Here’s Why Headwaters Capital Invested in American Financial Group (AFG)

Investment management company Headwaters Capital recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund declined by -20.5% compared to a -16.9% decline for the Russell Mid Cap index. High energy prices as a result of the Russian invasion affected the performance of the portfolio. You can check the top 5 holdings of the fund to know its best picks in 2022.

Headwaters Capital discussed stocks like American Financial Group, Inc. (NYSE:AFG) in the second quarter investor letter. Headquartered in Cincinnati, Ohio, American Financial Group, Inc. (NYSE:AFG) is an insurance holding company. On August 22, 2022, American Financial Group, Inc. (NYSE:AFG) stock closed at $130.92 per share. One-month return of American Financial Group, Inc. (NYSE:AFG) was -2.42% and its shares lost 4.06% of their value over the last 52 weeks. American Financial Group, Inc. (NYSE:AFG) has a market capitalization of $11.149 billion.

Here is what Headwaters Capital specifically said about American Financial Group, Inc. (NYSE:AFG):

“American Financial Group, Inc. (NYSE:AFG) returned +1% (inclusive of an $8 special dividend paid during the quarter). Underwriting returns continue to be strong across almost all of the company’s specialty lines of business. Returns from the company’s investment portfolio, specifically investments in real estate funds, have also been very strong. Going forward, AFG’s investment portfolio should benefit from higher interest rates as it has strategically repositioned its fixed income portfolio into shorter duration assets over the last year.”

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American Financial Group, Inc. (NYSE:AFG) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, American Financial Group, Inc. (NYSE:AFG) was held by 24 hedge fund portfolios at the end of the first quarter, which was 28 in the previous quarter.

We discussed American Financial Group, Inc. (NYSE:AFG) in another article and shared Daniel Johnson’s Gillson Capital’s list of best financial services and bank stocks to buy. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.