Kahn Brothers’ Top Stock Picks: Merck & Co. Inc. (MRK) Overtakes Citigroup Inc. (C) as Top Holding

#4. Hologic Inc. (NASDAQ:HOLX)

– Number of shares owned by Kahn Brothers as of March 31: 1.33 Million

– Value of Kahn Brothers’ holding as of March 31: $45.76 Million

The Graham-style investment firm reduced exposure to Hologic Inc. (NASDAQ:HOLX) by 23,767 shares during the first three months of 2016, ending the quarter with 1.33 million shares worth $45.76 million. The $46.76 million-stake accounted for 8.6% of Kahn Brothers’ equity portfolio on March 31. The manufacturer and supplier of diagnostics products, medical imaging systems and surgical products has lost 12% of value since the start of 2016, partially owing to the seemingly disappointing financial results for the second quarter of fiscal 2016 that ended March 26. Hologic’s top- and bottom-line figures were ahead of analysts’ expectations, but investors appear to have been disappointed with the company’s revenue projections for the third quarter of fiscal 2016. The management anticipates revenues in the range of $695 million to $705 million for the quarter, which would imply a top-line a growth rate between 0.2% and 1.6%. Ken Fisher’s Fisher Asset Management owns 47,620 shares of Hologic Inc. (NASDAQ:HOLX) as of March 31.

#3. Citigroup Inc. (NYSE:C)

– Number of shares owned by Kahn Brothers as of March 31: 1.14 Million

– Value of Kahn Brothers’ holding as of March 31: $47.53 Million

The New York-based contrarian hedge fund was mildly bullish on Citigroup Inc. (NYSE:C) in the first quarter of 2016, during which Kahn Brothers lifted its stake in the bank by 14,355 shares to 1.14 million. The 1.14 million-share stake was worth $47.53 million at the end of March and accounted for 8.9% of Kahn Brothers’ equity portfolio. The shares of the fourth-largest U.S. bank by assets have gained 17% in the past three months, but they are down 15% for the year. It should be noted that Citigroup was the only big U.S. bank to have designed an acceptable “living will” resolution plan, which explains how banks would go bankrupt without destabilizing the financial system in times of turmoil. Citigroup has implemented a number of measures to inject freshness into its business, which included exiting consumer businesses in Brazil, Argentina and Colombia, as well as overhead reductions. The 13F filing for the March quarter submitted by Richard S. Pzena’s Pzena Investment Management showed a stake of 9.86 million shares in Citigroup Inc. (NYSE:C).