A look at SEC regulatory filings shows that Citigroup (C
) is currently owned by some new big investors. To name a few, it seems as if George Soros, Ken Fisher, Michael Price, Bruce Berkowitz, and John Paulson have added to their positions since 2009 and are holding on for what seems to be the eventual return of Citi.
Backed by outstanding management talent headed by CEO Vikram Pandit, Citi has clearly positioned itself for the return of credit expansion and economic wellbeing in the years to come. Fortunately, after all its divestures in CitiHoldings, Citi has returned to its core purpose and business model: plain old fashion banking. The company broadly represents the U.S. credit/collateral value cycle, and when credit expansion begins to emerge yet again, you may see a significant gain in Citi's stock price and operating performance.
Some critics claim that the reverse stock split will only damage Citi’s short-term stock price, as institutions can now unload their shares without causing high volatility, which is often seen in high volume selling of low priced shares. However, with value investors like Michael Price, Ken Fisher, and Bruce Berkowitz locked-in, it is hard to imagine a big stock sell off. It appears quite evident that Citi possesses some sort of long-term intrinsic value and high return growth.
Disclosure: Author holds a long position in C