Here’s Why Diamond Hill Capital Large Cap Fund Added Capital One Financial Corporation (COF) to its Portfolio

Soumya Eswaran

Mon, May 12, 2025, 8:56 AM 3 min read

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets exhibited a mixed performance in Q1 as the new presidential administration generated significant buzz with a flurry of actions, leaving investors uncertain about the future direction. The portfolio trailed the Russell 1000 Value Index benchmark in Q1. The strategy returned 1.36% (net) vs 2.14% returns for the index. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its first-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is a financial services holding company for the Capital One, National Association that offers various financial products and services. The one-month return of Capital One Financial Corporation (NYSE:COF) was 16.64%, and its shares gained 31.71% of their value over the last 52 weeks. On May 9, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $187.76 per share with a market capitalization of $71.94 billion.

Diamond Hill Large Cap Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its Q1 2025 investor letter:

"As volatility picked up sharply in the quarter, we were active in the portfolio — and we anticipate that as volatility continues into Q2, we will likewise attempt to capitalize on compelling opportunities to reposition the portfolio for the period ahead. In addition to Capital One Financial Corporation (NYSE:COF), among the new positions we initiated in Q1 were MetLife and General Mills.