Andvari Associates, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the nine months of 2024, the portfolio appreciated 20.3% net of fees while the SPDR S&P 500 ETF rose 21.9%. Andvari’s net performance started to catch up with the market in July and August. Investors switched from the biggest and best-performing S&P stocks to several of Andvari holdings that had been underperforming the market. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Andvari Associates highlighted stocks like Arthur J. Gallagher & Co. (NYSE:AJG) in the third quarter 2024 investor letter. Arthur J. Gallagher & Co. (NYSE:AJG) provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services. The one-month return of Arthur J. Gallagher & Co. (NYSE:AJG) was 5.45%, and its shares gained 27.11% of their value over the last 52 weeks. On December 4, 2024, Arthur J. Gallagher & Co. (NYSE:AJG) stock closed at $307.26 per share with a market capitalization of $67.24 billion.
Andvari Associates stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its Q3 2024 investor letter:
“Arthur J. Gallagher & Co. (NYSE:AJG) and Rollins are two other serial acquirers in Andvari’s client portfolios. Both are some of the largest, and best, businesses in their respective industries. AJG is a leading property and casualty insurance and reinsurance broker. Rollins is home to many of the top brands in the pest service industry in North America.
Importantly, while both AJG and Rollins have large market shares, their respective markets are still highly fragmented. There are thousands of small and medium-sized businesses left for AJG and Rollins to acquire. Gallagher currently has a pipeline of 100 potential acquisitions that represents about $1.4 billion of annualized revenue (compare this to $10.1 billion of revenues for 2023). Andvari believes the pace of acquisitions for both companies can continue for many years to come. Just see below the acquisition track records of both companies since 2014…”(Click here to read the full text)
An insurance broker talking to a client, demonstrating the trust of their services.
Arthur J. Gallagher & Co. (NYSE:AJG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Arthur J. Gallagher & Co. (NYSE:AJG) at the end of the third quarter which was 42 in the previous quarter. In the third quarter, Arthur J. Gallagher & Co. (NYSE:AJG) posted 12% growth in revenue. While we acknowledge the potential of Arthur J. Gallagher & Co. (NYSE:AJG) 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 Arthur J. Gallagher & Co. (NYSE:AJG) and shared the list of best insurance brokerage stocks to invest in. 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.
