AIG Alternatives Portfolio Profits Plunge

May 12 2008 | 10:09am ET

American International Group said its hedge fund investments were “a real laggard” in the first quarter. It wasn’t kidding.

The world’s largest insurer by assets said its alternative investments portfolio produced just $197 million in assets, a staggering 84% decline from the year-earlier period, when it earned $1.22 billion. AIG blamed the credit crisis for the weakened hedge fund and private equity performance.

Alternatives were not the only credit-crisis linked losses for AIG last quarter: The firm swung to a $7.81 billion loss on subprime- and housing market-linked losses. The insurer turned a $4.13 billion profit in the first quarter of last year.

About 3.5% of AIG’s investment portfolio, or $29.4 billion, is invested in alternatives.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...