5 Biggest Stocks that Benefit from Rising Interest Rates

4. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 85

Citigroup Inc. (NYSE:C) is a New York-based investment bank and a diversified financial services company.

The company is in the middle of a transition following the appointment of Jane Fraser as CEO. In the past 18 months since her appointment, Citigroup Inc. (NYSE:C) has streamlined its operations by exiting 14 underperforming markets spread across Asia, Europe, and Mexico. Experts consider Citigroup Inc. (NYSE:C) stock as one of the best value plays at its current valuation in this macroeconomic environment. Due to the rising interest rate, Citigroup Inc. (NYSE:C) has seen its net interest income increase by 12% YoY in 2022. Experts also believe that the current stock price has factored in the element of a mild recession as well.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here’s what the firm said:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”

Citigroup Inc. (NYSE:C) was held by 85 hedge funds as of Q3 2022.