Hotchkis & Wiley Large Cap Disciplined Value Fund Views American International Group (AIG) Share Decline as Inexplicable

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Disciplined Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index recorded a return of +8.1% in the third quarter of 2025, closing the period near its all-time highs. Technology and communication services drove the broad large-cap market while small caps outperformed their large counterparts in the quarter. The fund outperformed the Russell 1000 Value Index in the quarter, returning 6.41% vs 5.33% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value 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 -6.17%, and its shares gained 0.93% of their value over the last 52 weeks. On November 6, 2025, American International Group, Inc. (NYSE:AIG) stock closed at $76.28 per share, with a market capitalization of $41.159 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its third quarter 2025 investor letter:

"American International Group, Inc. (NYSE:AIG) is a leading commercial insurance company, providing property-casualty insurance, life insurance, and risk management products. AIG reported results that we viewed as decidedly positive. Earnings per share were up more than 50% from a year ago. Underwriting and investment income grew considerably, while the share count was down. Premiums written might have been up less than what investors were hoping for, but we view the share price decline as largely inexplicable. We believe AIG is poised for further improvements in operating performance. AIG has been improving return on equity and has good management committed to smart allocation of its excess capital—this is not reflected in its valuation."

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 the list of Diamond Hill Select Fund's views on the company. 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.