Blackhawk Network Holdings Inc (HAWK): P2 Capital Partners Pushes Activist Stake Over 5%, Will Push for Change

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Claus Moller‘s P2 Capital Partners recently filed a Form 13D with the Securities and Exchange Commission, in which it reported raising its stake in Blackhawk Network Holdings Inc (NASDAQ:HAWK) to 3 million common shares, which represent 5.3% of the float. As per its 13F filing for the reporting period of June 30, the fund held 2.30 million shares. The latest filing also revealed that the acquisition of 700,000 shares was for the purpose of obtaining a significant equity position in Blackhawk Network so that the fund may start negotiations with the company’s management in order to initiate changes that would result in better shareholder value.

Blackhawk Network Holdings is a company that offers various prepaid products and professional payment services. Since the beginning of the year, the company’s stock has dropped by 18.34%. Recently, Blackhawk Network acquired Grass Roots Group Holdings, a company that offers professional employee engagement and customer engagement services. In its financial report for the third quarter of 2016, the company disclosed revenue of $361.6 million, and a diluted loss per share of $0.09, compared to revenue of $352.7 million, and a loss per share of $0.07 for the corresponding quarter a year earlier. Earlier this month, Jefferies Group reiterated its ‘Buy’ rating on Blackhawk Network Holdings’ stock, with a price target of $43, while Wedbush reiterated its ‘Neutral’ rating, with a price target of $30. Lastly, Bank of America downgraded its rating on Blackhawk to ‘Neutral’ from ‘Buy’ and lowered its price target on it to $34 from $41.

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Of the 749 hedge funds followed by Insider Monkey that filed 13Fs for the June 30 reporting period, 22 were bullish on Blackhawk Network Holdings Inc (NASDAQ:HAWK) at the end of June, down from 35 investors at the end of March. Some of the investors that were long the stock included Alok Agrawal’s Bloom Tree Partners, which held a position worth $56.29 million, Lee Hicks and Jan Koerner’s Park Presidio Capital, with a position valued at $25.86 million, Jim Simons’ Renaissance Technologies, Michael Barnes and Arif Inayatullah’s Tricadia Capital Management, and David Thomas’ Atalan Capital.

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Among the smart money managers who lost enthusiasm for investing in Blackhawk Network Holdings Inc (NASDAQ:HAWK) and sold off their positions were Israel Englander’s Millennium Management, which said goodbye to a position valued at $20.26 million at the end of March, Glenn Russell Dubin’s Highbridge Capital Management, which dropped its position worth $6.74 million, Peter Rathjens, Bruce Clarke and John Campbel’s Arrowstreet Capital, Neil Chriss’ Hutchin Hill Capital, and Mike Vranos’ Ellington.

You can access the original SEC filing by clicking here.

Ownership Summary Table
Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
P2 Capital Partners, LLC  0 3,000,000 0 3,000,000 3,000,000 5.3%
P2 Capital Master Fund I, L.P.  0 1,121,449 0 1,121,449 1,121,449 2.0%
P2 Capital Master Fund VI, L.P.  0 1,428,364 0 1,428,364 1,428,364 2.5%
P2 Capital Master Fund XII, L.P.  0 450,187 0 450,187 450,187 0.8%
Claus Moller 0 3,000,000 0 3,000,000 3,000,000 5.3%

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Page 1 of 10 – SEC Filing









Washington, D.C. 20549









Under the Securities Exchange Act of 1934

Blackhawk Network Holdings, Inc.

(Name of Issuer)


Common Stock

(Title of Class of Securities)



(CUSIP Number)


Jason Carri

P2 Capital Partners, LLC

590 Madison Avenue

25th Floor

New York, NY 10022

(212) 508-5500

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications


October 7, 2016

(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following boxo


Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule including all exhibits.  See Rule 13d-7(b) for other parties to whom copies are to be sent.


* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.


The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


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