Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Select Strategy”. A copy of the letter can be downloaded here. The Strategy declined 0.52% (net of fees), surpassing the Russell 3000 Index’s 3.96%. The performance was driven by stock selection and overweight exposure in industrials, along with an underweight in information technology. Geopolitical developments and changing expectations regarding artificial intelligence (AI) are impacting market dynamics this quarter. The firm is assessing the heightened uncertainty from the situation in the Middle East while also seeking attractive investment opportunities in large-cap, high-quality, cash-generative, and defensive businesses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Select Strategy highlighted American International Group, Inc. (NYSE:AIG). American International Group, Inc. (NYSE:AIG) is a global insurance corporation that offers property and casualty insurance and financial services. On June 8, 2026, American International Group, Inc. (NYSE:AIG) closed at $74.10 per share. One-month return of American International Group, Inc. (NYSE:AIG) was 3.01%, and its shares lost 12.13% over the past 52 weeks. American International Group, Inc. (NYSE:AIG) has a market capitalization of $39.29 billion.
Diamond Hill Select Strategy stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q1 2026 investor letter:
“Global property and casualty insurer American International Group, Inc. (NYSE:AIG) declined following a late-2025 rally driven by reports of a potential acquisition by Chubb. The company announced a CEO succession plan in early January, which led investors to believe a transaction was unlikely, removing the deal premium and causing shares to fall.”
American International Group, Inc. (NYSE:AIG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the first quarter, up from 52 in the previous quarter. While we acknowledge the potential of American International Group, Inc. (NYSE:AIG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
