Aristotle Capital Management, LLC, an investment management firm, released its “Global Equity Strategy” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. During the quarter, the global equity market surged, with the MSCI ACWI Index rising 11.53%. Aristotle Capital Global Equity Strategy returned 9.58% gross of fees (9.45% net of fees) in the second quarter, underperforming the MSCI ACWI Index’s 11.53% return and the MSCI World Index’s 11.47% return. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.
In its second-quarter 2025 investor letter, Aristotle Capital Global Equity Strategy highlighted stocks such as Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is a financial services holding company for Capital One, National Association that offers various financial products and services. The one-month return of Capital One Financial Corporation (NYSE:COF) was -6.08%, and its shares gained 52.42% of their value over the last 52 weeks. On August 1, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $207.47 per share, with a market capitalization of $132.68 billion.
Aristotle Capital Global Equity Strategy stated the following regarding Capital One Financial Corporation (NYSE:COF) in its second quarter 2025 investor letter:
“Founded in 1988 and headquartered in McLean, Virginia, Capital One Financial Corporation (NYSE:COF) is one of the largest credit card issuers in the U.S. The company was spun out of Signet Financial in 1995 under the leadership of founder and current Chairman and CEO Richard Fairbank. Over the past three decades, Capital One has evolved from a monoline credit card lender into a diversified financial services firm offering a broad range of consumer and commercial banking products.
In 2025, Capital One completed its acquisition of Discover, becoming one of the only major U.S. banks to own and operate a credit card network. This should position the company to enhance its profitability by reducing its reliance on third-party networks (i.e., Visa and Mastercard) and reduce earnings volatility as fee-based revenue increases. The deal also advances Capital One’s efforts to attract high-spend, premium-tier customers. Products like Venture X—the firm’s premium travel rewards card—stand to benefit from the integration of Discover’s transaction data with Capital One’s advanced analytics capabilities. This combination enables more personalized offers, deeper customer engagement and targeted cross-selling across lending and deposit products, reinforcing a cycle of data-driven growth…” (Click here to read the full text)
A smiling face of a customer as they make a deposit at this company’s branch.
Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the first quarter, which was 89 in the previous quarter. While we acknowledge the risk and potential of Capital One Financial Corporation (NYSE:COF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Capital One Financial Corporation (NYSE:COF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Capital One Financial Corporation (NYSE:COF) and shared the list of cheap value stocks to buy according to Warren Buffett. Capital One Financial Corporation (NYSE:COF) was the top contributor to Oakmark Equity and Income Fund’s performance during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
