This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Citigroup Singled Out as Top Stock Pick

Stocks in this article: C BAC JPM

NEW YORK, NY ( TheStreet) -- Citigroup (C), the best performer among global U.S. banks, will benefit more than Bank of America (BAC), JPMorgan Chase (JPM) and other rivals as loan losses decline and emerging economies buy more banking services, said Oliver Pursche, a manager for the GMG Defensive Beta Fund (MPDAX).

The mutual fund, started last August, has returned 2.6% this year. Citigroup's shares have risen 47% in the same period, Bank of America has gained 22% and JPMorgan has advanced 7.9%.

Citigroup posted a profit of $4.4 billion in the first quarter, the most since the second quarter of 2007. Fixed-income revenue increased, and Citigroup raised the value of subprime-mortgage backed bonds it holds, while writedowns on those types of securities in the past two years have caused net losses.

Welcome to's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

Are you bullish or bearish?

Pursche: We are bullish on equities, select commodities and inflation-protected securities, and bearish on fixed income. The principal reason we are bullish on these areas is that we believe that infrastructure expansion, along with global demand and wealth shifts, are providing substantial growth and, as a result, investment opportunities.

Using a theme-based approach to investing leads to superior long-term investment results, all the while being able to avoid some of the more volatile areas of the stock market. Our outlook tends to be optimistic by nature, while being defensive by strategy.

What is your top stock pick?

Pursche: In terms of what stock we believe could be the best absolute performer, Citigroup is it. The global financial sector is at the genesis of its turnaround. Within the financial sector, we look for global brands that have a strong management structure, improving fundamentals, in particular lower loan-loss reserves, and are in a position to capitalize on the growing wealth in emerging markets. Citigroup is ideally positioned for this.

What is your best "sleeper" stock choice?

Pursche: Dollar Tree (DLTR). Although we believe the U.S. economy is recovering and will prove to be stronger than most expect, we also continue to see high unemployment. Dollar Tree offers an attractive product mix that is of value and interest to millions of struggling Americans.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,890.18 +85.38 0.48%
S&P 500 2,073.65 +3.00 0.14%
NASDAQ 4,777.5770 +12.1970 0.26%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs