Solid Quarterly Results Boosted Capital One Financial Corporation (COF) in Q2

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Equity and Income Fund 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 13.88%, and its shares gained 47.66% of their value over the last 52 weeks. On July 14, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $220.84 per share with a market capitalization of $141.257 billion.

Oakmark Equity and Income Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its second quarter 2025 investor letter:

“Capital One Financial Corporation (NYSE:COF) was the top contributor during the quarter. The U.S.-headquartered consumer finance company’s stock price rose as it completed its acquisition of Discover Financial in May and reported solid first-quarter 2025 earnings headlined by broadly improving credit metrics. Management has identified over $2 billion of expense and revenue synergies from the merger, which it expects to realize over the next 24 months. We continue to view Capital One as a disciplined, tech-forward and well-capitalized company and look forward to seeing how the Discover acquisition adds value.”

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

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 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 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 stocks in Jim Cramer’s spotlight. 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.