Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Diamond Hill Capital highlighted a few stocks and American International Group Inc (NYSE:AIG) is one of them. American International Group is a finance and insurance company. Year-to-date, American International Group Inc (NYSE:AIG) stock lost 35.6% and on June 3rd it had a closing price of $33.25. Here is what Diamond Hill Capital said:
“Property and casualty insurance company American International Group, Inc. outperformed after we initiated a position late in the quarter. The company is in the middle stages of a turnaround in its property and casualty insurance business that has shown significant progress recently. We believe the current valuation fails to reflect the strong improvements made thus far, the improved risk profile of the company, and the excellent management team executing the turnaround.”
In Q1 2020, the number of bullish hedge fund positions on American International Group Inc (NYSE:AIG) stock decreased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with AIG’s growth potential. Our calculations showed that American International Group Inc (NYSE:AIG) isn’t among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
