Hedge Funds Bank of America Citigroup

Hedge Funds Bank of America Citigroup

Hedge Funds Swap Bank of America for Citigroup

Several of the top hedge funds reduced shares of Bank of America (BAC) and instead bet big on Citigroup Inc. (C.N). Bank of America has had a much smoother recovery from the lows of 2008 than Citigroup. But the trades by hedge funds may signal that Citigroup's stock will rise.
But the Charlotte, North Carolina-based lender's greater reliance on U.S.-based customers may now be a disadvantage in light of the weaker U.S. economic picture and tighter financial regulations, some analysts and investors said.

"Globally, there's far greater opportunity for Citigroup than for Bank of America," said Bill Fitzpatrick, analyst at Optique Capital Management.

The shifting sentiment was clear in the second quarter "Smart Money" survey compiled by Thomson Reuters from securities filings of the portfolios of 30 of the biggest fundamentally-oriented hedge funds.

Larry Robbins' Glenview Capital sold down some of its BofA position while adding to its Citi stake. Andreas Halvorsen's Viking Global Investors, Chris Shumway's Shumway Capital and Steve Mandel's Lone Pine capital all exited BofA. Bill Ackman's Pershing Square Capital and Thomas Claugus's GMT Capital took up new stakes in Citi. Source

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