Weitz Partners III Opportunity Fund on Capital One Financial Corporation
Thesis
Capital One has evolved beyond its core credit-card business into a broad consumer banking franchise. Its acquisition of Discover adds the economic benefits of integrating its own payment network and reduces reliance on Visa and Mastercard. The combination also positions Capital One to compete more directly with American Express, and the fund sees heightened earnings potential from the combined businesses.
“We are intrigued by the combined businesses and their heightened earnings potential.”