Bell Global Equities Fund Exits Aon (AON) After USI Acquisition Raises Financial and Execution Risks

Bell Global Equities Fund, managed by Bell Asset Management, released its Q3 2026 investor letter. The Fund delivered a strong third quarter of 2026, with its Platform Class returning 5.4% and outperforming the MSCI World ex-Australia Index, which gained 1.5%. The result marked one of the strategy’s strongest quarters of relative performance, following a challenging period for its Quality at a Reasonable Price (QARP) approach. During the quarter, global markets faced rising bond yields, higher energy prices and geopolitical tensions, while investor enthusiasm for artificial intelligence continued to support mega-cap technology stocks. The fund benefited from renewed strength in companies positioned to support AI infrastructure and advanced computing, while selected software and financial holdings faced pressure from concerns about AI-driven disruption. Portfolio managers also used market weakness to initiate positions in businesses they believed offered attractive valuations and durable growth prospects, including an industrial welding equipment manufacturer and a global off-price retailer. At the same time, they exited certain holdings where acquisition-related risks or deteriorating earnings visibility weakened the investment case. Looking ahead, the managers see encouraging signs that market leadership may be broadening beyond speculative, momentum-driven stocks. Although they cautioned that the shift may not persist, they remain focused on high-quality businesses with sustainable profitability, strong balance sheets, pricing power and durable competitive advantages, believing these characteristics can support long-term returns without requiring a sustained change in market conditions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its third-quarter 2026 investor letter, Bell Global Equities Fund discussed Aon plc (NYSE:AON). Aon plc is a global professional services firm providing risk management, insurance brokerage, and consulting services. The one-month return of Aon plc (NYSE:AON) was -8.23%, while its shares traded between $66.39 and $150.46 over the last 52 weeks. On October 28, 2026, Aon plc (NYSE:AON) stock closed at approximately $315.72 per share, with a market capitalization of about $67.43 billion.

Bell Global Equities Fund stated the following regarding Aon plc (NYSE:AON) in its Q3 2026 investor letter:

“We exited Aon plc (NYSE:AON) promptly following the announcement of the US$17 billion acquisition of US Insurance Services (USI), which materially altered the near-term risk-reward. While we continue to view Aon as a good quality insurance brokerage franchise with attractive long-term characteristics, the proposed transaction introduces additional execution and financing risk, including materially higher balance sheet leverage in a rising interest rate environment. Given the more attractive opportunities elsewhere in the portfolio, we elected to exit the position while continuing to monitor the company.”

Bell Global Equities Fund Exits Aon (AON) After USI Acquisition Raises Financial and Execution Risks

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In another article, we covered Aon plc (NYSE:AON) and shared Diamond Hill Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.