Alastair Macleod is portfolio manager at Wingate Asset Management and has specialised in international equities for the past 11 years.
How long have you held Citigroup?
Since April 2014 – consistent with our contrarian process, we became interested in the stock following its failure in late March 2014 to gain the US Federal Reserve’s approval to implement its planned capital return to shareholders.
The Fed’s decision related to perceived deficiencies in policy and procedure, as opposed to any concern regarding the capital adequacy of the bank. We believe this issue significantly distracted the market from the broader operational improvements management implemented across the bank, most notably in credit, capital and costs.