5 Stocks That Benefit From Interest Rate Hikes

4. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 82

Citigroup Inc. (NYSE:C) provides various financial products and services to consumers, corporations, governments, and institutions. On September 14, Mark Mason, the chief financial officer of the bank, said that the firm was planning to divest the Mexican consumer banking business it owned either through a sale or an initial public offering. The move is part of a larger plan by the firm, announced in mid-2021, to exit 13 markets as it seeks to focus on presence in Asia and EMEA on four wealth centers. 

On September 12, Deutsche Bank analyst Matt O’Connor kept a Hold rating on Citigroup Inc. (NYSE:C) stock and lowered the price target to $52 from $55, underlining that banks had upside potential in the long-term if the US avoids a recession. 

Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in Citigroup Inc. (NYSE:C), with 55 million shares worth more than $2.5 billion.  

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:

“Shares of Citigroup Inc. (NYSE:C) 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.”