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This Metric Says You Are Smart to Buy Citigroup Inc (C)

Citigroup Inc (NYSE:C) has experienced an increase in hedge fund interest lately.

There are many indicators investors can use to analyze the equity markets. A couple of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research has shown that, historically, those who follow the best picks of the best fund managers can beat the market by a significant market (see just how much).

Equally as important, bullish insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are many reasons for a corporate insider to buy shares of his or her company, but only one, very clear reason why they would buy. Countless academic studies have demonstrated the market-beating potential of this strategy if you know where to look (learn more here).

With all of this in mind, we’re going to take a look at the recent action surrounding Citigroup Inc (NYSE:C).

Citigroup Inc. (NYSE:C)

Hedge fund activity in Citigroup Inc (NYSE:C)

At the end of the fourth quarter, a total of 108 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With hedge funds’ sentiment swirling, some notable hedge fund managers were upping their stakes considerably.

Martin Hughes increased his stake by a total of 1473%, the largest of the funds we track. Michael Price and James Dinan were also increasing their holdings, while Mark Kingdon and Andy Redleaf established new positions in the stock.

All in all, Appaloosa Management Lp held the largest position, ahead of peers Pzena Investment Management, Soros Fund Management, and Adage Capital Management.

Insider trading activity in Citigroup Inc (NYSE:C)

The latest insider purchase we have on record was a buy of 28,200 shares at an average price of $35.52 a piece. E Michael Oneill made this transaction, and now holds 28,200 shares after the move.

Likewise, the most recent insider sale came with R Jeffrey Walsh’s transaction of 6,000 shares at an average price of $38.42.

With the results demonstrated by our time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Citigroup Inc (NYSE:C) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Disclosure: none

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