Billionaire Stanley Druckenmiller Is Piling Into a High-Yield Dividend Stock Trading for $0.82 on the Dollar -- and Warren Buffett Owns It, Too

Hedge Fund Insights and Retail Investors - Retail investors can use quarterly filings of hedge funds and asset managers accessible through the SEC to gain new investment ideas and validate their investment thesis [1] - Following billionaire investors can be beneficial as they manage large funds with significant capital and have extensive experience and professional training [14] Citigroup's Recent Developments - Citigroup has struggled since the Great Recession but has started to improve under CEO Jane Fraser's leadership [3][4] - The bank is selling or exiting 14 international consumer franchises that consumed too much capital and lacked competitive scale [7] - Citigroup announced plans to divest its highly profitable Mexico franchise, though the process has taken longer than expected [7][11] Investment Activity in Citigroup - Warren Buffett's Berkshire Hathaway took a $4 billion stake in Citigroup in early 2022, making it the 14th largest position in Berkshire's $297 billion portfolio [10] - Stanley Druckenmiller's Duquesne Family Office purchased over 327,000 shares of Citigroup in the third quarter of 2023 [10] Citigroup's Valuation and Strategic Focus - Citigroup trades at roughly 82% of its tangible book value (TBV), reflecting a discount due to its historical underperformance [6] - The bank is focusing on higher-returning businesses such as credit card lending, investment banking, and international cash management [12] - Citigroup has a 3% dividend yield, providing income for investors while they wait for potential stock price appreciation [13] Market and Regulatory Environment - The banking environment has improved with a steepening yield curve, potential deregulation, and lighter capital requirements under the incoming administration [13] - Investment banking activity is expected to improve, further benefiting Citigroup's earnings potential [13]