Diamond Hill Capital released its fourth-quarter 2025 investor letter, noting the Russell 1000 Value Index rose 3.8% in Q4. Information technology and communication services sectors led the rally, driven by AI optimism. The firm remains cautious towards AI-driven market enthusiasm and sees opportunities in stable, cash-generative businesses.

In the letter, Diamond Hill Large Cap Fund highlighted American International Group, Inc. as a leading contributor. AIG, an insurance company, saw a one-month return of -5.32% and gained 1.65% in the last 52 weeks. On February 2, 2026, AIG stock closed at $73.92 per share, with a market cap of $40.952 billion.

Diamond Hill Large Cap Fund praised AIG’s better-than-expected earnings in Q4 2025, citing strong expense management and share repurchases offsetting a weakening pricing environment. Shares also benefited from reports of a potential acquisition by Chubb.

American International Group, Inc. is not among the 30 most popular stocks among hedge funds. While 43 hedge fund portfolios held AIG at the end of Q3, down from 52 in the previous quarter, the company shows potential as an investment. However, certain AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: Here’s What Lifted American International Group (AIG) in 2025