Bill Ackman: Citigroup
Bill Ackman’s Pershing Square fund didn’t sell its entire stake in Citigroup (NYSE:C) in Q2, but it sold the bulk of it. The position was whittled down from 21.9 million shares to 1.1 million shares, shrinking the position from just under $1 billion in worth to $32 million.
To be fair, Pershing had to free up some cash to facilitate the purchase of Procter & Gamble (NYSE:PG) — a company to which Ackman is trying to apply his personal brand of “activist investor.” And, Citigroup certainly has gone nowhere fast, currently trading right where it was about a year ago, and frustratingly lower than where it was three years ago, meaning the stock simply hasn’t participated in any of the bull market.
Just because the stock is stuck in the mud right now doesn’t mean the company isn’t doing its part, however. Per-share income is on pace to grow from $3.50 last year to $3.63 this year to $4.09 in 2013.
Though the stock hasn’t been fairly valued (based on profits) since Ackman made the purchase back in the first quarter of 2010, like every other investor, he has to have faith and patience that the market will eventually correct the oddly low P/E of 8.4 against the backdrop of sustainable growth.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.