Robert Deaton presented his in-depth investment thesis on Blackhawk Network Holdings (NASDAQ: HAWK) at Wide-Moat Investing Summit 2014.
Blackhawk Network Holdings: Pioneer in the prepaid gift space, providing gift cards, prepaid digital products, prepaid telecom products and financial service products via a global distribution network (partners with the best and biggest brands and retailers). Sources of moat: 1) proprietary platform for activation, processing and settlement; 2) network of 400 distribution partners with 180,000 retail locations in 21 countries combined with over 600 content providers; and 3) processed 242 million transactions with a load value of $10 billion in 2013. Fortress balance sheet with $135 million of cash and no debt. High returns on invested capital with low capital intensity. Shareholder oriented management team focused on widening the company's moat into digital transactions and to grow the international business. Attractive valuation at a ~7% forward FCF yield and long runway to grow free cash flow at double digit rates annually.
About the instructor:
Robert Deaton has enjoyed a long and successful investment management career as a money manager and private investor. Currently, Robert is managing member of Fat Pitch Capital, an investment partnership. Robert was a founding member of Bennett Lawrence a NY-based investment fund, which had peak assets of over $2 billion. Robert was chief investment officer of Cambium Capital and member, and is past managing member of Deaton Partnership. Robert holds an AB from Davidson College, an MBA from Vanderbilt University and is a CFA charter holder. Robert is an active member of numerous community organizations. He is a board member of the Presbyterian Healthcare Foundation (executive committee), the Physicians Impact Fund and the Vanderbilt University Owen School of Management Alumni Board. He is a member of the Board of Trustees at The Fletcher School (executive committee, treasurer-elect). He is a past two-term member of both the Board of Visitors at Davidson College and the Board of the Davidson Athletic Foundation. Robert is married, with two children.
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