In the latest hedge fund letter, portfolio manager William Ackman goes over his positions in General Growth Properties, Borders, Sears Canada, Craft, Citigroup, and Alliansce.  At the time the letter was written, Citigroup made up 9% of the fund’s holdings with the following rationale:

“We recently acquired 146.5 million shares of Citigroup, representing approximately 9% of fund capital. We believe that recent events surrounding the financial reform bill, alleged fraud at Goldman Sachs, the overhang of the sale of the U.S. government’s 27% stake in Citi, and distress in Europe have created a compelling opportunity to purchase Citi shares at a meaningful discount to their fair value.”

Pershing Q1 2010 Investor Letter