Stanley Druckenmiller is Dumping These 5 Stocks

In this article, we discuss the 5 stocks Stanley Druckenmiller is dumping. If you want to read our detailed analysis of these stocks, go directly to Stanley Druckenmiller is Dumping These 10 Stocks.

5. Citigroup Inc. (NYSE: C)

Number of Hedge Fund Holders: 87  

Citigroup Inc. (NYSE: C) is ranked fifth on our list of 10 stocks Stanley Druckenmiller is dumping. The firm provides financial services and is headquartered in New York. Regulatory filings reveal that Duquesne Capital first bought a stake in the firm in the first quarter of 2021. This stake was sold during the second quarter of the year. The fund paid an estimated average price of $72.75 per share for the stake. At the end of June, the shares were trading at $70.75.

On July 6, investment advisory Keefe Bruyette assumed coverage of Citigroup Inc. (NYSE: C) stock with an Outperform rating and a price target of $85, noting that universal banks had compelling transformational stories expected to drive improved shareholder value.

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.1 billion in Citigroup Inc. (NYSE: C), down from 90 the preceding quarter worth $6.9 billion.

In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE: C)  was one of them. 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.”