Citigroup, SunTrust Are Best of Bank Bunch Says Hennessy Manager

Citigroup trades at a cheap valuation and has lots of levers to pull in order to grow its earnings.
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Citigroup trades at a cheap valuation and has lots of levers to pull in order to grow its earnings, said David Ellison, portfolio manager for the Hennessy Large Cap Financial Investor Fund. Ellison added that Citigroup will benefit from its restructuring over the coming years because it has lots of assets it can sell or fix. He is also bullish on shares of SunTrust, saying the regional bank is a classic depository franchise which will be more valuable if and when rates rise because its cost of funds will be lower. Finally, Ellison is positive on Clifton Bancorp's stock because it trades below book value and has a high capital to asset ratio.