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” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, FPA Queens Road mentioned American Equity Investment Life Holding Company (NYSE:AEL) and explained its insights for the company. Founded in 1995, American Equity Investment Life Holding Company (NYSE:AEL) is a West Des Moines, Iowa-based life insurance company with a $3.7 billion market capitalization. American Equity Investment Life Holding Company (NYSE:AEL) delivered a 4.52% return since the beginning of the year, while its 12-month returns are up by 28.01%. The stock closed at $40.68 per share on June 01, 2022.

Here is what FPA Queens Road has to say about American Equity Investment Life Holding Company (NYSE:AEL) in its Q1 2022 investor letter:

“American Equity Investment Life Holding Company (NYSE:AEL), a leading writer of fixed index annuities, has continued to transition to its AEL 2.0 business model. The plan’s main goals are to diversify the company’s assets into a broader array of investments, including private debt through strategic partnerships, and to increase its use of reinsurance to free up capital. We think this is an interesting, but somewhat aggressive plan. Thus far, the results have been impressive, but we continue to monitor the credit quality of their assets as they move toward achieving their target of having 40% of their portfolio invested in private assets, up from 15%.”

Our calculations show that American Equity Investment Life Holding Company (NYSE:AEL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. American Equity Investment Life Holding Company (NYSE:AEL) was in 17 hedge fund portfolios at the end of the first quarter of 2022, compared to 21 funds in the previous quarter. American Equity Investment Life Holding Company (NYSE:AEL) delivered a 5.91% return in the past 3 months.

In March 2022, we also shared FPA Queens’s Q4 2021 views on American Equity Investment Life Holding Company (NYSE:AEL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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