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The Morning Brief: AIG to Dump Half its Hedge Funds

American International Group plans to unload at least half of its hedge fund portfolio, according to Bloomberg. This means it will liquidate investments of at least 50 of the 100 hedge funds valued at about $11 billion in which it has investments, according to the report. The insurance giant fears increased volatility among high-risk assets and a period of limited liquidity in the financial markets. “We had a very negative experience in hedge funds,” chief executive officer Peter Hancock said at a January 26 investor presentation, according to the report. Altogether, AIG’s investment portfolio has more than $340 billion, mostly in bonds.

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Will Smith and Jean-Louis Le Mee have launched a new hedge fund firm, Westbrook Asset Management, designed to take advantage of a possible rebound in the price of oil, according to Reuters. Smith was formerly a portfolio manager at London-based CQS, while Le Mee was a partner at BlueGold Capital, a defunct London firm, according to the report.

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Deutsche Bank cut its price target on reeling alternative energy company SunEdison, from $9 to $6.50. However, it maintained its buy rating on the stock. “Investor expectations are generally low and outstanding overhangs could be in the rearview mirror” over the next three to six months, the bank tells clients in a note. The stock, which is down roughly 50 percent this year alone, surged 6.28 percent, to close at $2.63 on Tuesday after falling as low as $2.37 during the trading session. Volume was very light, just a little over one-fifth of its average daily trading volume.

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One day after the stocks were in free fall, shares of Williams Cos. and Energy Transfer Equity enjoyed healthy rebounds. The stocks jumped 7.35 percent and nearly 13 percent, respectively, on Tuesday.

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Shares of Outerwall dropped 10 percent, to $27.01, one day after activist investor Engaged Capital raised its stake in the company to more than 14 percent of the total outstanding. The company is best known for its Redbox movie rentals and Coinstar cash exchange kiosks.

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Two Sigma filed a revised version of its 13F stock holdings for the quarter ended June 2014, the quarter ended September 2014 and the period ended June 30, 2015 to correct the previously filed document. “Due to technical errors, certain positions were incorrectly stated,” the filings note.

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