Here’s What is Reinforcing Ariel Focus Fund’s Confidence in Arthur J. Gallagher & Co. (AJG)

Ariel Investments, an investment management company, released its “Ariel Focus Fund” third-quarter investor letter.  A copy of the letter can be downloaded here. US equities increased significantly in the third quarter, driven by the Federal Reserve’s first rate cut, strong corporate earnings growth, and broadening market participation. In this environment, the fund increased by 20.76%, outperforming the 5.33% gain for the Russell 1000 Value Index and the 8.12% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Ariel Focus Fund highlighted stocks such as Arthur J. Gallagher & Co. (NYSE:AJG). 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 -13.61%, and its shares lost 14.23% of their value over the last 52 weeks. On November 12, 2025, Arthur J. Gallagher & Co. (NYSE:AJG) stock closed at $255.86 per share, with a market capitalization of $65.706 billion.

Ariel Focus Fund stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its third quarter 2025 investor letter:

“We added Arthur J. Gallagher & Co. (NYSE:AJG), the world’s largest insurance broker focused on middle-market clients. Shares came under modest pressure during the quarter due to a delay in closing its $13.4 billion acquisition of AssuredPartners. The deal ultimately closed in August 2025, with management now projecting stronger synergies than initially anticipated. Looking ahead, we believe AJG’s scale, specialized expertise, and highly scalable platform position it well for continued organic growth and margin expansion. The resilience of the global insurance market further supports its long-term outlook, reinforcing our confidence in AJG as a core holding.”

Is Arthur J. Gallagher & Co. (AJG) the Top Stock to Buy According to Balyasny Asset Management?

Arthur J. Gallagher & Co. (NYSE:AJG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 62 hedge fund portfolios held Arthur J. Gallagher & Co. (NYSE:AJG) at the end of the second quarter, up from 52 in the previous quarter.  While we acknowledge the risk and potential of Arthur J. Gallagher & Co. (NYSE:AJG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Arthur J. Gallagher & Co. (NYSE:AJG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Arthur J. Gallagher & Co. (NYSE:AJG) and shared Sands Capital Select Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.