Paulson All Over Citi

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Famed short seller John Paulson is piling up on financials. After Bank of America–where he is the largest single investor with 167,990,464 shares–he is now all about Citi.

The New York Post reports that he has acquired a 2% stake in the troubled bank, below the 5% that would require him to file his investment with the SEC.

From the New York Post:

Although it’s unclear what the hedge-fund master’s rationale is for buying shares of the nation’s most troubled bank, of which Uncle Sam holds a 34% stake, sources think that Paulson believes Citi’s assets are undervalued.

One source said that Paulson sees Citi’s shares trading closer to its book value of $5 to $7 a share, and that he has been scooping up shares in the bank over the past several weeks.

According to an Aug. 12 SEC filing, other financials Paulson bought include: 17,000,000 shares of Capital One Financial Corp.; 5,000,000 shares of Fifth Third Bancorp; 3,000,000 shares of First Horizon National Corp. common stock; 2,000,000 shares of Goldman Sachs and 7,000,000 shares of JPMorgan.



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