"You can still buy Citi at 80 percent of tangible book value and, we think, about eight times recovery earnings, assuming interest rates go up a little bit," he said.
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Nygren sounded positive on financials as a sector.
"At Oakmark, our favorite industry for the past couple of years has been financials, and it continues to be," he said. "We think that especially the banks are very cheap. Most of them now have excess capital. And most of them have the mentality that if they don't get loan growth, they're going to grow through shrinking the denominator, share repurchase."
The three other new stocks Nygren added to the fund were different than Citi, he noted.
"They tend to be the stocks that the frustrated fixed income buyers had bid up to what we thought was too-expensive levels early in 2013," he said, adding that the three other new stocks for the fund in the past quarter were General Mills, Sanofi and Diageo.
"All three, we think, are exceptionally good businesses, sell at 15 to 17 next year's EPS, pay a 2 to 3 percent dividend yield," he said. "So, we think of those names as being far better than average but selling for about average multiples and has the nice kicker that the dividend yield about matches what you could get on the 10-year bond."
After a decline in its yogurt business, General Mills stock has likely bottomed, Nygren said, adding that a cereal joint venture with Nestle had strong emerging market exposure. "We think that asset is undervalued by most investors and creates a better growth opportunity for General Mills than most people appreciate," he said.
Nygren also said he was sticking with General Motors, despite its recent woes.
"We think that within a couple of years they should be able to earn $6 a share, makes it a very low P/E for this market," he said. "We think GM will regain its market share if they lose some because of the current PR environment."
—By CNBC's Bruno J. Navarro.