Anthony Scaramucci, Founder and Managing Partner at SkyBridge Capital says there's a surprising stock that's now the darling of Wall Street's smartest investors.
If you said in the depths of the financial crisis that AIG would among the most loved stocks on The Street, you'd be the subject of intense ridicule.
Yet oddly, that's exactly what is happeneing now.
According to Anthony Scaramucci, Founder and Managing Partner at SkyBridge Capital, hedge funds - long considered the most savviest of investors - are now in love with AIG.
Half a decade ago, the AIG’s future was uncertain. The company was on the hook for insuring trillions of dollars of risky mortgage-related debt. When the housing market went bust, their books were ground zero for the ensuing financial fallout.
So, in exchange for providing $182 billion to support AIG, Uncle Sam (aka Joe Tax Payer) and the Federal Reserve Bank and US Treasury received a huge chunk of the company. By the end of last year, Uncle Sam sold the last of its stake, making a $22.7 billion profit in the process.
And the gains kept on coming.
Over the last two years, the stock is up more than 50% and, since the start of 2013, it’s up nearly 24%. Scaramucci and other fund managers believe there’s more to come.
“This is a hugely profitable business,” says Scaramucci. “[Its] global insurance footprint [is] raking in premiums from around the world.”
Scaramucci says he’s not alone in liking AIG and cites Daniel Loeb of Third Point and Leon Cooperman of Omega Advisors as large investors. “This is going to be a blockbuster, blue-chip name over the next five to ten years,” says Scaramucci.
So how high does he see the stock going? Watch the video above to find out.