Lone Pine’s Non-AI Strategy Falters: 5 Non-AI Stocks Weighing Down Stephen Mandel’s 2026 Returns

4. Capital One Financial Corporation (NYSE:COF)

Lone Pine Capital’s Stake: $556 Million

YTD Decline in Share Price: 20%

Capital One Financial Corporation (NYSE:COF) first appeared in the 13F portfolio of Lone Pine Capital in the fourth quarter of 2012. This holding comprised 4.4 million shares. The fund added to this stake by 14% in the following quarter before selling it off completely in the next. A new position in the stock was opened in mid-2020 but sold off before the end of the year. The latest stake was bought in the fourth quarter of 2024, consisting of 3.2 million shares. Filings for the fourth quarter of 2025 show that the fund owned just under 2.3 million shares in the firm, down over 10% compared to filings for the previous quarter.

Despite the Q1 2026 EPS miss, $4.42 versus $4.51 estimate, several under the hood metrics have remained robust for Capital One Financial Corporation (NYSE:COF), attracting value-oriented hedge funds. The company reported a significant increase in net interest income to $12.15 billion in Q1 2026, up from $8.01 billion the previous year. It also maintains a fortress-like balance sheet with a Common Equity Tier 1 (CET1) capital ratio of 14.4% and total liquidity reserves of approximately $165 billion. The ongoing integration of Brex and the expansion of the Venture X franchise are seen as key to capturing prime transactor market share. Strategic initiatives in the payments and travel businesses are projected to drive double-digit profit growth through fiscal 2029.

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