Bloomberg News

SAC Capital, D.E. Shaw Boost Holdings of Bailed-Out AIG

May 15, 2012

SAC Capital Advisors LP, the hedge fund run by Steven Cohen, increased its stake in American International Group Inc. (AIG:US) as the U.S. government sold shares of the bailed-out insurer.

SAC Capital added 4.4 million shares of New York-based AIG, giving it 4.5 million as of March 31, according to a regulatory filing today from the Stamford, Connecticut-based fund. D.E. Shaw & Co., the New York-based hedge fund that uses computer models to pick trades, increased its stake by 2.2 million shares to 5.5 million, its filing shows.

AIG’s shares increased (AIG:US) 33 percent in the first quarter as the insurer repaid part of its U.S. government rescue and bought back stock. The insurer has sold assets including a stake in Hong Kong-based insurer AIA Group Ltd. (1299) to raise funds to cut the Treasury’s stake, which stands at about 60 percent.

“There are some people that think that will continue to go very smoothly and the overhang of the government share sales will go away more quickly than perhaps we thought,” Paul Newsome, an analyst at Sandler O’Neill & Partners LP, said in a a telephone interview.

Hotchkis & Wiley Capital Management LLC, a Los Angeles- based money manager, added 8.6 million AIG shares last quarter, boosting its stake to 14.3 million, while Tradewinds Global Investors LLC, a unit of Chicago-based Nuveen Investments Inc., sold 13.6 million shares, or about two-thirds of its holdings, filings show.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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Companies Mentioned

  • AIG
    (American International Group Inc)
    • $56.08 USD
    • 0.19
    • 0.34%
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