Diamond Hill Capital Select Strategy Picked Aon plc (AON) Downplays AI Disruption Concerns

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Select Strategy”. A copy of the letter can be downloaded here . The Strategy declined 0.52% (net of fees), surpassing the Russell 3000 Index’s 3.96%. The performance was driven by stock selection and overweight exposure in industrials, along with an underweight in information technology. Geopolitical developments and changing expectations regarding artificial intelligence (AI) are impacting market dynamics this quarter. The firm is assessing the heightened uncertainty from the situation in the Middle East while also seeking attractive investment opportunities in large-cap, high-quality, cash-generative, and defensive businesses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Diamond Hill Select Strategy highlighted Aon plc (NYSE: AON ) as a newly added position. Aon plc (NYSE:AON) is a professional services firm providing risk management, insurance brokerage, and human capital consulting solutions to organizations. On June 8, 2026, Aon plc (NYSE:AON) closed at $325.85 per share. One-month return of Aon plc (NYSE:AON) was 3.00%, and its shares lost 7.35% over the past 52 weeks. Aon plc (NYSE:AON) has a market capitalization of $69.59 billion.

Diamond Hill Select Strategy stated the following regarding Aon plc (NYSE:AON) in its Q1 2026 investor letter:

"Aon plc (NYSE:AON), one of the largest insurance brokers with leading positions in health benefits and investment consulting, was added to the portfolio as concerns that AI could disrupt insurance distribution weighed on valuations. We believe those concerns are overstated, as commercial insurance brokerage remains complex and highly customized, while the industry’s structure supports high barriers to entry and switching costs, low capital requirements and an attractive growth profile."

Aon plc (NYSE:AON) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 65 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the first quarter, compared to 70 in the previous quarter. 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 stocks legendary value investor Seth Klarman discussed on. In addition, please check out our hedge fund investor letters Q1 2026 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 .