Barron's: Warrants may be way to play AIG

• AIG has its own company-specific issues, but like other insurers has been punished by the plunge in interest rates, and is off about 10% this year.
• The company is moving forward, though, says portfolio manager John Heldman - cutting expenses and planning capital returns of about $25B (market cap is $60B) over the next two years (the dividend has tripled since 2013).
• He sees book value - currently around $60 per share - rising 15% annually over the next three to five years, helped along by improving results, a more normal level of reserves, and buybacks being done at a discount to book.
• If so, AIG could be a $100-$125 stock by 2020-21, meaning the TARP warrants - struck at $45, expiring in 2021, and trading just north of $19 each - could be easily be a double or a triple.