Here’s Why Citigroup (C) Rose in Q2

Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and consumer discretionary, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Fund 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 14.89%, and its shares gained 33.15% of their value over the last 52 weeks. On July 16, 2025, Citigroup Inc. (NYSE:C) stock closed at $90.02 per share, with a market capitalization of $165.718 billion.

Oakmark Fund stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter:

“Citigroup Inc. (NYSE:C) was the top contributor during the quarter. The U.S.-headquartered diversified bank’s stock price rose throughout the period after it delivered positive first-quarter 2025 results. Despite a volatile macro backdrop, management reiterated full-year guidance across all key measures and reaffirmed their commitment to achieving a double-digit return on tangible common equity target. Share repurchases stepped up during the first quarter, with management projecting further increases as the year progresses. Shares also benefitted from growing optimism around a more favorable regulatory outlook for banks, including potential capital relief that could support higher returns and distributions to shareholders.”

An image of a customer in a bank carrying a bag full of documents and smiling confidently.

Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Citigroup Inc. (NYSE:C) at the end of the first quarter, which was 101 in the previous quarter. While we acknowledge the risk and potential of 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 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 stocks Jim Cramer shared insights on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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