Black Knight, Inc.
Thesis
Black Knight has a near monopolistic position in mortgage servicing software with strong pricing power and low churn. The company benefits from a regulatory environment that increases compliance costs for competitors, enhancing its competitive advantage.
Did it work?
The thesis is a qualitative structural-moat argument (monopoly position, pricing power, low churn) with no stated price target, horizon, or specific catalyst, and no price performance data is available to test it. Without knowing when the pitch was made or how the stock performed, there is no way to confirm whether the competitive-advantage thesis translated into returns or was invalidated. Notably, Black Knight was ultimately acquired by Intercontinental Exchange (deal announced 2022, closed 2023), which could be consistent with the value of its franchise, but without the pitch date or price data this cannot be tied to the thesis's outcome.