Hedge Funds Are Crazy About American International Group Inc (NYSE:AIG)

American International Group Inc (NYSE:AIG) was in 142 hedge funds’ portfolio at the end of December. AIG has seen an increase in hedge fund interest lately. There were 121 hedge funds in our database with AIG holdings at the end of the previous quarter.

If you’d ask most traders, hedge funds are perceived as slow, outdated financial vehicles of yesteryear. While there are over 8000 funds trading at the moment, we at Insider Monkey hone in on the aristocrats of this group, around 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total asset base, and by monitoring their top stock picks, we have deciphered a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Equally as key, bullish insider trading activity is another way to break down the financial markets. There are a number of motivations for an insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).

Consequently, we’re going to take a peek at the latest action surrounding American International Group Inc (NYSE:AIG).

What does the smart money think about American International Group Inc (NYSE:AIG)?

At the end of the fourth quarter, a total of 142 of the hedge funds we track held long positions in this stock, a change of 17% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

Of the funds we track, Bruce Berkowitz’s Fairholme (FAIRX) had the largest position in American International Group Inc (NYSE:AIG), worth close to $3.031 billion, comprising 43.6% of its total 13F portfolio. Sitting at the No. 2 spot is William B. Gray of Orbis Investment Management, with a $714 million position; 7.1% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Dan Loeb’s Third Point, Daniel S. Och’s OZ Management and Richard Perry’s Perry Capital.

As aggregate interest increased, specific money managers have been driving this bullishness. Orbis Investment Management, managed by William B. Gray, initiated the largest position in American International Group Inc (NYSE:AIG). Orbis Investment Management had 714 million invested in the company at the end of the quarter. Seth Klarman’s Baupost Group also made a $247 million investment in the stock during the quarter. The other funds with brand new AIG positions are Stephen Mandel’s Lone Pine Capital, Jonathon Jacobson’s Highfields Capital Management, and Alan Fournier’s Pennant Capital Management.

Insider trading activity in American International Group Inc (NYSE:AIG)

Insider trading activity, especially when it’s bullish, is most useful when the company in focus has experienced transactions within the past half-year. Over the last 180-day time period, American International Group Inc (NYSE:AIG) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s strategies, retail investors must always keep an eye on hedge fund and insider trading activity, and American International Group Inc (NYSE:AIG) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!