ValueAct builds US$1.2bil stake in undervalued Citigroup


The Citigroup headquarters in New York, USA. Citigroup has cut between 200 and 300 additional jobs, most in the global markets business - EPA Photo.

NEW YORK: The activist fund ValueAct Capital Management has amassed a US$1.2bil stake in Citigroup Inc, arguing that the bank long seen as trailing its sector is positioned for success by providing the “plumbing” multinational corporations need to operate.

The San Francisco-based hedge fund run by Jeff Ubben, which disclosed a US$75mil stake in the bank in February, has been building those holdings over the past four or five months, according to a quarterly investor letter obtained by Bloomberg. ValueAct said it’s continuing to add to its position.

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