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

Core Viewpoint - Diamond Hill Capital's "Large Cap Fund" reported a cautious outlook on AI-driven market enthusiasm while highlighting the potential of fundamentally stable, high-quality, cash-generative businesses [1] Group 1: Market Performance - The Russell 1000 Value Index increased by 3.8% in Q4 2025, with the information technology sector rising by 11% and communication services by 9%, driven by AI optimism [1] - The Fund returned 1.41% in Q4, underperforming the Russell 1000 Value Index [1] Group 2: American International Group, Inc. (AIG) Performance - AIG was highlighted as a leading contributor to the Fund, despite a one-month return of -5.32% and a 52-week gain of 1.65% [2] - AIG's stock closed at $73.92 on February 2, 2026, with a market capitalization of $40.952 billion [2] Group 3: AIG's Financial Performance - AIG reported better-than-expected earnings, with effective expense management and share repurchases mitigating a weakening pricing environment [3] - The stock also benefited from speculation regarding a potential acquisition by Chubb [3] Group 4: Hedge Fund Interest in AIG - AIG was held by 43 hedge fund portfolios at the end of Q3 2025, down from 52 in the previous quarter [4] - While AIG is recognized for its investment potential, the company believes certain AI stocks may offer greater upside with less downside risk [4]