Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. After a significant decline in April following President Trump’s “Liberation Day” tariffs announcement, markets recovered and increased consistently for the remainder of the quarter. The strategy modestly trailed the Russell 1000 Value Index in the second quarter and returned 2.87% (net) vs 3.79% for the index. The financial and consumer discretionary holdings lagged, while healthcare and communication services outperformed, boosting overall performance. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.
In its second-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted 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 2.63%, and its shares gained 10.80% of their value over the last 52 weeks. On August 7, 2025, Aon plc (NYSE:AON) stock closed at $365.03 per share, with a market capitalization of $78.71 billion.
Diamond Hill Large Cap Fund stated the following regarding Aon plc (NYSE:AON) in its second quarter 2025 investor letter:
"Other bottom contributors in Q2 included Berkshire Hathaway and Aon plc (NYSE:AON). Aon is a global leader in insurance brokerage and consulting. Despite good organic revenue growth and margin expansion, investors appeared to be disappointed by the company’s medium term guidance, which in turn weighed on the share price in Q2."
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, 68 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the first quarter, which was 59 in the previous quarter. In the second quarter AON plc's (NYSE:AON) total revenue increased 11% to $4.2 billion. While we acknowledge the potential of Aon plc (NYSE:AON) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Aon plc (NYSE:AON) and shared the list of best global stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.