Shares of Citigroup Inc. traded above $5 for the first time since Jan. 14 after the New York Post reported, citing unnamed sources, that hedge fund manager John Paulson has been buying shares in recent weeks, acquiring about 2% of the company.

Citi's stock has been slammed in recent months. Despite an 86% increase in the past month, the shares are still off 72% in the past year. Citi's shares rose 9.1%, to $5.05, on Thursday.

Though it was not clear why he bought the shares, the sources said Paulson considers Citi's assets undervalued. A spokesman for Paulson declined to comment, the newspaper said.

Paulson has been buying stakes in other banking companies recently, including Bank of America Corp., Capital One Financial Corp., Regions Financial Corp., Fifth Third Bancorp and Goldman Sachs Group Inc.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.