Hedge fund titan Dan Loeb reports Alibaba stake, dumps AIG

Below is the news I recently read recently:

"Hedge fund titan Dan Loeb's Third Point LLC picked up 7.2 million shares of Chinese e-commerce giant Alibaba BABA in the third quarter, a stake worth $639.7 million as of Sept. 30, according to a regulatory filing on Friday. Funds are required to disclose long positions in 13F filings with the Securities and Exchange Commission 45 days after the end of each quarter. Alibaba marked Loeb's largest new stake, equal to 7.3% of his portfolio, according to Whalewisdom.com. Dow Chemical DOW remained Loeb's largest position at 22 milion shares, with a Sept. 30 market value of $1.154 billion. Loeb also acquired 4.5 million shares of Ebay EBAY worth $254.8 million, while unloading his entire 6 million share stake in American International Group AIG as well as entire stakes in Hertz HTZ and T-mobile."

So, question: Should you follow famed investors to buy and sell stocks?

Introducing American International Group Inc (AIG)

Company Profile:
American International Group, Inc. (US stock quote AIG) provides insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in two segments: AIG Property Casualty, and AIG Life and Retirement. The AIG Property Casualty segment offers casualty insurance products that cover general liability, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance; industrial energy-related and commercial property insurance products, which cover exposures to man-made and natural disasters; aerospace, environmental, political risk, trade credit, surety and marine insurance products for small and medium sized enterprises; and various forms of professional liability insurance products. It also provides personal accidental and supplemental health products for individuals, employees, associations, and other organizations; and life products, as well as a range of travel insurance products and services for leisure and business travelers. This segment distributes its insurance products and services through brokers, agents, and direct marketing and partner organizations, as well as the Internet. The AIG Life and Retirement segment offers a suite of products and services to individuals and groups, including term life insurance, universal life insurance, accident and health insurance, fixed and variable group annuities, administrative and compliance services, mutual funds, and financial planning. This segment distributes its products through banks, broker-dealers, financial advisors, independent marketing organizations, insurance agents, structured settlement brokers, benefit consultants, and direct-to-consumer platforms. The company also provides private residential mortgage guaranty insurance and direct investment book services; and derivatives intermediary services.

Financials & Outlook:
Last traded = US$55.32
Market Capital = US$78.54B
Current P/E = 9.08
P/S = 1.16
Dividend Yield = 0.9%
Beta =
Quick ratio = -
Debt/Equity    = 0.36
P/B    = 0.74
P/Cash = 43.2
P/FCF = 15.04
ROE    = 8.6%
Profit Margin = 13%
Div Payout ratio = 7.4%
The technicals show strong support at about  (BUT doesn't mean the stock will fall to this price). 

AIG has come a long way since 2009 when it nearly collapsed after Lehman's crisis saved only by US government's bailout and it seemed to have recovered very nicely.   
AIG will benefit from impeding increase in Fed rate in late 2015...
As this is a very interest rate sensitive stock, any small increase in Fed rate will have big benefits to AIG. 
I would rate this as a strong buy now.