchange-traded securities for which no sale was reported and NASDAQ securities for which there is no NOCP are valued at the mean of the most recent bid and ask prices quoted. Exchange traded options are valued at the composite mean price, which calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is principally traded. These investments are categorized as Level 2 of the fair value hierarchy. Pricing services may use various valuation methodologies, including matrix pricing and other analytical models as well as market transactions and dealer quotations. Long-term fixed income securities are valued using prices provided by an independent pricing service approved by the Board. Securities for which market quotations are not readily available are valued at their estimated fair value as determined in good faith by Miller Value Partners, LLC under procedures established by and under the general supervision and responsibility of the Board.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the fair values of the Fund’s consolidated investments in each category investment type as of September 30, 2021:
ASSETS
Description | Quoted Prices (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Investments (a) | ||||||||||||||||
Common Stocks | $ | 2,425,690,650 | $ | - | $ | 18,884,250 | $ | 2,444,574,900 | ||||||||
Investment Fund | - | - | 6,992,316 | 6,992,316 | ||||||||||||
Purchased Options and Warrant | - | 143,777,500 | 1,132,576 | 144,910,076 | ||||||||||||
Total Investments | $ | 2,425,690,650 | $ | 143,777,500 | $ | 27,009,142 | $ | 2,596,477,292 |
(a) See Schedule of Investments for additional detailed categorizations.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
Investment Securities | Common Stock | Investment Fund | Warrant | |||||||||
Balance as of December 31, 2020 | $ | - | $ | 10,096,002 | $ | 1,846,591 | ||||||
Realized gain (loss) | - | 807,755 | - | |||||||||
Purchases | 27,250,000 | - | - | |||||||||
Sales/Partnership distributions | - | (5,966,559 | ) | - | ||||||||
Change in unrealized appreciation (depreciation) | (8,365,750 | ) | 2,055,118 | (714,015 | ) | |||||||
Balance as of September 30, 2021: | $ | 18,884,250 | $ | 6,992,316 | $ | 1,132,576 | ||||||
Change in unrealized appreciation (depreciation) for Level 3 securities held at September 30, 2021 | (8,365,750 | ) | 2,055,118 | (714,015 | ) |
The following table summarizes the valuation techniques and unobservable inputs used to determine the fair value of Level 3 investments.
Fair Value at September 30, 2021 | Valuation Technique(s) | Unobservable Input(s) | Range / Weighted Average | Impact to Valuation from an Increase in Input * | |
Common Stock | $18,884,250 | Market | Liquidity Discount | 10% | Decrease |
Limited Partnership Interests | $6,992,316 | NAV of Limited Partnership Interest | Liquidity Discount | 25% | Decrease |
Warrant | $1,132,576 | Black-Scholes Model | Liquidity Discount | 35% | Decrease |
* | This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in isolation could result in significantly higher or lower fair value measurements. |
2. Transactions with affiliated companies
An “Affiliated Company”, as defined in the 1940 Act, includes a company in which the Fund owns 5% or more of the company’s outstanding voting securities at any time during the period. The following transactions were effected in shares of such companies for the period ended September 30, 2021:
Flexion Therapeutics Inc. 1 | Metromile Inc. 2 | Pangaea One, LP | ||||||||||
Value at December 31, 2020 | $ | 36,928,000 | $ | - | $ | 10,096,002 | ||||||
Purchases | - | 55,388,413 | - | |||||||||
Sales / Partnership Distributions | (27,051,165 | ) | - | (5,966,559 | ) | |||||||
Change in Unrealized Gain (Loss) | 17,636,293 | (31,603,413 | ) | 2,055,118 | ||||||||
Realized Gain (Loss) on Sales / Distributions | (27,513,128 | ) | - | 807,755 | ||||||||
Value at September 30, 2021 | $ | - | $ | 23,785,000 | $ | 6,992,316 | ||||||
Amortization, Dividend, Interest Income | - | - | 483,231 |
Quotient Technology Inc. 1 | Tivity Health Inc. 2 | Ziopharm Oncology Inc. 1 | Total | |||||||||||||
Value at December 31, 2020 | $ | 46,158,000 | $ | 45,057,000 | $ | 25,534,591 | $ | 163,773,593 | ||||||||
Purchases | - | 16,116,495 | - | 71,504,908 | ||||||||||||
Sales / Partnership Distributions | (28,522,800 | ) | - | (20,080,856 | ) | (81,621,380 | ) | |||||||||
Change in Unrealized Gain (Loss) | 5,683,588 | 8,006,505 | 10,363,772 | 12,141,863 | ||||||||||||
Realized Gain (Loss) on Sales / Distributions | (14,711,340 | ) | - | (14,684,931 | ) | (56,101,644 | ) | |||||||||
Value at September 30, 2021 | $ | 8,607,448 | $ | 69,180,000 | $ | 1,132,576 | $ | 109,697,340 | ||||||||
Amortization, Dividend, Interest Income | - | - | - | 483,231 |
1 Flexion Therapeutics Inc., Quotient Technology Inc. and Ziopharm common stocks were affiliated companies at December 31, 2020 and were no longer affiliated companies at September 30, 2021.
2 Metromile Inc. and Tivity Health Inc. were not affiliated companies at December 31, 2020 and became affiliated companies at September 30, 2021.
3. Restricted securities
The following Fund investments are restricted as to resale and, in the absence of readily ascertainable market values, are valued in good faith in accordance with procedures approved by the Board of Trustees.
Security | Cost | Fair Value at September 30, 2021 | Percent of Net Assets | Open Commitments |
Galileo Acquisition Corp.1 | $27,250,000 | $18,884,250 | 0.8% | N/A |
Pangaea One, LP2 | $28,835,185 | $6,992,316 | 0.3% | $729,3653 |
Ziopharm Oncology Inc. (Warrant)4 | $1,177,758 | $1,132,576 | 0.0%5 | N/A |
1Acquisition date was 9/21.
2Acquisition dates were 5/08, 8/08, 10/08, 12/08, 2/09, 5/09, 8/09, 11/09, 3/10, 7/10, 1/11, 2/11, 4/11, 8/11, 10/11, 1/12,4/12, 5/12, 6/12, 8/12, 12/12, 5/13, 6/13, 9/13, 3/14, 8/14 and 10/14.
3 In the normal course of operations, the Fund makes commitments to invest in businesses. At September 30, 2021, the Fund had open commitment of $729,365.
4 Acquisition date was 7/19.
5 Percentage represents less than 0.05%