Top 5 Stocks to Buy According to Jeff Ubben’s ValueAct Capital

3. Citigroup Inc. (NYSE: C)

ValueAct’s Stake Value: $1,467,759,000
Percentage of Jeff ValueAct’s 13F Portfolio: 16.26%
Number of Hedge Fund Holders: 87

Citigroup Inc. (NYSE: C) is a financial service holding company that offers a wide range of services. It was incorporated in 1812 and ranks third on the list of top 10 stocks to buy according to Jeff Ubben’s ValueAct Capital. Citigroup Inc. (NYSE: C) shares have returned 35.51% to investors during the course of the past 12 months.

On August 11, Citigroup (NYSE: C) unveiled its Bridge created by the Citi financing platform, linking firms with local lenders for loans up to $10 million. The hedge fund owns 20.75 million shares in Citigroup (NYSE: C), worth over $1.47 billion, representing 16.26% of their portfolio. The hedge fund has trimmed its stake in the firm by 5% in the second quarter of 2021. Natixis Global Asset Management’s Harris Associates is a leading shareholder in Citigroup (NYSE: C), with 27.39 million shares worth $1.94 billion.

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.”