Here's What Lifted American International Group (AIG) in 2025

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in Q4, with the Russell 1000 Value Index increasing 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. The growth areas of the market accounted for the majority of the Index’s return in Q4. The firm maintains a cautious stance toward AI-driven market enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% in the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you can check the Fund's top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted American International Group, Inc. (NYSE:AIG) as one of its leading contributors. 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 -5.32%, and its shares gained 1.65% of their value over the last 52 weeks. On February 2, 2026, American International Group, Inc. (NYSE:AIG) stock closed at $73.92 per share, with a market capitalization of $40.952 billion.

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

"Property and casualty insurer American International Group, Inc. (NYSE:AIG) reported better-than-expected earnings, with strong expense management and share repurchases offsetting a weakening pricing environment. Shares also benefited from reports that fellow insurer Chubb is exploring a potential acquisition of the company."

American International Group, Inc. (NYSE:AIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the third quarter, compared to 52 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 Large Cap Disciplined Value Fund's views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 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.