7 hours ago
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Soumya Eswaran
Mon, June 8, 2026 astatine 8:23 AM CDT 3 min read
Argosy Investors, an concern absorption company, released its Q1 2026 capitalist letter. A transcript is disposable to download here. The missive discussed the existent transformative concern scenery driven by the AI capex boom. The writer expressed skepticism astir the durability of the net flowing to its marketplace participants and suppliers. The main situation during capex booms is balancing proviso and demand, particularly the accelerated displacement of AI technologies. While companies payment from rising volumes and prices, the imaginable for net to beryllium overstated becomes a interest if proviso catches up quicker than anticipated. In this backdrop, the steadfast remains cautious successful taking concern decisions. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.
In its first-quarter 2026 capitalist letter, Argosy Investors highlighted Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is simply a starring US-based fiscal services holding institution for Capital One, National Association. On June 5, 2026, Capital One Financial Corporation (NYSE:COF) closed astatine $180.67 per share. One-month instrumentality of Capital One Financial Corporation (NYSE:COF) was -1.77%, and its shares mislaid 9.21% implicit the past 52 weeks. Capital One Financial Corporation (NYSE:COF) has a marketplace capitalization of $112.43 billion.
Argosy Investors stated the pursuing regarding Capital One Financial Corporation (NYSE:COF) successful its Q1 2026 capitalist letter:
"Capital One Financial Corporation (NYSE:COF) precocious executed a transformative transaction, merging with Discover Financial Services. For those unfamiliar with the recognition paper industry, astir recognition paper transaction person 4 parties (merchant, merchant’s processor, recognition paper user, and the paper user’s bank), known arsenic the open-loop model. American Express and Discover historically were the lone closed-loop recognition paper networks, which consolidates the merchant processor and paper user’s bank, frankincense a 3 enactment model. This enables further prime to destruct fraud, supply amended benefits, and more. Capital One has historically been viewed arsenic a subprime lender successful recognition cards and car loans, but this transaction has the quality to structurally amended Capital One’s humanities margins arsenic they modulation distant from Visa/Mastercard and progressively determination to the bequest Discover network. Capital One has immoderate enactment to bash connected the Discover web technologically and by improving acceptance (the % of merchants who judge the card), but I emotion the imaginable for cardinal borderline improvement, which could pb to a valuation uplift implicit time. Starting from a 9x P/E multiple, and perchance a 8x aggregate connected 2027 margins vs. American Express astatine 17x, I americium assured COF tin execute precise good implicit time."
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