Should you invest in American Equity Investment Life Holding Company (AEL)?

Investment management company First Pacific Councilors recently released its Q2 2022 Queens Road Small Cap Value Fund Investor Letter. A copy of it may be downloaded here. During the quarter, the fund outperformed its benchmark and returned -11.46%, compared to a return of -15.28% for the Russell 2000 Value Index. Additionally, you can check out the fund’s top 5 holdings for its top picks in 2022.

In the second quarter letter to investors, First Pacific Advisors discussed stocks like American Equity Investment Life Holding Company (NYSE:AEL). Based in West Des Moines, Iowa, American Equity Investment Life Holding Company (NYSE:ALE) is a United States-based life insurance company. On August 26, 2022, American Equity Investment Life Holding Company (NYSE:AEL) stock closed at $37.61 per share. American Equity Investment Life Holding Company’s (NYSE:AEL) one-month return was 0.35% and its shares have gained 18.23% in value over the past 52 weeks. American Equity Investment Life Holding Company (NYSE: AEL) has a market capitalization of $3.296 billion.

Here is what First Pacific Advisors specifically said about American Equity Investment Life Holding Company (NYSE:AEL):

“American Equity Investment Life Holding Company (NYSE: AEL), a leading writer of fixed index annuities, continued its transition to its American Equity Investment (AEL) 2.0 business model. The main objectives of the plan are to diversify the company’s assets into a wider range of investments, including private debt through strategic partnerships, and to increase its reliance on reinsurance to free up capital. We think it’s an interesting, but somewhat aggressive plan. The results so far have been impressive, but we continue to monitor the credit quality of their assets as they progress towards their goal of having 40% of their portfolio invested in private assets, up from 15 .4% previously.”

American Equity Investment Life Holding Company (NYSE:AEL) is not on the list of 30 most popular stocks among hedge funds. American Equity Investment Life Holding Company (NYSE:AEL) was owned by 14 hedge fund portfolios at the end of the second quarter, up from 17 in the prior quarter.

We discussed American Equity Investment Life Holding Company (NYSE:AEL) in another article and shared First Pacific Advisors’ view of the company in the prior quarter. You can consult our Letters to Hedge Fund Investors Q2 2022 page for more letters from hedge fund investors and other leading investors.

Disclosure: none. This article originally appeared on Insider Monkey.

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