Capital One Financial Corporation (NYSE:COF) is one of the 10 Best Stocks to Buy According to Billionaire Rob Citrone.
Capital One Financial Corporation (NYSE:COF) first appeared in the 13F portfolio of Discovery Capital Management back in the first quarter of 2012. This position comprised over a million shares but was sold off within months. A new position was then opened in the fourth quarter of 2012. This stake, initially comprising 1.8 million shares, jumped to over 3.6 million shares before the end of next year before it was sold off. In the second quarter of 2025, a new position was opened comprising 241,000 shares. Filings for the fourth quarter of 2025 show that the fund owns 232,000 shares in the company, representing an increase of close to 15% compared to filings for the third quarter of 2025.
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Hedge fund interest in Capital One Financial Corporation (NYSE:COF) has increased because of the massive Discover Financial acquisition. By owning Discover’s payment network, Capital One is transitioning into a closed-loop ecosystem similar to American Express. This allows them to bypass external interchange fees. Hedge funds are targeting the $2.7 billion in pre-tax synergies projected by the firm in 2027. Early 2026 data shows the company has already begun migrating its debit portfolio to the Discover network, a move expected to significantly boost margins. The firm is forecast to grow earnings by 27.5% per annum over the next three years, nearly double the 15.5% average for the broader US market.
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