Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s investor class returned 1.14% in the first quarter, compared to a -4.27% return for the S&P 500 Index. The fund has returned 12.76% since its inception compared to the index return of 10.44% over the same period. The largest contributors to the fund for the quarter were financials and consumer staples while consumer discretionary and communication services detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first quarter 2025 investor letter, Oakmark Fund emphasized 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 -2.04%, and its shares gained 12.91% of their value over the last 52 weeks. On April 15, 2025, American International Group, Inc. (NYSE:AIG) stock closed at $81.95 per share with a market capitalization of $47.84 billion.

Oakmark Fund stated the following regarding American International Group, Inc. (NYSE:AIG) in its Q1 2025 investor letter:

"American International Group, Inc. (NYSE:AIG) was the top contributor during the quarter. The company reported improved premium growth, strong underwriting results, and significant capital return during the period. We expect these trends to continue, which has the potential to lead to strong EPS (earnings per share) growth and improved returns. Over time, we expect the company’s return on equity to converge with peer levels. As returns continue to improve, we expect the valuation discount to the industry’s top peers to narrow."

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 cheapest AI stock.

We covered American International Group, Inc. (NYSE:AIG) in another article, where we shared top stock picks from Diamond Hill Capital. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.