A $13 Billion Fund Dumps These 3 Stocks Roxanna Maglangit Tue, November 10, 2026 at 11:51 AM EST 6 min read JPM +0.11% C -0.03% MSFT -2.64% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
A $13 billion fund, MKP Capital Management, sold all of its JPMorgan Chase, Citigroup and Microsoft shares in the third quarter.
JPMorgan was the largest of the three exits, at 12.8% of the fund's 13F stocks on June 30.
Wall Street's average targets sit 6% above JPMorgan's last close, 14% above Microsoft's and 21% above Citigroup's.
The numbers back the JPMorgan sale best, and Citigroup is the one of the three worth buying back.
A $13 billion fund just walked away from JPMorgan Chase (JPM:NYSE), Citigroup (C:NYSE) and Microsoft (MSFT:NASDAQ).
MKP Capital Management, which manages $12.85 billion in all, held none of the three on Sept. 30. That's according to its 13F for the quarter ended Sept. 30, filed Nov. 4, which lists $3.26 billion of US stocks in 20 positions.
Three months earlier, these were real positions: JPMorgan alone was 12.8% of the fund's 13F stocks, Citigroup 3.6% and Microsoft 3.5%.
The fund still holds a bank. By Sept. 30, Goldman Sachs was its third-largest position, at 8.9% of its 13F stocks, after the fund raised its share count 176%. Apple was a new position at 5.0%.
A 13F shows only what a fund held on the last day of the quarter. It doesn't say when the fund sold, at what price, or why. It also leaves out shorts, bonds, cash and stocks listed outside the US, and that matters for a firm whose US stocks come to $3.26 billion of the $12.85 billion it manages.
Each stock's move below runs from June 30, the last quarter-end when the fund held it, to the latest close. It says nothing about what the fund got for its shares.
TIKR tracks 26 analysts on JPMorgan Chase. How many say "Buy"?
See the full breakdown of Buy, Hold, and Sell ratings on JPMorgan Chase, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See JPMorgan Chase's Analyst Ratings
On June 30, the fund held 1.42 million JPMorgan shares worth $466 million. The stock is up 8% since then.
The third quarter brought JPMorgan's first earnings miss in nearly three years: EPS of $5.57 against a consensus near $5.90, as expenses rose 12%. The bank still raised its 2026 net interest income outlook to about $97.2 billion excluding Markets. It also earned 20% on tangible common equity, above its 17% through-the-cycle target. But net buybacks fell to $664 million in the quarter, and management now puts its excess capital at about $30 billion, down from at least $60 billion in May 2025.
Analysts have raised their average target from $328 to $373 over the past year.
The stock is now close to that target. JPMorgan's price-to-tangible-book multiple sits near the top of its range since 2007, a range that averages 1.84x. A bank priced near a record multiple of book, right after a miss, doesn't leave much room for anything to go wrong.
The fund held 342,500 Microsoft shares worth $128 million on June 30. The stock is up 49% since then, and Azure grew 48% in the September quarter, beating Microsoft's guide of about 45%.
Microsoft is paying for that growth in cash, though. Free cash flow fell to $18.6 billion in the September quarter from $25.66 billion a year earlier, and capex is guided above $50 billion this quarter. A day after its report, Microsoft sold $25 billion of bonds.
Analysts' average target barely moved over the past year, from $626 to $633.
The stock has climbed most of the way to that target. At about 27x forward earnings, Microsoft trades near its 12-year average of 26x and below its five-year average of 30x. That's a reasonable price for a cloud business still beating its own guidance.
On June 30, the fund held 942,000 Citigroup shares worth $132 million. The stock is down 11% since then, while the business keeps getting better.
Citi's third-quarter net income jumped 40% to $5.2 billion. It earned 12.6% on tangible common equity in the first nine months of 2026, up from 7.7% in 2025 and 4.9% in 2023. Management targets 11% to 13% for 2027 and 2028.
Analysts have raised their average target from $114 to $151 over the past year, after a July peak near $156.
Citi's price-to-tangible-book multiple is near the top of its range since 2009, which averages 0.84x. But Citi earned single-digit returns on tangible equity in every year from 2022 to 2025, and it's earning well above that now.
There are near-term risks. Management expects fourth-quarter Markets revenue to fall about 20% from the third quarter. Deconsolidating Banamex in early 2027 will also put a loss of about $9 billion through earnings, though management says it won't cost Citi capital.
The JPMorgan sale is the easiest to defend: the stock trades near the Street's target and near the top of its book-multiple range, after a quarter that missed. Microsoft's sale is a closer call, since the stock has already run and the multiple is still a fair one.
If you could buy back only one of the three right now, it should be Citigroup. It has the most upside on the Street's numbers, and its returns are still climbing.
Of course, Citi's January report is the first test of those returns without this year's trading boom. The fund's next 13F, for the quarter ending Dec. 31, is due by mid-February.
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what JPMorgan Chase could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use.
