Does Capital One Financial Corporation (COF) Have Long-Term Earnings Power?

Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 10.5% compared to a 7.7% return for the MSCI World Index. The fund returned 9.3% since its inception compared to 5.4% for the index. In the first quarter, both the U.S. and non-U.S. portions of the portfolio contributed to the outperformance of the fund. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Oakmark Global Fund highlighted stocks like Capital One Financial Corporation (NYSE:COF) in the first quarter 2023 investor letter. Headquartered in McLean, Virginia, Capital One Financial Corporation (NYSE:COF) is a financial services company. On April 12, 2023, Capital One Financial Corporation (NYSE:COF) stock closed at $95.69 per share. One-month return of Capital One Financial Corporation (NYSE:COF) was 2.28%, and its shares lost 27.83% of their value over the last 52 weeks. Capital One Financial Corporation (NYSE:COF) has a market capitalization of $36.596 billion.

Oakmark Global Fund made the following comment about Capital One Financial Corporation (NYSE:COF) in its Q1 2023 investor letter:

“Capital One Financial Corporation (NYSE:COF)is another long-term Oakmark holding where the stock was dragged into the banking controversy despite not sharing the balance sheet risks (neither securities’ losses nor uninsured deposits) of the failed banks. Capital One has a terrific track record of both growth and risk management under founder CEO Richard Fairbank. We were buying Capital One at roughly 6x this year’s consensus EPS and a discount to tangible book value. Furthermore, we believe long-term earnings power is well above what we will see this year.”

Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the fourth quarter which was 52 in the previous quarter.

We discussed Capital One Financial Corporation (NYSE:COF) in another article and shared Davis Financial Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.