Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q2 2025 investor letter. The equity portfolio returned 4.67% in the second quarter. The fixed income portfolio returned 1.97%. The fund had an underweight in technology stocks and an overweight in value and mid-cap stocks, leading to underperformance compared to the S&P 500 Index.

In its Q2 2025 investor letter, Oakmark Equity and Income Fund highlighted Capital One Financial Corporation (NYSE: COF). COF saw a one-month return of 13.88% and a 47.66% gain over the last 52 weeks. On July 14, 2025, COF closed at $220.84 per share with a market cap of $141.257 billion. The company’s stock price rose following its acquisition of Discover Financial and strong first-quarter earnings.

Capital One Financial Corporation (NYSE: COF) was the top contributor to Oakmark Equity and Income Fund’s performance in the second quarter. The company’s acquisition of Discover Financial and strong first-quarter earnings drove its stock price higher. Management expects to realize over $2 billion in expense and revenue synergies from the merger in the next 24 months. The fund views COF as a disciplined and tech-forward company.

Despite its strong performance, Capital One Financial Corporation (COF) is not among the 30 Most Popular Stocks Among Hedge Funds. While 93 hedge fund portfolios held COF at the end of the first quarter, there are other AI stocks with greater upside potential and less downside risk. Investors seeking undervalued AI stocks can explore opportunities beyond COF by checking out a free report on the best short-term AI stock.

Read more at Yahoo Finance: Solid Quarterly Results Boosted Capital One Financial Corporation (COF) in Q2