We recently learned that the hedge fund industry’s new favourite stock is AIG, the beleaguered insurance behemoth that was at the centre of the financial crisis.
At the end of the fourth quarter, 117 funds were holding the stock, and it was a top-10 holding for 80 of those funds, said Goldman Sachs in a new report.
Retail investors, however, have shied away from the stock.
But the ballsy bets laid down by the hedge fund industry seem to be paying off. Yesterday, AIG announced an unexpected Q4 operating profit, and now the stock is up.
Here’s AIG’s chart from MarketWatch, which captures all of the moves since yesterday’s close: