Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although there was some volatility, markets contributed to strong year-to-date gains in Q3. US stocks increased by 6%, as measured by the Russell 3000 Index, with small- and mid-cap equities accounting for most gains. This is a significant change. The strategy outperformed the Russell 1000 Index in Q3 and returned 7.84% (net) vs 6.08% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Large Cap Strategy highlighted stocks like Aon plc (NYSE:AON), in the third quarter 2024 investor letter. Aon plc (NYSE:AON) offers a range of risk and human capital solutions. The one-month return of Aon plc (NYSE:AON) was 3.90%, and its shares gained 17.91% of their value over the last 52 weeks. On November 22, 2024, Aon plc (NYSE:AON) stock closed at $386.21 per share with a market capitalization of $83.524 billion.
Diamond Hill Large Cap Strategy stated the following regarding Aon plc (NYSE:AON) in its Q3 2024 investor letter:
“We continue finding compelling new ideas, even as the bull market proceeds. In Q3, we initiated three new positions in Aon plc (NYSE:AON), Accenture and Builders FirstSource. Aon, one of the world’s leading insurance brokers and consultants, has an excellent track record of growing free cash flow per share. Looking forward, as it fully integrates its acquisition of NFP, which had been a leading middle market broker and consultant, we believe Aon has an attractive opportunity to accelerate its growth rate. With shares trading at an attractive discount to our estimate of intrinsic value, we capitalized on the opportunity to initiate a position in this high-quality company.”
A group of multi-cultural professionals discussing the future of insurance services in a modern office.
Aon plc (NYSE:AON) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the third quarter which was 54 in the previous quarter. Aon plc (NYSE:AON) posted 7% total organic revenue growth in the third quarter. While we acknowledge the potential of Aon plc (NYSE:AON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Aon plc (NYSE:AON) and shared Polen Global Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.