Top 5 Stocks to Invest In According to Jeffrey Ubben’s ValueAct Capital

2. Citigroup Inc. (NYSE: C) 

Ubben’s Stake Value: $1,580,401,000
Percentage of Jeffrey Ubben’s 13F Portfolio: 18.44%
Number of Hedge Fund Holders: 90

Citigroup Inc. (NYSE: C) is an American financial services company serving over 200 million customers globally. At the end of Q1 2021, ValueAct owns over 21.7 million shares in the company, worth $1.58 billion. 

Artisan Partners Limited Partnership, an investment management firm, published its fourth-quarter 2020 investor letter and mentioned Citigroup Inc. (NYSE: C) among other stocks. Here is what the firm has to say: 

“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.”