Citigroup Inc. (NYSE:C) was in 131 hedge funds’ portfolio at the end of the third quarter of 2014. According to hedge fund tracking website Insider Monkey, Citigroup investors should be aware of an increase in hedge fund sentiment lately. Bill Ackman dumped Citigroup long time ago in favor of P&G but this didn’t stop other hedge funds from making Citigroup Inc. (NYSE:C) their third most popular stock. Only Apple and Google are more popular than Citigroup.
If you’d ask most shareholders, hedge funds are perceived as unimportant, outdated investment vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, experts at Insider Monkey, a website specializing in hedge funds, choose to focus on the bigwigs of this club, around 700 funds. These money managers manage the lion’s share of the hedge fund industry’s total asset base, and by keeping an eye on their best investments, Insider Monkey has spotted many investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 18 percentage points a year for a decade in their back tests.
With all of this in mind, let’s review the fresh action surrounding Citigroup Inc. (NYSE:C).
How have hedgies been trading Citigroup Inc. (NYSE:C)?
At the end of the third quarter, a total of 131 of the hedge funds were bullish in this stock, a change of 1% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings substantially.
Of the funds tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management had the biggest position in Citigroup Inc. (NYSE:C), worth close to $1.39 billion, accounting for 5.4% of its total 13F portfolio. The second largest stake is held by Viking Global, managed by Andreas Halvorsen, which held a $772.3 million position; 3.1% of its 13F portfolio is allocated to the stock. Other fund managers with similar optimism contain Ken Fisher’s Fisher Asset Management, Richard S. Pzena’s Pzena Investment Management and D. E. Shaw’s quant hedge fund shop D E Shaw.
Last quarter specific money managers have jumped into Citigroup Inc. (NYSE:C) headfirst. Viking Global, managed by Andreas Halvorsen, initiated the most valuable position in Citigroup Inc. (NYSE:C). Viking Global had 772.3 million invested in the company at the end of the quarter. Jonathan Auerbach’s Hound Partners also made a $413.9 million investment in Citigroup calls during the quarter. The other funds with brand new C positions are Edgar Wachenheim’s Greenhaven Associates, Anthony Bozza’s Lakewood Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.