John Paulson buying Citigroup shares: report

Thu Aug 27, 2009 7:57am EDT

John Paulson, founder of New York-based hedge fund Paulson & Co., speaks at the Reuters Hedge Funds and Private Equity Summit in New York, September 7, 2005. REUTERS/Chip East

John Paulson, founder of New York-based hedge fund Paulson & Co., speaks at the Reuters Hedge Funds and Private Equity Summit in New York, September 7, 2005.

Credit: Reuters/Chip East

(Reuters) - Hedge fund manager John Paulson, who bet against financial companies after foreseeing the credit crisis, has been buying Citigroup Inc shares over the past few weeks, the New York Post reported, citing sources.

Paulson bought around a 2 percent stake in Citigroup, a source told the paper. An investor with a 5 percent or higher stake in a company would have to make a disclosure with the U.S. Securities and Exchange Commission.

Sources told the paper Paulson believes Citigroup's assets are undervalued. A spokesman for Paulson declined to comment to the paper on the hedge-fund manager's investment activities.

Paulson's investment moves are monitored by investors after he predicted the implosion of mortgage markets in 2007 and the collapse of banks and other financial companies in 2008.

A spokesman for the hedge-fund manager was not available to comment.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Dan Lalor)

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