Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Q4 saw an uneven increase in markets, capping off yet another strong year for the markets. Stocks broadly increased after the US election, but some gave up most or all of those gains before the end of the year. Against this backdrop, the portfolio trailed the Russell 1000 Index in Q4 and for the full year. The fund returned -2.00% (net) in Q4 vs 2.75% for the index. For the full year, the fund returned 14.24% compared to 24.51% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Diamond Hill Large Cap Concentrated Fund emphasized stocks such as Aon plc (NYSE:AON). Aon plc (NYSE:AON) offers a range of risk and human capital solutions. The one-month return of Aon plc (NYSE:AON) was 3.05%, and its shares gained 24.71% of their value over the last 52 weeks. On March 14, 2025, Aon plc (NYSE:AON) stock closed at $398.79 per share with a market capitalization of $86.14 billion.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Aon plc (NYSE:AON) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon plc (NYSE:AON) and Waste Management.
Aon is one of the world’s largest insurance brokers and benefits consultants, and one of the only companies with the breadth of skills and knowledge to cater to and effectively serve large clients with complex risks. The insurance brokerage business produces steady, non-discretionary growth and requires minimal capital. Aon’s shares have recently taken a breather as investors digest the company’s recent acquisition of NFP — which we believe will add value over the long term. We consequently capitalized on an attractive valuation relative to Aon’s peers to initiate a position in the quarter.”
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 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the fourth quarter compared to 54 in the third quarter. For the full year, Aon plc’s (NYSE:AON) total revenue increased 17% to $16 billion, and delivered 6% organic revenue growth. 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 the list of best European stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q4 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.