Bill Ackman Is Bullish On America And Citigroup (C)

Noted activist investor Bill Ackman, who runs hedge fund Pershing Square Capital Management, believes that America has healed. According to a Yahoo Finance article, Ackman had compared 2008's financial crisis to "the equivalent of a heart attack" in April 2009. He said "it takes time to heal."

Apparently, Ackman thinks that America is now healed, and he is bullish on the market. He said "I think the market's not particularly expensive. Look at large-cap, very high quality businesses today and they seem pretty cheap to me."

The widely followed investor is putting his money where his mouth is, in a major way. At the Ira Sohn Conference on Wednesday, Ackman nonchalantly revealed that he had acquired a 150 million share stake in Citigroup (NYSE: C). He cited a number of reasons why he is bullish on the stock right now.

According to Ackman, thanks to the government's conversion of its preferred stake in Citi to common stock in 2009, Citi "is probably one of the best capitalized banks today, ironically."

He also said that due to the Federal Reserve's interest rate policy, banks like Citigroup are effectively getting free money, since they are able to borrow at ultra low rates and earn attractive spreads by investing in U.S. Treasuries or making loans.

Ackman cited Citi's franchise as another reason for investing in the company. He said Citigroup still has a "great deposit franchise" and a "very well capitalized balance sheet."

Put simply, "it's really a great time to be in the banking business." During Friday's trading session, Citi shares are still trading under $4 at $3.96.