A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on American International Group Inc (NYSE:AIG).
American International Group Inc (NYSE:AIG) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. American International Group Inc (NYSE:AIG) was in 33 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 101. Our calculations also showed that AIG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Phillip Gross of Adage Capital
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Do Hedge Funds Think AIG Is A Good Stock To Buy Now?
At Q1’s end, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the previous quarter. On the other hand, there were a total of 43 hedge funds with a bullish position in AIG a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
The largest stake in American International Group Inc (NYSE:AIG) was held by Diamond Hill Capital, which reported holding $914.9 million worth of stock at the end of December. It was followed by Pzena Investment Management with a $819.3 million position. Other investors bullish on the company included First Pacific Advisors LLC, Hosking Partners, and Adage Capital Management. In terms of the portfolio weights assigned to each position First Pacific Advisors LLC allocated the biggest weight to American International Group Inc (NYSE:AIG), around 5.99% of its 13F portfolio. Diamond Hill Capital is also relatively very bullish on the stock, setting aside 3.7 percent of its 13F equity portfolio to AIG.
Because American International Group Inc (NYSE:AIG) has experienced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedgies that slashed their entire stakes heading into Q2. Interestingly, Dmitry Balyasny’s Balyasny Asset Management dropped the largest position of all the hedgies tracked by Insider Monkey, totaling close to $19.2 million in stock. Sander Gerber’s fund, Hudson Bay Capital Management, also sold off its stock, about $8.3 million worth. These transactions are interesting, as total hedge fund interest fell by 8 funds heading into Q2.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as American International Group Inc (NYSE:AIG) but similarly valued. We will take a look at Digital Realty Trust, Inc. (NYSE:DLR), HP Inc. (NYSE:HPQ), Veeva Systems Inc (NYSE:VEEV), Amphenol Corporation (NYSE:APH), Trane Technologies plc (NYSE:TT), T. Rowe Price Group, Inc. (NASDAQ:TROW), and Electronic Arts Inc. (NASDAQ:EA). All of these stocks’ market caps match AIG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DLR | 22 | 296357 | -1 |
| HPQ | 43 | 1526496 | 4 |
| VEEV | 39 | 966072 | 3 |
| APH | 42 | 1077461 | 1 |
| TT | 35 | 1092597 | 1 |
| TROW | 26 | 303927 | -9 |
| EA | 44 | 1430436 | -6 |
| Average | 35.9 | 956192 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 35.9 hedge funds with bullish positions and the average amount invested in these stocks was $956 million. That figure was $2471 million in AIG’s case. Electronic Arts Inc. (NASDAQ:EA) is the most popular stock in this table. On the other hand Digital Realty Trust, Inc. (NYSE:DLR) is the least popular one with only 22 bullish hedge fund positions. American International Group Inc (NYSE:AIG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for AIG is 31.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 22.8% in 2021 through July 2nd and surpassed the market again by 6 percentage points. Unfortunately AIG wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); AIG investors were disappointed as the stock returned 4.6% since the end of March (through 7/2) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow American International Group Inc. (NYSE:AIG)
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Disclosure: None. This article was originally published at Insider Monkey.
