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.

Gerry Broome/AP/File
The Bank of America building is seen in uptown Charlotte, N.C., during the bank's its annual shareholders meeting in April. BofA and Citi seem to be on the buy list of all hedge funds.

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.

Visit the NASDAQ detailed institutional holdings summary for Citi and Bank of America.

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