Are AIG’s Heaviest Institutional Investors Buying More Stock in Anticipation of Greater Company Buybacks?

In 2012, shares of American International Group (NYSE:AIG) are generating over a 32% return to investors. Analysts over at Deutsche Bank think the insurance goliath will buy back more of its shares and even quicker than most outside observers are estimating. The banking analysts project buybacks totaling in the range of $15-$20 Billion over the next year. Buybacks are generally good for shareholders. The supply of AIG shares on the market will be reduced and the stock price could see a lift if earnings numbers are relatively good this year. Are AIG’s biggest shareholders buying more stock after the Deutsche Bank forecast release?

297 institutional firms indicated owning shares of American International Group, Inc. (NYSE:AIG) in both Q3 2011 and Q4 2011. These firms reported owning a total of 323.859 million shares on 09/30/2011 and 317.523 million shares on 12/31/2011. The shares closed at $21.95 on 09/30/2011 and $23.20 on 12/31/2011, for an aggregate market value of $7.109 billion and $7.367 billion, respectively.

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Here are the ten largest positions in AIG’s stock as of the end of December 31st, 2011.

FAIRHOLME CAPITAL MANAGEMENT LLC held 101,481,743 shares on 09/30/2011 which were worth $2,227,524,259. On 12/31/2011 the firm held 92,044,583 shares worth $2,135,434,326. This represented a reduction of 9,437,160 shares or $92,089,933.

TRADEWINDS GLOBAL INVESTORS LLC held 20,857,806 shares on 09/30/2011 which were worth $457,828,842. On 12/31/2011 the firm held 20,518,557 shares worth $476,030,522. This represented a reduction of 339,249 shares or $18,201,681.

VANGUARD GROUP INC held 17,081,166 shares on 09/30/2011 which were worth $374,931,594. On 12/31/2011 the firm held 17,275,089 shares worth $400,782,065. This represented an increase of 193,923 shares or $25,850,471.

FRANKLIN RESOURCES INC held 17,671,034 shares on 09/30/2011 which were worth $387,879,196. On 12/31/2011 the firm held 16,586,854 shares worth $384,815,013. This represented a reduction of 1,084,180 shares or $3,064,184.

STATE STREET CORP held 15,946,694 shares on 09/30/2011 which were worth $350,029,933. On 12/31/2011 the firm held 16,490,377 shares worth $382,576,746. This represented an increase of 543,683 shares or $32,546,813.

MACKENZIE FINANCIAL CORP held 15,302,259 shares on 09/30/2011 which were worth $335,884,585. On 12/31/2011 the firm held 15,336,452 shares worth $355,805,686. This represented an increase of 34,193 shares or $19,921,101.

BLACKROCK INSTITUTIONAL TRUST COMPANY N.A. held 10,536,272 shares on 09/30/2011 which were worth $231,271,170. On 12/31/2011 the firm held 11,253,923 shares worth $261,091,014. This represented an increase of 717,651 shares or $29,819,843.

WELLINGTON MANAGEMENT CO LLP held 9,912,000 shares on 09/30/2011 which were worth $217,568,400. On 12/31/2011 the firm held 11,145,308 shares worth $258,571,146. This represented an increase of 1,233,308 shares or $41,002,746.

PZENA INVESTMENT MANAGEMENT LLC held 7,802,059 shares on 09/30/2011 which were worth $171,255,195. On 12/31/2011 the firm held 7,867,659 shares worth $182,529,689. This represented an increase of 65,600 shares or $11,274,494.

GLENVIEW CAPITAL MANAGEMENT LLC held 7,967,653 shares on 09/30/2011 which were worth $174,889,983. On 12/31/2011 the firm held 7,269,556 shares worth $168,653,699. This represented a reduction of 698,097 shares or $6,236,284.

About the company: American International Group, Inc. is a holding company which, through its subsidiaries provides a varied range of insurance and insurance-related activities in the United States and abroad. The Company’s main activities include both general insurance and life insurance & retirement services operations as well as financial services and asset management.

To contact the reporter on this story: Alex Capel at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com