American International Group (AIG) Fell Along With Peers

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as American International Group, Inc. (NYSE:AIG). American International Group, Inc. (NYSE:AIG) is an insurance company that operates through North America Commercial, International Commercial, and Global Personal segments. The one-month return of American International Group, Inc. (NYSE:AIG) was -2.08%, and its shares gained 2.98% of their value over the last 52 weeks. On October 29, 2025, American International Group, Inc. (NYSE:AIG) stock closed at $77.98 per share, with a market capitalization of $43.201 billion.

Diamond Hill Select Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its third quarter 2025 investor letter:

"Among our bottom individual Q3 contributors were American International Group, Inc. (NYSE:AIG) and CarMax. Property and casualty insurance company AIG underperformed in sympathy with many industry peers. The benefit of pricing in excess of loss costs that property and casualty insurers have enjoyed the past several years is waning and has weighed on the group in recent months."

American International Group, Inc. (NYSE:AIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 52 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the second quarter, up from 49 in the previous quarter. While we acknowledge the potential of American International Group, Inc. (NYSE:AIG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered American International Group, Inc. (NYSE:AIG) and shared Hotchkis & Wiley Mid-Cap Value Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.