ICONICAL INVESTMENTS FULL

There has been a push from hedge fund Alta Fox to spin out Wizards of the Coast into a standalone business, which they believe could be a huge unlock of value for shareholders, pushing the stock to $200/share up from ~$84/share. With its maniacal fan base, strong network effects from MTG and D&D, and upcoming content releases, we believe there is a long runway for growth in this segment that is underappreciated by other investors. In our view, this is the sleeping giant within Hasbro’s business, and the segment that offers the greatest upside potential.Ĭlients may be familiar with Dungeons and Dragons or Magic: The Gathering as games played by mathletes in high school but many players have remained loyal to D&D, spending consistently on paper and online trading cards. Wizards of the Coast (WOTC), a builder of role playing, trading card, and digital games was acquired by Hasbro in 1999. The first bucket includes most of the household toy and game brands mentioned above while the entertainment segment includes franchises like Peppa Pig. Hasbro reports results across three major segments - consumer products, entertainment, and Wizards of the Coast. In evaluating the investment opportunity in Hasbro, however, it wasn’t this legacy portfolio of toys that got us excited, but the opportunity we believe exists in the company’s role-playing and entertainment businesses. Monopoly, Play Doh, Battleship, and Twister are just a few of childhood favorites owned by Hasbro, with these franchises proving to have lasting influence over the years.

ICONICAL INVESTMENTS FULL

Hasbro (HAS) has been selling toys, games, and entertainment since the 1960s, amassing an unparalleled portfolio of ~1,500 brands full of household names. Also, as a part of our broader risk-on gameplan, we’ve also increased our position in Moody’s Corporation (MCO). We’ve initiated an investment in Hasbro (HAS), the iconic toy, game and entertainment conglomerate with upside optionality for clients in our Opportunities portfolio.

Iconical investments