Citigroup (C) Surged as Its Restructuring and Turnaround Plan Surpassed Expectations

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy highlighted stocks such as Citigroup Inc. (NYSE:C). Citigroup Inc. (NYSE:C) is a diversified financial services holding company. The one-month return of Citigroup Inc. (NYSE:C) was 3.25%, and its shares gained 44.79% of their value over the last 52 weeks. On November 19, 2025, Citigroup Inc. (NYSE:C) stock closed at $99.83 per share, with a market capitalization of $183.777 billion.

SCCM Value Equity Strategy stated the following regarding Citigroup Inc. (NYSE:C) in its third quarter 2025 investor letter:

“Our strong stock selection within Financials made the sector the largest contributor to relative performance for the quarter. Citigroup Inc.’s (NYSE:C) (+20.0%) restructuring and turnaround plan has exceeded expectations so far, and management said on their 2Q earnings call that certain priorities are now largely complete. The increased efficiency is leading to improved returns, with ROTCE rising 150 bps y/y to 8.7%. The stock has re-rated higher, now trading above 1.0x tangible book value, an important inflection point for investor sentiment.”

Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 102 hedge fund portfolios held Citigroup Inc. (NYSE:C) at the end of the second quarter, up from 96 in the previous quarter. While we acknowledge the risk and potential of Citigroup Inc. (NYSE:C) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Citigroup Inc. (NYSE:C) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Citigroup Inc. (NYSE:C) and shared the list of best blue-chip stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.