Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy underperformed the Russell 1000 Index. With the revival of growth and technology stocks, the strategy’s underweight exposure to the sector was a headwind on the relative performance. Technology and communication services holdings of the strategy collectively performed well but did not keep pace with those in the index. It benefited from the strength of investments in the materials and consumer discretionary sectors. The strategy returned 6.04% (net) in the quarter compared to 8.58% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Large Cap Strategy highlighted stocks like American International Group, Inc. (NYSE:AIG) in the second quarter 2023 investor letter. Headquartered in New York, New York, American International Group, Inc. (NYSE:AIG) is an insurance company. On September 14, 2023, American International Group, Inc. (NYSE:AIG) stock closed at $61.20 per share. One-month return of American International Group, Inc. (NYSE:AIG) was 5.61%, and its shares gained 14.07% of their value over the last 52 weeks. American International Group, Inc. (NYSE:AIG) has a market capitalization of $43.568 billion.
Diamond Hill Large Cap Strategy made the following comment about American International Group, Inc. (NYSE:AIG) in its Q2 2023 investor letter:
“Among our top contributors were insurance company American International Group, Inc. (NYSE:AIG), auto retailer CarMax and global online retailer Amazon.
AIG reported solid quarterly results for its fiscal Q1, consistent with our thesis that the company is now in the middle stages of a successful turnaround in its P&C insurance business that we believe still has meaningful runway for improvement. AIG also announced the expected sale of Validus Re (property catastrophe reinsurance) to RenaissanceRe, a transaction we view as mutually beneficial as it transfers the assets to an entity that can create the most value with the intellectual property and customer relationships. The sale is also consistent with AIG’s longer-term path of reducing underwriting volatility. The proceeds from the sale, along with an additional share sale of its ownership stake in CRBG (the holding company for its life and retirement business), will generate a nice cash flow for the company, which it intends to use to repurchase stock.”
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American International Group, Inc. (NYSE:AIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of second quarter which was 46 in the previous quarter.
We discussed American International Group, Inc. (NYSE:AIG) in another article and shared the list of stocks with lowest short interest. In addition, please check out our hedge fund investor letters Q2 2023 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.
