Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Mid-Cap Value Fund returned -5.63% in the first quarter, underperforming the Russell Midcap Value Index’s -2.11% return. US mid-cap stocks surged post-Presidential elections due to potential benefits of deregulation, lower corporate taxes, and accelerated growth. However, Q1 2025 saw a decline due to tariffs, high inflation, and weak macroeconomic factors, causing the Russell Midcap Index to decline by -3.4% and the Russell Midcap Value Index by -2.1% vs. a decline of -7.1% for the Russell Midcap Growth Index. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks such as American International Group, Inc. (NYSE:AIG). American International Group, Inc. (NYSE:AIG) is an insurance company that operates through North America Commercial, International Commercial, and Global Personal segments. The one-month return of American International Group, Inc. (NYSE:AIG) was 6.24%, and its shares gained 7.03% of their value over the last 52 weeks. On May 16, 2025, American International Group, Inc. (NYSE:AIG) stock closed at $84.33 per share with a market capitalization of $48.602 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q1 2025 investor letter:
“American International Group, Inc. (NYSE:AIG) is a leading commercial insurance company, providing property-casualty insurance, life insurance, and risk management products. Over the quarter, shares of AIG rose after the insurer authorized the repurchase of $7.5 bn of common stock and announced an ambitious 2025-2027 growth target for operating earnings per share. We believe AIG is poised for further improvements in operating performance. AIG has an improving return on equity and good management that is committed to smart allocation of its excess capital, which its current valuation does not fully reflect.”
A professional advisor helping a client with an insurance policy, highlighting the company’s attention to customer service.
American International Group, Inc. (NYSE:AIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the fourth quarter which was 49 in the previous quarter. While we acknowledge the potential of American International Group, Inc. (NYSE:AIG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
