Citigroup Spurned By Big Name Hedge Fundshttp://www.fool.com/investing/general/2013/05/16/citigroup-spurned-by-big-name-hedge-funds.aspx Jessica Alling
May 16, 2013
Citigroup (NYSE: C) has been on a tear the past two days, rising 5% after hedge fund manager David Tepper spoke out about his confidence in stocks earlier in the week. Dubbed the "Tepper Rally," the bull market following his comments, especially within the financial sector, really boosted Citigroup -- which is Tepper's largest holding in his Appaloosa Management fund.
Hedge fund madness
Both banks are also in the headlines for the changes in George Soro's fund. During the first quarter, Soros eliminated the fund's positions in JPMorgan and Morgan Stanley (NYSE: MS), while reducing its stake in Citi by 7.6 million shares.
Though Citi investors may be concerned about these two funds cutting their positions in the bank, there's little reason to fret -- Citigroup has joined a new club: the Hedge Fund Darlings. Citi is now among the favorites of money managers, with many new funds adding positions in the bank. AIG (NYSE: AIG) had a similar calling in late 2012, becoming the No. 1 hedge fund favorite. The insurer has risen 24% so far in 2013, giving some credence to the funds' fondness for the recovering titan.