Diamond Hill Capital, an investment management firm, released its Q4 2025 “Large Cap Fund” investor letter. A copy of the letter can be downloaded here. Stock markets continued their bullish momentum in the fourth quarter, with the Russell 1000 Value Index rising 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. Market growth areas accounted for the majority of the index’s performance in the fourth quarter. The company maintains a cautious stance toward AI-driven market excitement and believes that fundamentally stable, high-quality, cash-generating businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% for the quarter, lagging the 3.8% return of the Russell 1000 Value Index. Additionally, you can check out the Fund’s top five holdings to see your top picks for 2025.
In its Q4 2025 investor letter, Diamond Hill Large Cap Fund highlighted American International Group, Inc. (NYSE:AIG) as one of its top contributors. American International Group, Inc. (NYSE:AIG) is an insurance company that operates through the North American Commercial, International Commercial and Global Personal segments. American International Group, Inc. (NYSE:AIG)’s monthly performance was -5.32% and its shares gained 1.65% of its value over the past 52 weeks. On February 2, 2026, American International Group, Inc. (NYSE:AIG) stock closed at $73.92 per share, with a market capitalization of $40.952 million.
Diamond Hill Large Cap Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q4 2025 investor letter:
“Property and casualty insurer American International Group, Inc. (NYSE:AIG) reported better-than-expected earnings, with strong expense management and share buybacks offsetting a weakened pricing environment. “The stock also benefited from reports that insurer Chubb is exploring a potential acquisition of the company.”
American International Group, Inc. (NYSE:AIG) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 43 hedge fund portfolios owned American International Group, Inc. (NYSE:AIG) at the end of the third quarter, compared to 52 in the previous quarter. While we recognize 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’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.