Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Select Strategy”. A copy of the letter can be downloaded here. The Strategy declined 0.52% (net of fees), surpassing the Russell 3000 Index’s 3.96%. The performance was driven by stock selection and overweight exposure in industrials, along with an underweight in information technology. Geopolitical developments and changing expectations regarding artificial intelligence (AI) are impacting market dynamics this quarter. The firm is assessing the heightened uncertainty from the situation in the Middle East while also seeking attractive investment opportunities in large-cap, high-quality, cash-generative, and defensive businesses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Select Strategy highlighted American International Group, Inc. (NYSE:AIG). American International Group, Inc. (NYSE:AIG) is a global insurance corporation that offers property and casualty insurance and financial services. On June 8, 2026, American International Group, Inc. (NYSE:AIG) closed at $74.10 per share. One-month return of American International Group, Inc. (NYSE:AIG) was 3.01%, and its shares lost 12.13% over the past 52 weeks. American International Group, Inc. (NYSE:AIG) has a market capitalization of $39.29 billion.
Diamond Hill Select Strategy stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q1 2026 investor letter:
“Global property and casualty insurer American International Group, Inc. (NYSE:AIG) declined following a late-2025 rally driven by reports of a potential acquisition by Chubb. The company announced a CEO succession plan in early January, which led investors to believe a transaction was unlikely, removing the deal premium and causing shares to fall.”
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, 62 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the first quarter, up from 52 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 most undervalued stocks to invest in. In its Q1 2026 quarterly update, Hotchkis & Wiley Mid-Cap Value Fund cited the same reason for the decline of American International Group, Inc. (NYSE:AIG) during the quarter. 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.
