(Bloomberg) – Paulson & Co., Lansdowne Partners LP, and Lone Pine Capital LLC were among investment firms that cut stakes in Citigroup Inc. as shares of the bank slid 38 percent in the third quarter.<\/p>\n
Paulson & Co., founded by billionaire John Paulson, sold about 8.4 million shares of New York-based Citigroup during the quarter while Lansdowne, Europe\u2019s biggest equity hedge fund, sold 1.3 million and Lone Pine disposed of 3.8 million, according to regulatory filings. Hedge funds collectively sold about 30.8 million shares, based on data compiled by Bloomberg from 757 managers.<\/p>\n
Citigroup was the quarter\u2019s fourth-worst performer in the 24-company KBW Bank Index, helping to slash more than $4 billion from hedge-fund portfolios, the filings show. Investors also fled Bank of America Corp. amid slower U.S. growth and concern that lenders could face losses tied to Europe\u2019s debt crisis.<\/p>\n
\u201cIn August there was concern about worldwide recession,\u201d said Charles Peabody, an analyst with Portales Partners LLC in New York. \u201cCiti shares came under the most pressure because of their internationally diversified franchise. That contrasts with the thinking in the first quarter of 2011 when people were looking for international exposure.\u201d<\/p>\n