6. Arthur J. Gallagher & Co. (NYSE:AJG)
Number of Hedge Fund Holders as of Q4: 77
Balyasny Asset Management’s Equity Stake: $374.51 Million
Arthur J. Gallagher & Co. (NYSE:AJG) is a leading American insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Established in 1927, the company has grown into one of the largest insurance brokers globally, with over 56,000 employees providing services in more than 130 countries.
In the fourth quarter of 2024, Arthur J. Gallagher & Co. (NYSE:AJG) reported total revenue of $2.68 billion, slightly below analysts’ expectations of $2.69 billion. However, the company’s adjusted net earnings surged to $491.2 million, a significant increase from $402.4 million in the prior year. Adjusted earnings per share (EPS) reached $2.13, exceeding projections of $1.35. This impressive financial performance underscores the company’s resilience and ability to maintain profitability despite acquisition-related costs and workforce adjustments. The brokerage segment saw a 12% year-over-year revenue increase to $2.3 billion, while the risk management division experienced steady growth, reaching $369.4 million.
Arthur J. Gallagher & Co. (NYSE:AJG) continued its aggressive expansion strategy by completing 20 acquisitions in Q4 2024, adding an estimated annualized revenue of $387 million. Chairman and CEO J. Patrick Gallagher, Jr. highlighted the firm’s remarkable success, marking its 16th consecutive quarter of double-digit revenue growth, with organic revenue increasing by 7%. With a solid balance sheet and a clear focus on expansion, Arthur J. Gallagher & Co. (NYSE:AJG) remains well-positioned for continued success in the competitive insurance brokerage industry.
Investor confidence in the company is evident, as hedge funds have significantly increased their holdings in Arthur J. Gallagher & Co. By the end of Q4 2024, Balyasny Asset Management raised its stake in the company to nearly 1.32 million shares, a massive increase from just 2,478 shares in the previous quarter, bringing its investment value to approximately $374.54 million. Additionally, data from Insider Monkey reveals that 77 hedge funds held positions in the company by the end of Q4, up from 44 in the prior quarter, with total stakes valued at nearly $4.47 billion. These investment trends indicate strong institutional confidence in Arthur J. Gallagher & Co. (NYSE:AJG)’s growth potential.
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)
