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!

5 Stocks Bill Ackman Is Betting on in 2012

Citigroup

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

We'll start off with the outlier, Citigroup (C). Last quarter, Pershing Square only added onto four positions in its portfolio -- and Citigroup was the sole firm that Ackman and company have little chance of taking an activist role in. The firm took a bite-sized addition to its Citi stake, adding 4,750 shares in the most recent quarter. That puts Pershing Squares total position worth $267.6 million, or 11.8% of the hedge fund's portfolio.

Citi hasn't exactly been the poster child for financial stability lately. The firm, like other big banks, still has a balance sheet that's about as transparent as mud. But Citi has been distancing itself from other banks' dramas lately, a big positive in a year that's been full of government fines and trading losses. At the same time, Citigroup has been quietly raising its financial reserves, boosting its Tier 1 common ratio to meet increased restrictions.

Exposure to developing countries is one of the big differences that Citi offers investors. While most of its peers sought to escape the risks of those emerging markets, they fell right into the zero-interest rate traps in Europe and here at home. Because Citi can earn a wider spread on loans in growing countries, it's been able to churn out some enviable performance lately.

>>5 Big Stocks Ready to Slingshot Higher

By and large, I wouldn't recommend loading up on shares of any big bank in 2012. That said, if you must, you could do worse than Citi right now.

Citigroup, which is also one of David Tepper's Appaloosa Management holdings, shows up on a recent list of 4 Large Bank Stock Picks From Deutsche Bank.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,124.55 +17.85 0.10%
S&P 500 2,000.20 +0.18 0.01%
NASDAQ 4,571.0340 +0.3970 0.01%

Brokerage Partners

Rates from Bankrate.com

  • 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