Here’s Why You Should Consider Buying American Equity Investment (AEL) Shares

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned American Equity Investment Life Holding Company (NYSE: AEL) and discussed its stance on the firm. American Equity Investment Life Holding Company is a West Des Moines, Iowa-based life insurance company with a $3.7 billion market capitalization. AEL delivered a -1.31% return since the beginning of the year, while its 12-month returns are up by 32.77%. The stock closed at $38.41 per share on March 03, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about American Equity Investment Life Holding Company in its Q4 2021 investor letter:

American Equity Investment Life Holding Company, a leading writer of fixed index annuities, continued expanding its channel distribution to increase sales and made progress on expanding its interest spread. Several strategic relationships were announced during the year which benefited the company in 2021 and we expect the benefits to expand over the next several years.”

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Our calculations show that American Equity Investment Life Holding Company (NYSE: AEL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. AEL was in 21 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. American Equity Investment Life Holding Company (NYSE: AEL) delivered an 8.87% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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