Here’s What Positioned Capital One (COF) Uniquely

RGA Investment Advisors, an investment management company, has released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the market extended its recovery from the crash following Liberation Day. However, the market has been dominated by a handful of mega-cap stocks. The letter discussed the stock market concentration and where the firm sees potential in a concentrated environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, RGA Investment Advisors 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 15.07%, and its shares gained 35.50% of their value over the last 52 weeks. On December 22, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $246.77 per share, with a market capitalization of $157.814 billion.

RGA Investment Advisors stated the following regarding Capital One Financial Corporation (NYSE:COF) in its third quarter 2025 investor letter:

“We recently added shares of Capital One Financial Corporation (NYSE:COF) to our portfolios. At one point, through our shares in ING years ago, we owned COF indirectly. This resulted from ING’s divestiture of ING Direct to Capital One, in exchange for cash and shares totaling just shy of 10% of the company. This acquisition gave Capital One a low-cost, digitally native (branchless) deposit base with a state-of-the-art user interface and consumer experience. Though we never owned COF directly, we watched it admirably for years. When COF announced their Discover (DFS) acquisition, we thought it was too good to be true and feared regulators could prevent the tie-up from happening, but we did our work as we watched to see what would happen. As luck would have it, regulators eventually approved the deal and we now own COF directly.

The acquisition of DFS is a transformative transaction that uniquely positions COF to generate substantial value, fundamentally redefine its competitive standing, and reshape the US payments landscape. By integrating DFS’s proprietary network and customer base, COF is shifting from being primarily a card issuer to a vertically integrated payments entity, akin to an American Express-like operation with scale rivaling the largest payments networks in the world. …” (Click here to read the full text)

In another article, we covered Capital One Financial Corporation (NYSE:COF) and shared the list of best large cap stocks to invest in. Baron FinTech Fund also initiated a position in Capital One Financial Corporation (NYSE:COF) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 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.