Weitz Partners III Opportunity Fund on Capital One Financial Corporation
Thesis
Weitz initiated Capital One after its acquisition of Discover, viewing the transaction as the next step in the evolution of a business that has grown from credit cards into a broader consumer banking franchise. Owning and integrating a payment network can create economic benefits and reduce Capital One's reliance on Visa and Mastercard. The combined company also gains a stronger strategic position from which to compete with American Express, supporting higher earnings potential.
“We are intrigued by the combined businesses and their heightened earnings potential.”