( AIG and other stock prices brought current in this update.)NEW YORK ( TheStreet) -- American International Group ( AIG) was among several winners of the financial sector Tuesday after a top mutual fund manager increased his stake in the insurer. AIG shares rose after Fairholme Capital Management, a mutual fund headed by Bruce Berkowitz, disclosed in a regulatory filing late Monday that it owns more than 32.79 million shares of the insurer, or 24.3% of AIG's outstanding stock. That's up from an 18.9% stake the fund reported in May.
Flagstar Bancorp ( FBC) was another top performer of the financial sector Tuesday after the bank said late Monday it has regained compliance with the New York Stock Exchange's minimum bid price requirement, a listing rule that says a stock must maintain a closing price of $1 or higher for 30 consecutive trading sessions. Flagstar Bancorp shares were surging by 32 cents, or 10.2%, to $3.46. Mortgage insurance stocks were also on the rise, with The PMI Group ( PMI) rallying 9.1% to $3.37, Radian Group ( RDN) rising 5.5% to $8.51, and MGIC Investment ( MTG) up 2.5% to $8.06. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.