Why do hedge funds love BofA and Citi?
Both BofA and Citi have come a long way off their lows, yet hedge funds are still snapping up both banks.
I feel as though every single article I read about hedge fund managers making their 13F filings or talking their books in public contains a bullish bet on Citigroup ($C) or Bank of America ($BAC) or both!
What is it about these two scaffold-enclosed banks that brings all the boys to their respective yards?
Paulson, Soros, Falcone, Tepper, Ackman, Ainslie, Loeb - you name it, they own one or the other...or both. And they own them in size.
Reflation, real estate market amelioration, low-risk playing of the yield curve, potential for asset sales, a return to normalized earnings – all could be explanations for the popularity of these two bank stocks amongst the hedge fund crowd. But there must be something more, as both stocks have already come a long way off of their lows for these very well-known reasons.
I'm all ears.
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