15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers

4. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 89

Short Interest:  5.94%

Capital One Financial Corporation is a financial services holding company. It provides different financial products and services. The company generates its revenue through Consumer Banking, Credit Card, and Commercial Banking divisions.

The US automotive industry will likely encounter significant challenges due to President Trump’s recently announced tariffs on imported vehicles and parts. The auto tariff imposition is likely to affect consumers through increased vehicle prices, reduced purchasing power, and increased financial pressure. It will lead to reduced consumer spending, negatively affecting the company’s revenue.

Capital One’s CEO, Richard Fairbank, recently commented:

“If the tariff wars sort of really continue on, the auto business is I think might be really quite impacted because the immediate effect would be an almost certain increase in vehicle prices. And that would have sort of mixed effects on auto credit.”

“But with production costs rising, supply chain costs rising, you could just really end up with vehicle value disruption in the business.”

The firm received an upgrade from BTIG with an increased recommendation from Neutral to Buy and a price target of $208. The upgrade was based on the potential for the company’s acquisition of Discover Financial. The high short interest in the stock is probably a result of the merger arbitrage bets by hedge funds.