Miller Value Partners (Bill Miller) discloses updated portfolio positions in 13F filing: New UNFI BBW positions
Highlights from Q2 2024 filing as compared to Q1 2024 (all amounts are approximate):
- New positions in: UNFI (0.2 mln shares), BBW (70K)
- Increased positions in: GTN (to 0.8 mln shares from 0.5 mln shares), LNC (to 0.3 mln from 0.2 mln), UGI (to 0.24 mln from 0.17 mln), NBR (to 104K from 70K), CNDT (to 0.75 mln from 0.72 mln), CHRD (to 45K from 35K)
- Closed positions in: GEO (from 145K shares)
- Decreased positions in: GCI (to 1.5 mln shares from 2.5 mln shares), TPC (to 87K from 215K), PBI (to 31K from 41K), JXN (to 146K from 153K), AXL (to 192K from 198K), OMF (to 149K from 153K)
Baupost Group (Seth Klarman) discloses updated portfolio positions in 13F filing: New WSC SOLV CPRI HUM VRSN positions, Exited ATUS WBD SOUN
Highlights from Q2 2024 filing as compared to Q1 2024 (all amounts are approximate):
- New positions in: WSC (2.47 mln shares), SOLV (1.82 mln), CPRI (1 mln), HUM (0.42 mln), VRSN (0.11 mln)
- Increased positions in: CLVT (to 38.93 mln shares from 30.6 mln shares), HLF (to 5.12 mln from 2.24 mln), FTRE (to 3.14 mln from 0.3 mln), GDS (to 4.25 mln from 2.6 mln), CRH (to 4.23 mln from 2.71 mln), WCC (to 0.8 mln from 0.21 mln), JAZZ (to 1.27 mln from 0.83 mln), WTW (to 1.65 mln from 1.56 mln), EXP (to 0.34 mln from 0.26 mln)
- Maintained positions in: LBTYK (42.31 mln shares)
- Closed positions in: ATUS (from 4.77 mln shares), WBD (from 3.71 mln), SOUN (from 1.13 mln)
- Decreased positions in: LSXMK (to 1.06 mln shares from 4.35 mln shares), TBPH (to 4.2 mln from 6.59 mln), LSXMA (to 0.6 mln from 2.68 mln), FIS (to 3.51 mln from 5.58 mln), GOOG (to 1.07 mln from 2.96 mln), VSAT (to 13.76 mln from 15.03 mln)
Closing Stock Market Summary
The stock market rallied today, leaving all the major indices higher by at least 1.0%.
Advancers led decliners by a 4-to-1 margin at the NYSE and by a nearly 3-to-1 margin at the Nasdaq. The positive bias followed pleasing Producer Price Index data for July.
Total PPI jumped 0.1% month-over-month in July (Briefing.com consensus 0.1%) while core PPI, which excludes food and energy, was flat (Briefing.com consensus 0.2%). The monthly figures left total PPI up 2.2% year-over-year, versus 2.7% in June, and core PPI up 2.4%, versus 2.9% in June.
The welcome disinflation in the report contributed to optimism around the Fed's rate cut path, which sent yields lower and boosted equities. The upside bias may continue tomorrow if the release of the July Consumer Price Index at 8:30 ET corroborates the market's view.
Treasury yields were already lower following some weak new loan data out of China and some weak economic sentiment data out of the eurozone and dropped further in response to the PPI data. The 10-yr note yield fell six basis points to 3.85% and the 2-yr note yield, which is most sensitive to changes in the fed funds rate, dropped eight basis points to 3.94%.
With today's move higher, the S&P 500 closed above 5,400 for the first time since August 1, just before the jobs report that precipitated last Monday's sharp selloff. Just about everything participated in upside moves, leaving ten of the 11 S&P 500 sectors higher.
The heavily-weighted information technology (+3.0%), consumer discretionary (+2.4%), communication services (+1.5%), and health care (+1.2%) sectors led the pack. Meanwhile, the energy sector logged a 1.0% decline amid falling commodity prices. WTI crude oil futures settled 1.9% lower at $78.37/bbl and natural gas futures settled 1.4% lower at $2.16/mmbtu.
Dow component Home Depot (HD 350.07, +4.26, +1.2%) closed with a solid gain after trading down as much as 1.9% in response to below-consensus guidance.
Fellow discretionary-related name Starbucks (SBUX 95.90, +18.87, +24.5%) was the biggest advancer in the S&P 500, surging on the news that CEO Laxman Narasimhan has stepped down and will be replaced by Chipotle (CMG 51.68, -4.19, -7.5%) CEO Brian Niccol.
- Nasdaq Composite:+14.5% YTD
- S&P 500: +13.9% YTD
- S&P Midcap 400: +6.2% YTD
- Dow Jones Industrial Average: +5.5% YTD
- Russell 2000: +3.4% YTD
Reviewing today's economic data:
- July NFIB Small Business Optimism 93.7; Prior 91.5
- July Core PPI 0.0% (consensus 0.2%); Prior was revised to 0.3% from 0.4%, July PPI 0.1% (consensus 0.1%); Prior 0.2%
- The key takeaway from the report is the disinflation trend in total and core PPI, as that is moving in a necessary direction to drive a rate cut by the Fed.
Wednesday's economic lineup features:
- 7:00 ET: Weekly MBA Mortgage Index (prior 6.9%)
- 8:30 ET: July CPI (consensus 0.2%; prior -0.1%) and Core CPI (consensus 0.2%; prior 0.1%)
- 10:30 ET: Weekly crude oil inventories (prior -3.73 mln)
‘Emily in Paris’ Returns for a Season of Revenge Style
Revenge is a dish best served wearing Miu Miu, Harris Reed’s Nina Ricci, Philosophy Di Lorenzo Serafini and Jacquemus, according to costume designer Marylin Fitoussi.

Audrey Hepburn in "Charade" was one of the inspirations for "Emily in Paris" season four.
Getty Images/Netflix
LONDON — Princess Diana paved the way for revenge dressing in 1994 — now 30 years later, Lily Collins as Emily Cooper in “Emily in Paris” is following the same path.
Costume designer Marylin Fitoussi is calling season four of the Netflix series the revenge-style season.
Emily is stepping into new territories this season — part one airs Thursday — with salutes to fashion’s greatest: Twiggy, Biba, the Swinging ’60s, Audrey Hepburn, Françoise Hardy, Truman Capote’s Black and White Ball and more.
Fitoussi has been begging the show’s creator Darren Star to put on a ball since season one as “it’s very much part of the French DNA,” she said in an interview, wearing a vintage Saint Laurent chiffon shirt printed with red lips and a black head-wrap. (It’s hard to tell if she’s channeling Elsa Schiaparelli or a clairvoyant with a taste for the finer things in life.)

Emily Cooper in “Emily in Paris” takes on Truman Capote’s Black and White Ball in a Harris Reed for Nina Ricci creation.
When a masquerade ball was mentioned in the script, she quickly jumped to suggest Capote’s famous ball from 1966 that took place at The Plaza hotel in New York City as a reference.
The costume designer contacted Nina Ricci’s British American creative director Harris Reed for the occasion. He designed three outfits and Fitoussi together with Collins decided on a thick striped black and white jumpsuit with an attachable ball skirt that also paid tribute to Audrey Hepburn in “My Fair Lady.”
The English American actor has a resemblance to Hepburn with her small features and
distinct dark eyebrows.
When Emily goes skiing in one of the episodes, Fitoussi had the idea to recreate Hepburn’s famous winter look in the 1963 film “Charade,” where she’s wrapped up in fur with a pair of oversize Pierre Marly sunglasses, which are now on display at the Musée de la Lunette in Morez, France.
The costume designer was able to obtain the original sunglasses worn by Hepburn.
“When Lily tried them on, we were crying, shouting and having goosebumps. Every season we have a tribute to Audrey Hepburn, it’s part of the game now,” said Fitoussi, adding that Pierre Marly Opticien reproduced the sunglasses for the series and that she used faux fur for the scene.
As Emily steps into more of a French sartorial state of mind in season four, that’s not to say she’s parting ways with her bright and printclashing wardrobe — those pieces are very much still there, and she’s wearing them to the office rather than on the cobbled streets of Paris.
“Emily is much more elevated, but she’s still unapologetic and a fish out of water. She’s showing the [true hidden gems] in her closet now,” said Fitoussi, revealing that her closet this season includes Philosophy Di Lorenzo Serafini, Jacquemus, Marni, Ozias, Miu Miu, La DoubleJ, Boss and more.

Emily Cooper wearing Philosophy Di Lorenzo Serafini and Jacquemus in “Emily in Paris.”
COURTESY OF NETFLIX
Emily’s best friend in Paris, Mindy Chen, played by Ashley Park, has taken not just a page out of her friend’s sartorial library, but perhaps an entire volume.
She wears an eccentric selection of pieces: a graffitied Philipp Plein miniskirt and cropped blazer embellished with diamantes styled with pink sailor hats; a turquoise Magda Butrym jumpsuit printed with pink roses worn with a matching fluffy hat; a vintage Thierry Mugler cobalt blue dress from 1996 accessorized with an Andrew Gn belt made of an assortment of blue stones, and a mini Germanier hobo bag decorated in sequins and beads in different shades of blue and more.
“Fashion is here to be enjoyed and fashion is fun. [Park] has the most beautiful legs that I’ve ever seen and she’s so confident, that you can dress her in sequins and choking items at 10 a.m. She doesn’t question anything [we put on her],” Fitoussi explained.

Mindy Chen wearing Magda Butrym in “Emily in Paris.”
COURTESY OF NETFLIX
The only time she’s ever gotten pushback is when she put Park in a plain white T-shirt for a music rehearsal scene.
Park told Fitoussi that she “’didn’t wake up to wear a plain T-shirt. I want something with treasures,’” she recalled.
As Emily’s sense of style matures, her counterparts are also tapping into new sides of their characters.
According to Fitoussi, Philippine Leroy-Beaulieu’s sharp and witty character, Sylvie, discovers a secret style to herself in part two of the series, which airs on Sept. 12.

Philippine Leroy-Beaulieu as Sylvie in “Emily in Paris.
STEPHANIE BRANCHU/NETFLIX
In Paris, her style speaks more to brands such as Saint Laurent, Charlotte Chesnais and Tod’s, but in Rome, even Sylvie gets flamboyant by dabbling in Emilio Pucci and Gucci.
Fitoussi feels strongly about Leroy-Beaulieu and her on screen character. “A dress is nothing without the woman who is living in it. Beautiful clothes can stay as beautiful clothes if you have the energy, the power and the sexiness to wear it. She owns the clothes she wears,” she said.
She shares that Leroy-Beaulieu often arrives at fittings on a bicycle with a helmet in hand wearing a white T-shirt from the French brand Majestic Filatures, but within five minutes she’s in stiletto heels “walking like a goddess. She blows my mind by how easily she can switch from a character to another one.”
Fitoussi is as involved in the main character’s wardrobes as she is with those in a supporting role.

Bruno Gouery as Luc in “Emily in Paris.”
COURTESY OF NETFLIX
This season all of the tailored outfits for Samuel Arnold’s coworker role as Julian were by Walter Van Beirendonck. The Belgian fashion designer loaned out many pieces from his own personal archive for the series.
Even the actor Bruno Gouery, who plays the role of Luc, the quirky office coworker, has started getting interested in what his character wears, whereas before he was indifferent to fashion, Fitoussi said.
The cravat has become Luc’s signature accessory to go with his softly textured officewear and three piece suits.
“He even asks for [style] advice for his own personal life now,” Fitoussi said.

Emily, Luc, Julien and Sylvie in “Emily in Paris.”
COURTESY OF NETFLIX
The costume designer admits that dressing Lucas Bravo’s chef character Gabriel is a bit trickier because “he’s so beautiful, but we need him to stay as the guy next door.”
She said she fears dressing him in designer pieces will just make him look like a model, so instead she puts him in French brands that are focused on minimalism and sustainability.
Fitoussi is not short of fashion on the show. She wants to use her platform to represent designers from every corner of the world.
This season she’s sourced from Korean designer Christopher Raxxy; Vietnamese brand Sixdo; Indian designers Manish Arora and Gaurav Gupta; Moldovan designer Fidan Novruzova and more.

“Emily in Paris” costume designer Marylin Fitoussi.
Florent Leroux
“If we get a season five, I want an even larger circle of designers. I’m still missing designers from Mexico, Chile and Peru. It’s a privilege to give these young designers a place for their work because it triggers their careers,” Fitoussi said.
Born in the South of France, the costume designer knew the profession she wanted to go into from the age of 12, when her family got their first television.
“Every New Year’s Eve, the French channels would televise a show from the Moulin Rouge with these beautiful creatures almost naked with sequins, feathers, giant earrings and jewels. I said, ‘I want to live in this world, not here, but there where those creatures belong,’” Fitoussi remembers.
What Warner Bros. Discovery Haters Are Getting Wrong
The Takeaway
The share price of Warner Bros. Discovery has sunk to new lows of below $7 in recent days, 73% down from two years ago. That seems to be an overreaction: It’s not difficult to calculate a value of $15 a share, given the value of the different pieces of the company.
If there’s one sector of the stock market that is repellent to investors right now, it’s traditional entertainment. And if there’s one company that sums up how out of favor the sector is, it’s Warner Bros. Discovery.
The owner of HBO, Warner Bros. and the Max streaming service—once one of the premier entertainment businesses in the world—has seen its stock collapse to below $7 in recent days, down 73% in two years. Including its debt, WBD has a total enterprise value of just $54 billion, one-fifth of Netflix’s value.
Investors often go overboard, whether on driving stocks too high or selling them too low, and it looks like the current stock price is a rock-bottom valuation that doesn’t reflect the underlying worth of this company’s jewel, Warner Bros. film studio, or the potential of its Max streaming service. Applying what seem to be very conservative guesstimates to the value of the company’s businesses suggests a valuation of about $74 billion, which translates to a per-share price of about $15.
To be sure, everything appears to have gone wrong for Warner lately—most obviously the TNT cable channel’s loss of rights to NBA games—and it may be a year or two before investors recognize the potential value in the stock. On the current path, the bull case for WBD rests on its prospects for expanding Max overseas, with several major markets still to launch, which will help it become solidly profitable.
WBD CEO David Zaslav could do himself a favor by correcting some of his missteps: He has focused way too much on cost cutting, to the detriment of investing in new programming and marketing. Investors didn’t appear to care that last year he managed to turn WBD’s streaming segment profitable, at least temporarily, even as rivals such as Peacock continued to bleed massive amounts of red ink.
Changing the name of the Max streaming service to reclaim the HBO brand name might also help, reversing the blunder the company made when it dropped its best-known brand from the service.
Otherwise, there’s no getting around the reality that things will be rough for the next year or so, at least until WBD’s cable channels absorb the damage done by losing the NBA rights, which goes into effect in the fall of next year. The NBA is a significant driver of WBD’s cable advertising revenues of $8.3 billion. The NBA rights loss will deprive TNT of one of its most important sports franchises.
Value Breakdown
That loss will only aggravate a long-term decline in the cable channels business, which accounts for the vast majority of WBD’s profits. Those channels are slowly dying as people cut the cable cord or never subscribe in the first place. WBD said in a securities filing last week it was estimating the business would decline 3% a year for the long term. That could be too low a number, given the impact that the loss of the NBA rights might have.
The cable unit’s revenue last year was about $21 billion, translating to earnings before interest, taxes, depreciation and amortization of about $9 billion. For the first half of 2024, however, revenue has fallen 8%, dragging Ebitda down by about the same amount. Valuing the channels is difficult, given the uncertainty of knowing when they will stabilize.
It’s reasonable, though, to assume that some proportion of people subscribing to cable will stick with it. Let’s assume a fair multiple to put on the cable unit is 0.5 times forward revenue, or about $9 billion, using Guggenheim Partners’ projection for the company’s 2025 results.
WBD’s crown jewel asset is the Warner Bros. film and TV studio, which for years has had a leading box office market share, as well as one of the biggest film and TV libraries. The libraries are a major source of licensing revenue—and of programming for WBD’s own TV outlets, such as Max.
The studio would be strategically valuable to lots of companies, such as Apple and Amazon, both to help their video-streaming efforts with new productions and to provide a source of older programming. What’s it worth? One way to measure that is to apply a multiple of profits as measured by Ebitda.
Applying a multiple of 12.2 times expected 2025 Ebitda—where Lionsgate Studios is now trading, according to S&P Global Market Intelligence—puts a value of $30 billion on the studio.
The biggest question mark in valuation surrounds WBD’s streaming segment, including its Max flagship and smaller services like Discovery+. One way of calculating this is to compare Max to Hulu, Disney’s U.S.-only streaming service, which had 46.7 million subscribers as of June 30 (plus a few million more paying for a cable-like service). Hulu has been valued at between $27.5 billion and $42 billion in talks around Disney’s recent buyout of a 33% stake held by Comcast.
In that deal, Disney bought the Comcast stake at a minimum valuation on the whole service of $27.5 billion but with a final price still to be agreed upon. Disney has said it may have to pay up to $5 billion more, implying that the maximum value put on Hulu in the talks was $42 billion. (For more on Hulu’s value, see our piece from late last year).
Let’s assume Disney and Comcast settle on a $35 billion value for Hulu. That gives us a benchmark for WBD streaming, which claimed 103 million subscribers internationally at June 30, with about half of those in the U.S.
Hulu Versus Max
Unfortunately, extrapolating from Hulu’s value to WBD streaming’s value isn’t simple. For one thing, some portion of Max’s subscribers are cable subscribers to HBO, who automatically get Max as part of their HBO subscription. That arguably diminishes their value.
These cable subscribers accounted for two-thirds of Max’s U.S. subscriber base two years ago, immediately before Warner and Discovery merged to create WBD. The merger put Max and Discovery+ together, making it harder to figure out how the Max service is doing. What we do know is that the number of cable subscribers mixed into the Max customer group has been shrinking, thanks to cord cutting. That’s likely one reason why WBD streaming’s overall subscriber count has grown only 12% in two years.
Including the HBO cable subscribers, Max likely has about as many subscribers in the U.S. as Hulu. Max subscribers don’t appear to be actually watching the service as much, though: Nielsen data for June showed that Max has less than half Hulu’s share of the U.S. streaming audience.
Another issue is that while Hulu has been profitable for a while, WBD’s streaming segment has toggled between breaking even and losing money lately. That’s despite the fact that the U.S. business has an average revenue per subscriber close to Hulu’s.
Part of the problem is WBD's international streaming business, where the average revenue per subscriber overseas is under $4, about a third what it is in the U.S. That partly reflects the fact that Discovery+ is sold at a low price in other countries, dragging down the average in some key overseas markets, such as Britain.
Warner’s previous management also sold the HBO Max streaming service (the forerunner to Max) at cut-priced deals overseas, in some cases offering subscribers a lifetime discount or giving distribution partners a big cut of the revenue.
WBD should be able to improve its international economics longer term, by replacing those deals. The company has lately launched Max in Latin America and parts of Europe, including with tiers that carry advertising. And after 2025 it will be able to launch Max in Britain, Italy and Germany, where its programming is now offered through previously arranged deals with satellite operators.
That expansion should lift WBD’s streaming revenue overseas, potentially increasing its subscriber count internationally as well. Given that potential, it seems reasonable to suggest WBD’s streaming segment should be worth at least as much as Hulu.
Let’s put a $35 billion value on WBD’s streaming business. Including the studio and the cable channels, a conservative valuation on WBD would be $74 billion. Deducting WBD’s debt of about $37 billion leaves an equity value of $37 billion, or $15 a share.
Few investors are ready to hear this kind of argument right now. But there’s a good chance that in two or three years’ time, we’ll look back at WBD’s stock price and say it was a raging buy at current levels.
