Top 5 Value Stocks to Invest In According to ValueAct Capital

2. Citigroup Inc. (NYSE: C)

Value: $1,666,392,000
Percent of Jeffrey Ubben’s 13F Portfolio: 19.32%
No. of Hedge Fund Holders: 95

Banking giant Citigroup Inc. (NYSE: C) is the second-largest stock holding of ValueAct’s stock portfolio, according to December quarter filings. The firm held more than 27 million shares of the banking giant, representing 19.33% of the overall 13F portfolio. It is the top value stock to invest in due to dividends and share price appreciation.

Artisan Partners Limited Partnership highlighted a few stocks including Citigroup in the first quarter investor letter. Here is what Artisan Partners Limited Partnership stated:

“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 mistakes. 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.”