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Bill Ackman Reveals Bullish Position In This Stock

Citigroup traded higher Wednesday, as a highly regarded hedge fund manager's bullish letter about the financial institution came to the surface.

Bill Ackman of Pershing Square Capital Management cites “two important elements of Citi that the market does not fully appreciate” in his note, according to published reports. He puts the investment at nearly 150 million shares.

According to the Ackman letter, Citi has $21 billion in net deferred taxes on its balance sheet, meaning it’s lost so much money it won’t have to pay taxes. He writes that Citi also has up to $30 billion of “excess capital supporting the wind-down of Citi holdings that will be available to be returned to shareholders as these assets are liquidated.”

Guy Adami of Drakon Capital says Citi has done an excellent job at “shedding assets.” He thinks Citi will soon get back above $5 a share, but a full recovery will take up to four years.

Steve Grasso of Stuart Frankel is long Citi and agrees that the stock should be moving higher.

But if you like Citi, Pete Najarian of optionMONSTER.com thinks you should also consider Bank of America . He says it will perform better on the upside.


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Trader disclosure: On June 9, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (AMD) calls; Pete Najarian owns (MCD) calls; Pete Najarian owns (C) calls; Terranova owns (IPSU), (BX), (UDN), (PFE), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (SWN), (GLD), (AAPL), (IPI), (SU), (V), (TEVA), (FXB), (CVS); Adami owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Grasso owns (ABK), (BAC), (BGP), (C), (DYN), (JPM), (LPX), (NDAQ); Kelly owns (GS) puts; Kelly owns (SPY) puts

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (AMKR)
Virtus Investment Partners owns more than 1% of (IGE)
Virtus Investment Partners owns more than 1% of (DBV)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLV)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (DRYS)

For Steve Grasso
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HON)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (SYMC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (TBT)

Brian Kelly
Kanundrum Capital is short (AMZN)
Kanundrum Capital is short (RCL)
Kanundrum Capital is short (XLY)
Kanundrum Capital is short (AFL)
Kanundrum Capital is short (EWI)
Kanundrum Capital is short (EWO)
Kanundrum Capital is short (GS)
Kanundrum Capital is short (HIG)
Kanundrum Capital is short (XLF)
Kanundrum Capital is short (FCX)
Kanundrum Capital is short (XLB)
Kanundrum Capital is short the Euro
Kanundrum Capital is short the U.K. Pound
Kanundrum Capital is short the Swiss Franc
Kanundrum Capital owns (GLD)
Kanundrum Capital owns (GDX)
Kanundrum Capital owns (GDXJ)

Kanundrum Capital owns (AUY)
Kanundrum Capital owns (GFI)
Kanundrum Capital owns (TLT
Kanundrum Capital U.S. Dollar

For Dennis Gartman
Funds managed by Gartman are short yen
Funds managed by Gartman are short sterling
Funds managed by Gartman are euro
Funds managed by Gartman own gold
Funds managed by Gartman owns NFLX
Funds managed by Gartman are short RIMM
Funds managed by Gartman own (SDS)

For Scott Hanold
RBC Capital Markets is currently providing Anadarko Petroleum with non-securities services
RBC Capital Markets has provided Anadarko Petroleum Corporation with non-investment banking securities-related services in the past 12 months

Whitney Tilson
Funds managed by Tilson own (BP)

For Mike Khouw
Cantor Fitzgerald makes a market in (ADM)

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