'Citigroup is a Bloated Bureaucracy; Radical Things Still Need to Get Done'.

Vikram Pandit

Moore Capital Management and Maverick Capital Management bought Citigroup shares as the bank’s board grew dissatisfied with CEO Vikram Pandit’s performance, eventually ousting him.

Bloomberg reports that Moore Capital, the hedge fund run by billionaire Louis Moore Bacon, bought 5.31m shares in the quarter ended September 30th, making the lender its biggest U.S. publicly listed holding, according to a U.S. Securities and Exchange Commission filing yesterday. Maverick, the $10bn firm run by Lee Ainslie, purchased 2.72m shares of the New York-based bank, according to a filing.

The filings show investors placed bets on Citigroup even as the board’s confidence in Pandit was waning. The firm said October 16th that Michael Corbat replaced Pandit and will review the bank’s businesses before making more management changes.

'There are a lot of pieces to this puzzle that can create value if you have the right management', said William B. Smith, CEO of hedge fund Smith Asset Management, which owns shares of the New York-based bank. 'Citigroup is a bloated bureaucracy; radical things still need to get done'.

Citigroup have fallen 4.5% since Pandit’s departure, closing Wednesday at $35.02 a share, and had plunged 89% during his five years as CEO.

Hit the link below to access the complete Bloomberg article:

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