Here's What Lifted Citigroup (C) in Q4

Pzena Investment Management recently released its fourth-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The fourth quarter was defined by strong AI momentum and continued market dominance by mega-cap stocks. In this environment, Pzena Focused Value Strategy underperformed the Russell 1000® Value Index, delivering a net return of 2.5% vs. 3.8% for the Index. Given the limited leadership in the market, the firm still observes appealing valuation differences and believes the current environment is favorable for long-term value investors. In addition, you can check the Fund's top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted Citigroup Inc. (NYSE:C) as one of its leading contributors. Citigroup Inc. (NYSE:C) is a diversified financial services holding company. The one-month return of Citigroup Inc. (NYSE:C) was -5.12%, and its shares gained 48.10% of their value over the last 52 weeks. On February 2, 2026, Citigroup Inc. (NYSE:C) stock closed at $116.23 per share, with a market capitalization of $207.966 billion.

Pzena Focused Value Strategy stated the following regarding Citigroup Inc. (NYSE:C) in its fourth quarter 2025 investor letter:

"Consumer discretionary, financials, and consumer staples were the largest contributing sectors during the quarter. Money center bank Citigroup Inc. (NYSE:C) rose amid strong capital markets activity and benign credit conditions. The company continued to repurchase stock and return capital to shareholders, while expenses related to its transformation are expected to decline next year."

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 Hardman Johnston Global Equity Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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