Diamond Hill Capital, an investment management company, released its “Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in Q4, with the Russell 1000 Value Index increasing 3.8%. The information technology (+11%) and communication services (+9%) sectors are leading the rally, driven by AI optimism. The growth areas of the market accounted for the majority of the Index’s return in Q4. The firm maintains a cautious stance toward AI-driven market enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses present attractive opportunities. Against this backdrop, the Fund returned 1.41% in the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.
In its fourth-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted American International Group, Inc. (NYSE:AIG) as one of its leading contributors. 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 -5.32%, and its shares gained 1.65% of their value over the last 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 billion.
Diamond Hill Large Cap Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its fourth quarter 2025 investor letter:
“Property and casualty insurer American International Group, Inc. (NYSE:AIG) reported better-than-expected earnings, with strong expense management and share repurchases offsetting a weakening pricing environment. Shares also benefited from reports that fellow insurer Chubb is exploring a potential acquisition of the company.”
American International Group, Inc. (NYSE:AIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held American International Group, Inc. (NYSE:AIG) at the end of the third quarter, compared to 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.
