This week’s Alpha Algorithm generated a recommendation that has underperformed the broader market in 2016, but has picked up substantial momentum over the past month or so.
Founded in 1919 and based in New York, New York, American International Group, Inc. (AIG) provides insurance products and services for commercial, institutional and individual customers in the Americas, the Asia Pacific, Europe, the Middle East and Africa.
AIG versus S&P 500 over the past month
Six Top Investment Strategies Betting on American International Group, Inc. (AIG)
1.Insider Buying
AIG is among the U.S. stocks that corporate officers, directors and shareholders who own more than 5% of each company’s shares are accumulating.
2. Large-Cap Growth
The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.
3. Shareholder Yield
Company: (a) pays cash dividends, (b) engages in net share repurchases, and (c) pays down debt on its balance sheets.
4. Hedge Fund Gurus
The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.
5. Momentum Factor
The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return
6. Small-Cap/Value Tilt
Selected using a multi-factor modeling approach, the stock is one of smaller-cap and value stocks designed to enhance portfolio risk/return characteristics.
Recommendation
Buy American International Group, Inc. (AIG) at market today. Place your initial stop at $50.
Options
With the stock technically overbought on the short term, I am holding off on recommending options this week.
Portfolio Update
We were caught by the unexpected drop in Apple (AAPL) earnings announced yesterday.
Nevertheless, the stock remains a holding in six Alpha Algorithm strategies, as of yesterday.
Although the stock is far above your stop price of $91.00, we’ll be keeping a close eye on how the various strategies handle the recent pullback.
Sincerely,
Nicholas A. Vardy
