5 Stocks Better than Coinbase According to Hedge Funds

2. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 87  

Citigroup Inc. (NYSE:C) is placed second on our list of 10 stocks better than Coinbase Global, Inc. (NASDAQ:COIN). The company operates as a diversified financial services holding firm and is headquartered in New York. 

On July 6, investment advisory Keefe Bruyette assumed coverage of Citigroup Inc. (NYSE:C) stock with an Outperform rating and a price target of $85, noting that the overall environment on large-cap banks was constructive despite short-term volatility. 

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.1 billion in Citigroup Inc. (NYSE:C), down from 90 the preceding quarter worth $6.9 billion.

In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C)  was one of them. Here is what the fund said:

“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”