Hotchkis & Wiley, an investment management company, released its first-quarter 2026 investor letter for the “Hotchkis & Wiley Mid-Cap Value Fund.” A copy of the letter can be downloaded here. In the first quarter, geopolitical instability and AI-focused investments were the key market drivers. The energy sector significantly benefited from the Brent crude oil surge due to U.S.-Israel strikes on Iran. The Hotchkis & Wiley Mid-Cap Value Fund outperformed the Russell Midcap Value Index, mainly due to strong stock selection in energy, which returned 79% compared to 37% for the index. The Fund delivered a return of 6.74% in Q1 Vs. 3.68% return for the index. While stock selection in technology, healthcare, and consumer discretionary negatively impacted overall performance. The firm remains focused on its disciplined and long-term investment approach. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted American International Group, Inc. (NYSE:AIG). American International Group, Inc. (NYSE:AIG) is a global insurance corporation that offers property casualty insurance and financial services. On April 23, 2026, American International Group, Inc. (NYSE:AIG) closed at $76.33 per share. One-month return of American International Group, Inc. (NYSE:AIG) was 4.63%, and its shares lost 6.02% over the past 52 weeks. American International Group, Inc. (NYSE:AIG) has a market capitalization of $40.82 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q1 2026 investor letter:
“American International Group, Inc. (NYSE:AIG) is a leading commercial property-casualty insurer that has achieved improved underwriting margins and expense discipline through a multi-year turnaround. We own AIG for its strong underwriting results and attractive valuation. AIG underperformed in the first quarter, as shares fell on the announcement that CEO Peter Zaffino would step down mid-year with Aon executive Eric Andersen taking over. Eric Andersen officially joined the company on February 16 with no further senior leadership changes. Management reaffirmed Investor Day targets including low-to-mid teens premium growth in 2026.”
American International Group, Inc. (NYSE:AIG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 52 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the fourth quarter, up from 43 in the previous quarter. While we acknowledge the risk and potential of American International Group, Inc. (NYSE:AIG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than American International Group, Inc. (NYSE:AIG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered American International Group, Inc. (NYSE:AIG) and shared the list of high dividend stocks picked by billionaire Ray Dalio. In addition, please check out our hedge fund investor letters Q1 2026 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.
