Hotchkis & Wiley, an investment management company, recently released its first-quarter 2025 investor letter for the Hotchkis & Wiley Mid-Cap Value Fund. The fund reported a return of -5.63% in the first quarter, underperforming the Russell Midcap Value Index. The decline in mid-cap stocks was attributed to factors such as tariffs, high inflation, and weak macroeconomic conditions.
One of the highlighted stocks in the investor letter was American International Group, Inc. (NYSE:AIG), an insurance company operating in various segments. The stock had a one-month return of 6.24% and has gained 7.03% in the last 52 weeks. As of May 16, 2025, American International Group, Inc. (NYSE:AIG) closed at $84.33 per share with a market capitalization of $48.602 billion.
Hotchkis & Wiley Mid-Cap Value Fund expressed optimism about American International Group, Inc. (NYSE:AIG) in its investor letter. The insurer recently authorized the repurchase of $7.5 billion of common stock and announced a growth target for operating earnings per share. The fund believes that AIG is well-positioned for further improvements in operating performance, with good management committed to smart capital allocation.
While American International Group, Inc. (NYSE:AIG) may not be among the 30 most popular stocks among hedge funds, the fund sees potential in the stock for delivering higher returns. For investors looking for promising AI stocks with significant upside potential, Hotchkis & Wiley suggests exploring opportunities beyond traditional picks like NVIDIA.
Overall, the Hotchkis & Wiley Mid-Cap Value Fund’s investor letter provides valuable insights into the performance of American International Group, Inc. (NYSE:AIG) and other key holdings. Investors interested in mid-cap value opportunities can refer to the fund’s top five holdings for more information.
