Insiders Have Bought American International Group Inc (AIG) and More of Billionaire Dan Loeb’s Picks

The fund moved heavily into AbbVie Inc (NYSE:ABBV), a $70 billion market cap pharmaceutical company where we have also seen insider buying in the last three months. Last quarter AbbVie Inc (NYSE:ABBV)’s revenue was up slightly compared to the first quarter of 2012, with higher margins pulling net income up by 10%. The earnings multiples are in the low teens, and the company’s most recent dividend payment suggests a yield of 3.5%. Renaissance Technologies, whose founder Jim Simons is now a billionaire, initiated a position of 2.4 million shares between January and March (research more stocks Renaissance was buying).

Loeb and some other activists- most notably Elliott Management, managed by billionaire Paul Singer- have been targeting Hess Corp. (NYSE:HES) in a campaign to break up that oil and gas company, and we’ve tracked insider purchases here as well. Analyst expectations for 2014 imply a forward P/E of 12, in line to slightly above where oil majors are trading in the current market. However, the company’s most recent 10-Q shows good numbers compared to the same period in the previous year, and there is of course the possibility that a breakup would lead to an improvement in operations.

Disclosure: I own no shares of any stocks mentioned in this article.