Pershing Square Buys Citi

May 27 2010 | 10:55am ET

Add Pershing Square Capital Management to the roster of hedge funds with big stakes in Citigroup.

The New York-based firm’s founder, William Ackman, said yesterday that the hedge fund has bought 150 million shares of Citi, worth about $600 million. It joins the roughly 100 hedge funds that stocked up on Citi shares in the fourth quarter, among them Appaloosa Management, Brevan Howard Asset Management, Eton Park Capital Management, Paulson & Co., RBS Partners, Renaissance Technologies and Soros Fund Management.

Ackman made his Citi revelation at the end of his speech at the Ira Sohn Investment Research Conference in New York. But having spent so much of his talk talking up mall operator General Growth Properties and the beleaguered ratings agencies—the latter position putting him at odds with Greenlight Capital’s David Einhorn—Ackman said he had no time to explain his bullishness on Citi.

Ackman is no stranger to bold predictions at the Sohn conference. Dow Jones Newswires notes that he used the forum three years ago to correctly warn that MBIA Inc. and Ambac Financial Group would be hit hard by the subprime mortgage crisis.

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