SGA U.S. Large Cap Growth Strategy Liquidates Position in Aon plc (AON)
Sustainable Growth Advisers' Q2 investor letter revealed the firm liquidated its position in Aon plc during the quarter, citing a less favorable insurance industry backdrop as pricing softened after years of strong inflation-driven gains. Despite acknowledging Aon's operational performance and high-quality business model, SGA reallocated capital to what it considers more attractive long-term growth opportunities like Arista Networks. The firm underperformed major indices in Q2 due to momentum market dynamics favoring AI-related stocks over other sectors. The portfolio returned 6.8% gross and 6.6% net compared to the Russell 1000 Growth Index's 16.7%. SGA remains optimistic about its long-term strategy, projecting strong revenue and earnings growth ahead. Aon shares have declined in recent months amid broader industry headwinds tied to insurance premium pressures.
Tickers: $AON
Topics: investment performance portfolio management position liquidation