SoFi (NASDAQ:SOFI) stock has stumbled more than 10% year-to-date, yet a
major player in the investing world just unveiled its enlarged position in
the company.

The curtain has fallen on the fourth-quarter 13F deadline, laying bare
institutional investments as of Dec. 31. During this period, Ken Griffin’s
Citadel Advisors bolstered its existing SoFi portfolio by an astonishing
632%, securing 3.92 million more shares. As a result of this acquisition,
the international hedge fund’s SOFI stock ownership now totals 4.55 million
shares.

It’s worth emphasizing that Citadel commands a grand portfolio of 5,819
positions, as noted by HedgeFollow. Among these, SoFi stands as the fund’s
1,269th largest position.

Citadel’s SoFi Stock Position Leap

Moreover, Citadel also holds both puts and calls in relation to the
personal finance company. By Dec. 31, the fund’s 841st largest position
consisted of puts against 7.87 million shares. During the quarter,
Citadel shed puts involving 283,400 shares.

Calls against 10.91 million shares of SOFI made up Citadel’s 632nd largest
position at the close of 2023. In Q4, Citadel procured calls for 2.14
million shares of the company. Under U.S. Securities and Exchange
Commission (SEC) policies, the strike price and expiration date of these
options are not required to be disclosed.

Taken together, Citadel’s exposure to SoFi leans bullish. The fund boasts
an average 13F holding period of 19.6 quarters, equivalent to 4.9 years.

In the previous year, Citadel amassed $8.1 billion in profits. Since its
inception in 1990, the fund has generated a colossal $74 billion in
profits, solidifying its status as the most profitable — and conceivably
the top-performing — hedge fund of all time.

So, what’s the allure of SoFi and SOFI stock to Citadel? In Q4, the company
witnessed a robust 34% growth in adjusted net revenue to $594 million. It
achieved profitability with a GAAP EPS of 2 cents, marking SoFi’s maiden
profitable quarter since its public offering.

However, SoFi has indicated an anticipated deceleration in revenue growth.
It foresees compound revenue growth between 20% and 25% from 2023 to 2026.
For Q1 2024, the company projects adjusted net revenue ranging from $550
million to $560 million. SoFi has a track record of eclipsing revenue
estimates, so this guidance might be a conservative estimate.

On the date of publication, Eddie Pan had no direct or indirect positions
in the securities mentioned. The views expressed in this article are those
of the writer, subject to the InvestorPlace.com Publishing Guidelines.