Hennessy Funds' Dave Ellison Favors Citigroup Over JPMorgan on Multiple Expansion and Bull Market Longevity

Following the latest round of major financial earnings reports, Hennessy Funds portfolio manager Dave Ellison sat down with TheStreet's Conway Gittens to break down bank valuations, broader market momentum, and capital deployment strategies.
Ellison highlighted Citigroup ($C) as offering significantly more relative upside compared to JPMorgan Chase ($JPM). While acknowledging JPMorgan's industry-leading execution, he noted its premium valuation limits further multiple expansion. In contrast, Citigroup continues to trade at a substantial discount to tangible book value, providing an asymmetric risk-reward profile as corporate restructuring, expense management, and efficiency gains materialize.
Addressing macroeconomic conditions, Ellison expressed confidence that the equity bull market possesses sufficient earnings durability and liquidity to extend into a fifth consecutive year. When asked how to deploy a fresh $10,000 capital base, he recommended targeting undervalued cyclical financials and high-cash-flow compounders rather than chasing overextended mega-cap tech valuations.