What Do Hedge Funds Think of Capital One Financial Corp. (COF)?

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With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Alyeska Investment Group, managed by Anand Parekh, initiated the most valuable position in Capital One Financial Corp. (NYSE:COF). Alyeska Investment Group had $57.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $27.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners, Michael Barnes and Arif Inayatullah’s Tricadia Capital Management, and Dmitry Balyasny’s Balyasny Asset Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Capital One Financial Corp. (NYSE:COF) but similarly valued. We will take a look at China Telecom Corporation Limited (ADR) (NYSE:CHA), ABB Ltd (ADR) (NYSE:ABB), Credit Suisse Group AG (ADR) (NYSE:CS), and LyondellBasell Industries NV (NYSE:LYB). This group of stocks’ market caps are closest to COF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHA 4 6297 -1
ABB 9 163110 -2
CS 7 271645 1
LYB 57 3836230 -4

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $1,069 million. That figure was $1,466 million in COF’s case. LyondellBasell Industries NV (NYSE:LYB) is the most popular stock in this table. On the other hand China Telecom Corporation Limited (ADR) (NYSE:CHA) is the least popular one with only 4 bullish hedge fund positions. Capital One Financial Corp. (NYSE:COF) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LYB might be a better candidate to consider a long position.

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