5 Stocks to Buy According to British-Australian Billionaire Michael Hintze

3. Citigroup Inc. (NYSE:C)

Hintze’s Stake Value: $40,112,000
Percentage of Michael Hintze’s 13F Portfolio: 2.22%
Number of Hedge Fund Holders: 87

Citigroup Inc. (NYSE:C) is a global investment bank and financial services firm.

On July 15, Piper Sandler analyst Jeffery Harte lowered his price target on Citigroup Inc. (NYSE:C) to $91 from $95 and maintained an “Overweight” rating on the shares after second-quarter strong results. While the stock dropped after management raised its expense forecast for the year, Harte says in a research note that the guidance is relatively consistent with management’s statements at an industry conference last month.

Artisan Partners Limited Partnership, in its fourth-quarter 2020 investor letter, mentioned Citigroup Inc. (NYSE:C). 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.”