Deals
ValueAct Builds $1.2 Billion Stake in Undervalued Citigroup
- San Francisco-based fund says bank is misunderstood by market
- Citigroup has $50 billion it could return over next two years
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Activist fund ValueAct Capital Management has amassed a $1.2 billion stake in Citigroup Inc., arguing that the bank long seen as trailing its sector is positioned for success by providing the “plumbing” that multinational corporations need to operate.
Jeff Ubben’s San Francisco-based hedge fund, which disclosed a $75 million 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 Monday. ValueAct said it’s continuing to add to its position.