Here's What Drove Citigroup's (C) Strong Share Performance

Investment management company First Pacific Advisors recently released its third-quarter 2025 investor letter for the “FPA Source Capital.” A copy of the letter can be downloaded here. In the third quarter, the net asset value of the fund gained 4.59% and 13.76% for the trailing 12 months. Regarding the Fund's recent performance, over the past twelve months, Source’s top five equity performers added 4.82% to its return, whereas its bottom five detractors reduced it by 2.03%. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, FPA Source Capital highlighted stocks such as Citigroup Inc. (NYSE:C). Citigroup Inc. (NYSE:C) is a diversified financial services holding company. The one-month return of Citigroup Inc. (NYSE:C) was 7.28%, and its shares lost 51.52% of their value over the last 52 weeks. On December 05, 2025, Citigroup Inc. (NYSE:C) stock closed at $108.88 per share, with a market capitalization of $200.437 billion.

FPA Source Capital stated the following regarding Citigroup Inc. (NYSE:C) in its third quarter 2025 investor letter:

"Citigroup Inc. (NYSE:C) has improved its return on tangible equity (ROTE) compared to industry peers. In addition, regulatory changes in the US have increased the normal level of ROTE for US-based banks. The combination of a low starting valuation, demonstrated operating improvement, and an improved regulatory environment have resulted in strong share-price performance over the past twelve months."

Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 107 hedge fund portfolios held Citigroup Inc. (NYSE:C) at the end of the third quarter, up from 102 in the previous quarter. While we acknowledge the potential of Citigroup Inc. (NYSE:C) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Citigroup Inc. (NYSE:C) and shared SCCM Value Equity Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.