Capital One Financial Corp (COF) Surged Following Strong Results

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in Q4, with the Russell 1000 Value Index increasing 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. The growth areas of the market accounted for the majority of the Index’s return in Q4. The firm maintains a cautious stance toward AI-driven market enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% in the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is a US-based consumer finance company and a significant contributor to the fund’s performance in the quarter. On February 2, 2026, Capital One Financial Corporation (NYSE:COF) stock closed at $223.68 per share. Capital One Financial Corporation (NYSE:COF) delivered a -13.28% return in the past month, and its shares are up 11.77% over the past twelve months. Capital One Financial Corporation (NYSE:COF) has a market capitalization of $142.201 billion.

Diamond Hill Large Cap Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its fourth quarter 2025 investor letter:

“Consumer finance company Capital One Financial Corporation (NYSE:COF) outperformed during the quarter following strong Q3 results, with better-than-expected revenue and expense trends. Shares also benefited from management’s clarity around accelerating share buybacks and from generally favorable economic data during the period, which supported investor confidence in spending and credit trends.”

Capital One Financial Corporation (COF)'s Discover Acquisition Might Have Been Challenged By Biden Admin, Says Jim Cramer

Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 129 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the third quarter, compared to 132 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 a list of best cheap stocks to buy for 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.