Capital One Financial Corporation (COF) Is Buying Discover - InvestingChannel

Capital One Financial Corporation (COF) Is Buying Discover

Bronte Capital, an investment management company, released its “Amalthea Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down 3.72% for the quarter vs. +2.54% for the MSCI ACWI (in $A). It was down 5.59% in September vs. -0.35% for the index. The market rose in the third quarter, reaching new peaks, with a minor dip in late August and early September. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Amalthea Fund highlighted stocks like Capital One Financial Corporation (NYSE:COF), in the third quarter 2024 investor letter. Capital One Financial Corporation (NYSE:COF) is a financial services holding company for the Capital One, National Association. The one-month return of Capital One Financial Corporation (NYSE:COF) was 16.01%, and its shares gained 71.11% of their value over the last 52 weeks. On November 19, 2024, Capital One Financial Corporation (NYSE:COF) stock closed at $181.00 per share with a market capitalization of $181.00 billion.

Amalthea Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its Q3 2024 investor letter:

“US Credit cards have become a concentrated business. The leading players in order are Chase, a part of JPMorgan, American Express, Citi, Capital One Financial Corporation (NYSE:COF), Bank of America and Discover. A combination of Capital One and Discover will become the number two player.

Capital One is not like the other companies on this list. Capital One was a scrappy startup which originated cards by scoring people with computers and accurately offering pricing to good customers largely to get them to switch. The company is still in the hands of its founder (Richard Fairbanks) who has made dozens of major and correct calls over the history of the firm. The most important of these was buying regional banks and ING Direct to get an online and small customer banking presence to make themselves largely free from wholesale funding markets…” (Click here to read the full text)

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 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the third quarter which was 65 in the previous quarter. While we acknowledge the potential of Capital One Financial Corporation (NYSE:COF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Capital One Financial Corporation (NYSE:COF) and shared the list of best value stocks to invest in according to Warren Buffett. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire