Capital One Financial Corp (COF) Surged Following Strong Results

Core Insights - Diamond Hill Capital's "Large Cap Fund" reported a 1.41% return in Q4 2025, underperforming the Russell 1000 Value Index, which increased by 3.8% [1] - The information technology and communication services sectors led the market rally, driven by optimism surrounding AI [1] - The firm remains cautious about AI-driven market enthusiasm, favoring fundamentally stable, high-quality, cash-generative businesses [1] Company-Specific Insights - Capital One Financial Corporation (NYSE:COF) was highlighted as a significant contributor to the fund's performance, with a stock price of $223.68 as of February 2, 2026 [2] - COF experienced a -13.28% return in the past month but has risen 11.77% over the past twelve months, with a market capitalization of $142.201 billion [2] - The company outperformed in Q4 due to strong Q3 results, better-than-expected revenue and expense trends, and management's clarity on accelerating share buybacks [3] Hedge Fund Interest - Capital One Financial Corporation is not among the 30 most popular stocks among hedge funds, with 129 hedge fund portfolios holding COF at the end of Q3, down from 132 in the previous quarter [4] - While COF is acknowledged as a potential investment, the firm believes certain AI stocks present greater upside potential and less downside risk [4]